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Fri 21 Jul 1939 - The Sydney Morning Herald (NSW : 1842 - 1954)
Page 11 - MR. SPOONER RESIGNS FROM CABINET.
MR. SPOONER RESIGNS
FROM CABINET.
DISPUTE ON RELIEF WORKS
POLICY.
Considered to be "Major Issue."
CLIMAX TO LONG-STANDING DISCORD.
The Minister for Works and Local Government, Mr.
Spooner, resigned from the Ministry last night.
He said that the major issue was the Government's policy
on relief works. The plan for control of his department's expen-
diture was a minor issue, and he was not prepared to resign
because of that.
The Premier, Mr. Stevens, expressed regret at Mr. Spooner's
resignation, and said that Mr. Spooner appeared to treat a minor
difference as a reason for resignation.
For some time, relations between Mr. Spooner and his
colleagues have been strained. Matters came to a head at Wed-
nesday's U.A.P. meeting and reached breaking point as a result
of a move in the Assembly yesterday for an inquiry into an alleged
statement by Mr. Spooner about "Budget faking."
Some U.A.P. members think that Mr. Spooner will seize an
opportunity, sooner or later, of attacking the Government.
MR. SPOONER'S STATEMENT.
The following statement was issued
last night by Mr. Spooner:—
"It is with regret that I have resigned from
the Government of this State. Now that this
decision has been reached desire to state
that my major difference with the Cabinet
has been overshadowed during this week by
what I regard as a minor issue.
"The latter is represented by certain Cabi-
net decisions that tended to remove authority
that I have exercised for some years.
"Although there are principles involved, I
was not prepared to allow this issue to develop
into a personal matter. I did not regard it
as a sufficient cause for my resignation, par-
ticularly as certain modifications could be
made. In any event, I agree with the principle
of collective Cabinet control of large expen-
diture, provided it applies equally yo all Crown
Departments and to the statutory bodies as
well.
"The major issue is the Government's policy,
financial and otherwise, of providing unem-
ployment relief. I cannot find myself in
accord with suggested Cabinet policy. I re-
gard this issue as vital to the State and many
of its citizeens, particularly at this juncture.
DESIRE TO RESIGN.
"I should add that my desire to retire from
the Cabinet has been known to the Premier
for several weeks, and he has persuaded me
to remain. I have continued until now
because I do not wish that my resignation
should injure the Government or the United
Australia Party. Had I resigned yesterday,
when party feeling ran high in the House, I
might have precipitated a crisis, and the
Premier informed me that, if this should
happen, he would be compelled to consider
recommending a dissolution.
"I have no present intention to move a
censure on the Government nor to support
the motion of censure now before the Hoase.
"If, however, I decide to offer criticism of
the Government's policy on finance I am
free to do so, either now or in trie future.
"Since I disagree with certain policy de-
cisions of the Cabinet in regard to finance
and unemployment relief, it will be easier
for the Cabinet to put its policy into opera-
tion if I retire, and I accordingly do so with
a deep sense of regret after seven years of
Ministerial office.
"I shall remain the member for Ryde, and
continue to serve my constituency in the
House."
When Mr. Spooner was asked last night
what his intentions were in regard to politics,
he replied. "Who can tell? I certainly have
no intention of leaving politics. I have found
the work very interesting, and I hope I shall
see many more years of political life."
PREMIER'S STATEMENT.
The Premier, Mr. Stevens, last night said:
"I regret the departure of a colleague with
whom I have worked in close association dur-
ing a continuous period of more than seven
years.
"I have had his capable assistance in the
handling of many problems for which I was,
and still continue to be, grateful.
''During his long term as a Minister in
various departments, his industry has never
relaxed. He has Formed the opinion that
what appears to me to be a minor difference
in policy should be treated by him as a
cause for resignation.
"Whatever one may feel about his atti-
tude In this matter, it is satisfactory to know
that as a private member his services will
still be available to the Legislature."
Mr. Stevens indicated last night that he
had not yet decided upon Mr. Spooner's suc-
cessor.
It has been suggested that the Premier may
decide to weaken the opposition to him in the
party room by selecting one of the critics of
his policy as the new Minister.
