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Labor Split 1932

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Submitted By isobells
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October 1929 Labor Gains Power * James Scullin Prime Minister * E. G. Theodore Treasurer * Joseph Lyons Railways Minister * James Fenton Trade Minister
October 1929 Wall Street Crash– Depression begins
Labor is seen as the champion of Workers Rights. However because of the Depression and the shortfall in funds, Labor is not able to finance social reforms. Indeed they are surrounded by debts that need to be paid off.
June 1930 Otto Niemeyer invited to advise Australian on their response to the Depression arrives
Otto Niemeyer believes in a deflationary approach to solving the problems of the Depression. He is supported by Joseph Lyons & James Fenton.
E.G. Theodore – a supporter of the inflationary response to the Depression resigns because of Mungana scandal. Joseph Lyons appointed Treasurer
August 1930 Melbourne Agreement * Deflationary approach agreed – to balance the budget by mid-1931 * Had Nationalist, conservative and right wing support and Lyons and Fenton’s support
Not supported by Theodore or left wing of Labor party (Lang, Beasley)
August 1930 Scullin leaves for Imperial Conference in London away until January 1930 appoints James Fenton as Acting PM.
January 1931 Scullin returns reappoints Theodore as Treasurer. Both Lyons and Fenton resign from the Labor ministry.
SPLIT 1
March 1931 Lyon and Fenton split from the Labor Party with four other Labor MPs. Joins with the Opposition to support a motion of no confidence in the Government.
SPLIT 2
March 1931 E. J. Ward, is elected as a Labor MP for East Sydney. He is a supporter of Jack Lang and the Lang Plan. He is told to support the government’s plan, not Lang’s. When he does not he is not allowed to sit as a Labor MP and eventually, with J.A. Beasley and three others, he leaves the Labor Party.
May 1931 The Lyons’ splinter group forms a new party with the Nationalist it is called the United Australia Party (UAP.) Lyons becomes the new leader of the UAP.
June 1931 Premiers’ Plan
November 1931 No confidence vote precipitates a general election

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