POLITICAL FEUD

Wairarapa Times-Age, 3 August 1939, Page 8

POLITICAL FEUD

BITTER DEBATE IN NEW SOUTH WALES EX-MINISTER ATTACKS PREMIER. i MOTION TAKEN AS DIRECT CENSURE. By Telegraph—Press Association—Copyright. SYDNEY. August 2. The strained relations between the New South Wales Premier, Mi- Stevens. and the former Minister of Public Works and Local Government. Mr Spooner (whose resignation was announced last month), reached a climax in the Legislative Assembly today consequent upon a motion moved’ by Mr Spooner recommending a new financial policy for 1939-40 and the creation of a special trust account for the proceeds of the wages and special income taxes, which must be used exclusive13’ for the relief of unemployment. In the course of his reply to bitter criticism b> r Mr Spooner, the Premier announced that he had decided to regard Mr Spooner's motion as one of direct censure on the Government.

Mr Spooner repudiated the censure suggestion, and said that his motion represented an attempt to offer constructive assistance. He declared that the Premier had neglected the State's finances about the time the latter was seeking to enter Federal politics, and ’ now "he is trying to take it out of the hides of the unemployed.” Mr Spooner claimed that the true deficit for 1938-39 was £4,350,000 and not £2,750.000, as represented by the ’ Treasurer. Moreover, a sum of £l,000,000 voted by Parliament for unemployment relief had instead been applied to a reduction of the real deficit, while the million pounds which had eventually' been applied to the unemployed had been obtained in such a manner that it would not show as part of the general deficit. Mr Spooner said the Government still had no policy and was heading for a. tailspin. The Premier, replying, declared that Mr Spooner would live to regret his speech. He resented the suggestion that ho could net be trusted and repudiated the allegation of negligence in handling the State finances. In and out of season, he said, he had taken steps to rectify the financial drift. Mr Spooner had attended sever- - al special Cabinet meetings at which I he had warned his colleagues of the i dangers ahead, and Mr Spo'oner should j have taken the honourable ■ course of telling the House what had occurred at the Cabinet meetings on the subject. The Premier also answered Mr Spooner’s criticism relating to the deficit. disclaiming any attempt at manipulation on the taxation funds, and added that the Government already was considering a proposal to separate the wages and unemployment taxes from the ordinary revenue. The debate is proceeding. ADJOURNMENT TAKEN CL,OSE DIVISION EXPECTED. SYDNEY. August 2. The Legislative Assembly adjourned to tomorrow, when a division on the cen-iire motion is expected to be very close. Several I, Government supporters are likely to cross the floor of the House. The result of a defeat of the Stevens ] Government would involve either a I dissolution or Mr Spooner accepting a 1 commission to form a Ministry. I