Friends of the Premier say however that
it is most unlikely that he will go outside the
ranks of those who have been most loyal in
their support of the Government. Because of
this the name of Mr. N. Thomas (Bondi) has
been prominently mentioned as a likely ap-
pointment as an assistant Minister. There
is also important support for the claims of
Mr. V. H. Treatt (Woollahra). Messrs.
Tonking (Orange) and Howarth (Maitland)
have also been mentioned for the new port-
folio.
Mr. S.A. Lloyd (U.A.P., Concord) last night
said that as Mr Spooner's resignation from
the Cabinet had been brought about by allega-
tions that the last Budget had been faked.
the Premier, Mr. Stevens, should call a meet-
ing of the U.A.P. to discuss the matter.
STRAINED RELATIONS.
The Premier and Ministers were not sur-
prised at Mr. Spooner's action. For some time
it has been well known that he has been
out of sympathy with vital parts of the Gov-
ernment's policy.
His relations with some Ministers, particu-
larly, have been very strained and during
recent months his association with the Cabinet
as a whole has been unhappy.
It only remained for a development which
tool place at Wednesday's U.A.P. meeting to
provide the breaking point.
Before Parliament met yesterday morning
many members felt that Mr. Spooner would
not continue his association with the Cab-
net in view of the fact that he was so much
out of step with his colleagues on financial
and unemployment relief policy.
Mr. Spooner's demeanour in the Legislative
Assembly dining the morning indicated that
he contemplated serious action and Minis-
ters were not left long in doubt.
Early in the afternoon Mr. Spooner visited
the Premier's room and intimated to Mr.
Stevens that he intended to resign.
Mr. Stevens and Mr. Spooner had a long
talk, and Mr. Spooner left the Premier's office
showing signs of the ordeal through which
he was passing.
Soon afterwards, Mr. Stevens sent for a
number of his colleagues and informed them
that Mr. Spooner intended to resign from the
Government.
The resignation was received with satis-
faction by Ministers who have regarded Mr.
Spooner's attitude as a source of continued
friction. The Minister for Transport, Mr.
Bruxner, in particular, has for some time
resented Mr. Spooner's policy in administer-
ing the Governments relief works policy
LATE NOTIFICATION.
Although Mr. Spooner told the Premier in
Parliament House early yesterday aftertoon
that he would resign from the Government a
few hours later, it was not until 10 p.m. that
Mr. Stevens received Mr. Spooner's formal
notification that he wished to resign. Mr.
Spooner visited Mr Stevens in his office in
Macquarie Street and discussed the position
with him.
It was 11 p.m. when Mr. Spooner informed
the Premier that he had prepared his state-
ment for the Press. A copy of that state-
ment when to the Premier, who then released
his own announcement.
DISPUTE WITH MR. STEVENS.
Some months ago Mr. Spooner sent
the Premier a very outspoken letter on
the works and financial policy.
There was no serious reactin, but when
Mr. Spooner subsequently stayed away from
a meeting of the Cabinet and showed that
he was in serious disagreement with his col-
leagues, there was curiosity among well-in-
formed observers as to how long Mr. Spooner
could remain in the Cabinet. Some Ministers
felt that the Premier should ask Mr. Spooner
to hand in his resignation. The Premier
was reluctant to take that extreme course at
that stage.
Last Friday, Mr. Spooner's plan for financing
works was revealed. An important feature
of that was a proposal to spend the proceeds
from the wages and special income tax on
employment and costs relating to employ-
ment.
Mr. Spooner desired that this income should
be withdrawn from the Budget and diverted
into specially "earmarked" account which
would be used in providing employment.
PREMIER DISPLEASED.
The Premier was displeased at the announce-
ment of that plan immediately after mem-
bers of the Parliamentary U.A.P. had pe-
titioned him to meet members at a prty
meeting. Mr. Spooner took that petition
to Mr. Stevens' home, where he was ill. the
Premier had already arranged to address a
joint party meeting of Ministerial supporters.
and he declined at that stage to meet the
U.A.P. members who wanted to discuss the
unemployment position.
The Cabinet decided to reduce Mi Spooner's
powers over expenditure on unemployment
relief and to create a Cabinet sub-committee
to review proposed works, leaving to the
Treasurer the power to veto expenditure on
subsidised relief works in excess of £2,000.
That was a blow at Mr. Spooner, who was
quickly pressed by a number of the U.A.P.
members to attack the Premier at a party
meeting.
