CABINET CLASH

Wairarapa Times-Age, 21 July 1939, Page 5

CABINET CLASH

NEW SOUTH WALES MINISTER RESIGNS

FOLLOWING ON HEATED PARTY MEETING. DISPUTE WITH PREMIER. By Telegraph—Press Association— Copyright. SYDNEY, July 20. ,\ crisis in Hie New South Wfiles Cabinet cnlniinaled tonight in the resignation of Air E, S. Spooner, Alinisler of Public Works and Local Government.

The trouble, which had been simmering, for some time, originated in the efforts of the Premier, Mr Stevens, to restrict the scope of Mr Spooner's activities on relief works and to transfer the control of them to a sub-committee.

A heated party meeting disclosed that Mr Spooner had many supporters and also revealed a threat by Mr Spooner to challenge Mr Stevens for the Premiership. There was a tense scone in the Legislative Assembly when the deputyloader of the Labour Party. Mr Baddeley, asked for an inquiry into a statement allegedly made to a colleague by Mr Spooner that the Budget and finances of the State had been faked, which the Premier indignantly denied.

The House divided on Mr Baddeley’s proposal, which was negatived by 32 votes to 29, but it would have been carried except for the failure of the division bell to ring in a room in which four Labour members were gathered. They were unaware of the division, which saved the Government from a vital defeat.

Mr Spooner said the major issue was the Government’s policy on relief works. The plan for control of his Department’s expenditure was a minor issue and he was not prepared to resign because of that. Mr Stevens expressed regret at Mr Spooner’s resignation. He said Mr Spooner had appeared to treat a minor difference as a reason for resignation.

Dealing with a reported statement about faked finances, Mr Spooner said he had had a talk with a member concerning variations in Budgetary items, but the newspaper reports had not given a correct interpretation of the conversation.

“The suggestion that there has been any manipulation of accounts or of the Budget is ridiculous.” said Mr Stevens.