The Scullin government, 1929-1932

Abstract

The Scullin Government held office for twenty-seven months, October 1929 - January 1932, at a time when Australia was beginning its experience of the worst economic depression in its history. The Government was severely handicapped by the constraints of the depression. It was also crippled by its lack of a majority in the Senate. As a result the Government enacted only a small amount of legislation, other than routine measures, and hardly any which embodied the principles of the Australian Labor Party. The Scullin Ministry was elected by the Federal Parliamentary Labor Party (Caucus) in October 1929. Later, in March 1931, Caucus declared all Ministerial and other positions vacant and elected a second Ministry. Further changes were made in June 1931. Throughout, the Ministry as a whole was moderate and cautious. A significant number of Ministers were associated with the Australian Workers' Union. The Government's first months were taken up with budgetary and industrial matters. The latter involved the Government in the N.S.W. coal dispute and the aftermath of disputes on the wharves. It was also caught up in a minor but revealing crisis over preference to unionists. And after several months of negotiation, a mutilated Amending Act to the Commonwealth Conciliation and Arbitration Act was accepted by the trade unions, the Caucus and the Opposition in the Senate. At first the Scullin Government received little attention from the State Brainches of the Party or most of the trade unions. But this situation changed, slightly and briefly, after mid-August 1930. In July-August 1930 the Cabinet reappointed Sir Robert Gibson as Chairman of the Commonwealth Bank Board; this aroused hostility within the Party, and it was a decision which was shortly regretted. At about the same time, the Federal Treasurer, E.G. Theodore, was forced to resign as the result of allegations of past corruption. In August Scullin and Brennan (Attorney-General) left for England. Their absence, with Theodore's, contributed to the Caucus 'rebellion' of late 1930. This was sparked off by the visit of Sir Otto Niemeyer of the Bank of England, whose advice helped create the deflationary Melbourne Agreement. This policy divided the Federal Ministry and Caucus between August and December 1930. In the end a feeble compromise was agreed upon but the divisions were barely concealed. Matters came to a head in early January 1931, when Scullin returned to Australia. Within a few weeks turmoil in the Federal Party was again at fever pitch. Although Theodore's name was still not cleared, Scullin secured Caucus approval for his reinstatement as Treasurer. Shortly afterwards six members of Caucus crossed the floor and joined the Opposition. Almost simultaneously, a group of seven N.S.W. Federal members led by J. Beasley (an Assistant Minister) left the F.P.L.P. and established a separate 'party'. Their motives are to be found in the politics of the N.S.W. Branch of the Party and the Lang plan. In March-April 1931 the Government attempted a policy offensive but its efforts were thwarted, yet again, by the hostile Senate. At this point it seemed that the Government was about to begin a belated attempt to secure a double-dissolution. However, its financial difficulties at last overwhelmed it and, pressed by the threat of default , in mid-1931 the Government accepted and implemented the deflationary Premiers' Plan. With the exception of the Premiers' Plan the Government was relatively inactive between mid-April and November 1931. Finally, on 25 November, the Beasley group challenged the Government and brought about its defeat in the House of Representatives. The Government suffered a severe defeat at the subsequent election. Throughout the Government's term of office it was subject to the scrutiny of the extra-parliamentary organisations of the A.L.P. Although it normally met triennially, the A.L.P. Federal Conference met three times in 1930-1931. The A.L.P. Federal Executive was also very active. For various reasons neither institution had much influence on the Federal Labor Government. With the single exception of N.S.W., the A.L.P. State Branches paid only slight attention to the Scullin Government and had little effective influence on it. This was also the case with a majority of the trade unions in all States. The most notable exception was the Australian Workers' Union. But there was a large number of unions which made demands on the Government of a 'non-political' kind; this was particularly evident in the Government's tariff policy. The unions, however, played an important though indirect role in the vital Government decision not to seek an early double dissolution. Show more