At the joint party meeting on Tuesday the
atmosphere was electrical, culminating in the
departure from the meeting of several U.A.P.
members who opposed the Government's plan
for control of relief works.
Proceedings at the U.A.P. meeting next day
were marked by angry recriminations. Mem-
bers strongly condemned the Government's
financial and employment policy. Some of
them expected that Mr. Spooner would have
led an attack on the Premier, but as Ministers
had promised the Premier that they would
not speak, Mr. Spooner remained silent except
to reply to a personal attack by Mr. Tonking
(Orange).
Before the meeting ended an agreement
between Mr. Spooner and the Cabinet on the
works and financial issue was announced.
This was resented by some U.A.P. members
particularly Mr Murray Robson (Vaucluse)
who said it was a backdown.
Mr. Robson added that Mr. Spooner had
told him that the last Budget was faked
and that the finances of the State had been
manipulated. That statement caused a sen-
sation, and keen observers expected that it
would lead to early developments.
Those developments came swiftly when Par-
liament met yesterday and the deputy leader
of the Opposition, Mr. Baddelely demanded
an inquiry into Mr.Robson's statement.
Mr. Spooner looked very serious, and it
soon became evident that he was contemplat-
ing resignation.
Some Ministers felt that if Mr. Spooner
had made that statement to Mr. Robson he
could not remain in the Cabinet. Other
Ministers saw in it an excellent opportunity
to compel his resignation. Mr. Spooner soon
after was closeted with the Premier, and
when the interview ended the news drifted
into the party rooms that Mr. Spooner would
resign from the Cabinet before nightfall.
Some observers consided that Mr.
Spooner's resignation would be averted. It
has been known that Mr. Spooner held ambi-
tions for future leadership of the U.A.P.
and the Premiership and political observers
have taken the view that since there was
no certainty that the Premier intends to seek
Federal honours, Mr. Spooner was facing a
difficult task.
POSSIBLE COURSE.
While the resignation of Mr. Spooner from
the Ministry will achieve a greater degree
of unity among Ministers on the works and
financial policy of the Government, there is
speculation as to what course Mr. Spooner
will follow as a member of the rank and file
of the U.A.P.
It is expected that he will not make any
strong move against the Government or the
Premier for the time being, but Mr. Spooner's
friends in the Parliamentary U.A.P. room say
that he will seize an opportunity sooner or
later of attacking the Government and par-
ticularly the Premier, on the Government's
employment and financial policy.
Mr. Spooner's hostility to the Premier has
existed for some time, and it is not expected
that the latest developments which brought
about the retirement of Mr. Spooner from
the Ministry will restore the friendly relations
which existed between them early in their
Ministerial careers.
When the Cabinet met on Monday the
relations between the Premier and Mr.
Spooner were obviously strained because Mr.
Stevens was aware that a substantial section
if the Parliamentary U.A.P. was looking to
Mr. Spooner to challenge him on the unem-
ployment issue.
(Mi Spooners career and portrait
and Assembly debate, page 12.)
Article identifier
http://nla.gov.au/nla.news-article17609192
Page identifier
http://nla.gov.au/nla.news-page1169742
APA citation
MR. SPOONER RESIGNS FROM CABINET. (1939, July 21).The Sydney Morning Herald (NSW : 1842 - 1954), p. 11. Retrieved March 31, 2025, from http://nla.gov.au/nla.news-article17609192
MLA citation
"MR. SPOONER RESIGNS FROM CABINET."The Sydney Morning Herald (NSW : 1842 - 1954) 21 July 1939: 11. Web. 31 Mar 2025 <http://nla.gov.au/nla.news-article17609192>.
Harvard/Australian citation
1939 'MR. SPOONER RESIGNS FROM CABINET.',The Sydney Morning Herald (NSW : 1842 - 1954), 21 July, p. 11. , viewed 31 Mar 2025, http://nla.gov.au/nla.news-article17609192
Wikipedia citation
{{cite news |url=http://nla.gov.au/nla.news-article17609192 |title=MR. SPOONER RESIGNS FROM CABINET. |newspaper=[[The Sydney Morning Herald]] |issue=31,686 |location=New South Wales, Australia |date=21 July 1939 |accessdate=31 March 2025 |page=11 |via=National Library of Australia}}

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