Cite: http://nla.gov.au/nla.news-article12059365
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FORECAST
OF
CHANGES
IN FEDERAL:
MINISTRY
MR. MENZIES MAY
BE TREASURER
CANBERRA, Thursday.-With
the defeat to-day of the no confidence motion in the House of Representatives by 41 votes to 28, informal talks upon the reconstitution of the Federal Cabinet have been begun. A completely new element has been intro- duced into the situation by the unexpected resignation to-night of the Postmaster General (Senator McLach- lan).
Yesterday it was feared that a Cabinet crisis might be precipitated by the resignation of the Attorney General (Mr. Menzies). The situa- tion was less tense to-day.
Mr. Menzies' colleagues believe that after a careful review of the differences in policy with some of his colleagues he is likely to decide that the difficulties they create are not insuperable, and it is accord- ingly expected that he will continue at Mr. Lyons's disposal when the Cabinet is re-formed.
The belief that Mr. Menzies will remain in the Ministry has given general satisfaction. It is recognised that his wide experience and his undoubted capacity, both in debate and in the counsels of the Cabinet, are of the greatest value. His resignation would undoubtedly have weakened the Cabinet consider- ably.
Though negotiations relating to the Cabinet reconstruction will proceed to-morrow, it is not expec- ted that they will be completed be- fore the week-end, and Mr. Lyons is unlikely to announce the changes until Monday at the earliest, and probably not until Tuesday.
At present interest centres upon the changes to be made in defence administration. Most members of the United Australia party, and many members of the Country party, believe that there should be a complete change in the Defence Department.
On the other hand, it Is clear that the Minister for Commerce (Sir Earle Page), who is the leader of the Country party, is resisting the transfer of Mr. Thorby from the Defence Department.
Two proposals for the adjustment of difficulties in the Defence De- partment are believed to be under consideration. They are: - (1) The administration of the depart- ment by one senior Minister, who will be responsible for the whole of the department, but who will be granted the assistance of an active and competent Assistant Minister to relieve him of as much as pos- sible of minor work.
(2) The division of the depart- ment into two sections, each under a senior Minister. The division proposed is that one Minister should take complete charge of the three fighting services, and that the second should take over muni- tions supply, the co-ordination of industry for defence, general co- operation with States and other authorities, matters relating to the supply of materials In an emer- gency, and the Civil Aviation De- partment.
Mr. Casey Mentioned
It is believed that most members of the United Australia party prefer the first course, and that the Treasurer (Mr. Casey) would be an acceptable appointment to the de- partment. Leading members of the Country party, on the other hand, are pressing for the adoption of the second course, and it is be ,lieved that they will urge that Mr.
Thorby should retain control of ' one of the two Defence portfolios proposed.
When the House of Representa- tives adjourned to-night the belief had been strengthened that Mr. Lyons might be persuaded by Sir Earle Page to leave Mr. Thorby as Minister for Defence.
The resignation of Senator
McLachlan has greatly complicated j the situation hi one respect, but has opened an avenue for an easier solution.
The Country party is anxious to ' gain control of the Post-office, and . now that the portfolio is to be re- , allotted the way has been opened . for an exchange of duties which would meet this request, as either Sir Earle Page or Mr. Thorby could be given the Post-office and the
Commerce Department could be I also retained for the Country
party. '
This would facilitate the transfer of Mr. Casey to Defence, and since
it now seems likely that Mr. Menzies i will continue to be available to Mr. Lyons, his transfer to the Treasury would provide a satisfactorty ad- justment of the vacancy in that department.
Mr. Lyons is now faced with the , necessity for providing one new full Minister to replace Senator McLachlan. Although it is not
strictly necessary that a full port- , folio should go to the Senate, it
is taken for granted that the ap- , pointment will be from that Cham-
ber.
On present indications the claims of the Ministerial Whip for the new Senate position appear to be out- standing. Senator McLeay was considered for Cabinet office a year ago, and he missed promotion only because of the traditional obligation to provide representation for each State in the Ministry.
(No-confldence Debate and Hcsult,
Paie 3)