Draft:Scullin government

The Scullin government was the federal executive government of Australia that was led by Prime Minister James Scullin from 22 October 1929 until 6 January 1932. It was comprised of members from the Australian Labor Party, and commenced following the 1929 Australian election, and thus was the successor to the Bruce government. The Labor Party held a majority in the Australian House of Representatives, while holding a minority in the Australian Senate.

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in the Parliament of Australia, of which had

the government was finally brought down

It held

Shortly following the swearing-in of the government, the Great Depression

The ensuing economic depression wreaked havoc upon Australia, with the government unable to effectively respond to the economic and, ensuing, political crisis. The political crisis, and the government, were finally ended by the Australian Labor Party split of 1931, which saw the defection of Labor Members of Parliament as they crossed the floor to unite with the Nationalist Party of Australia to form the United Australia Party. These Members were led by Joseph Lyons, a Tasmanian former Treasurer, who became the first leader of the new party.

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The government did dismantle the compulsory military training scheme, and passed many Acts of Parliament to try to combat the economic and financial crisis caused by the impacts of the Great Depression in Australia.

Background
Prior to the 1929 election, a controversial budget and proposed industrial relations reforms caused mass protests, and led to some Nationalist members crossing the floor to support an amendment to the Maritime Industries Bill 1929 which caused the collapse of the government; this was seen by Stanley Bruce as an implied vote of no confidence.

The Hughes and Stanley governments had maintained heavy overseas borrowing, enough so that, by [], Australia had become the biggest debtor to the City of London. In 1927, the Bruce government had just presided over a £5.5 million budget deficit and sought to reduce spending.

Treasurer Earle Page, brought down the 1928 budget which massively reduced spending and new taxes to finance the debt and its repayments to creditors.

passed the Transport Workers Act 1928, which required all dockworkers to acquire licenses to work. This was in response to the Waterside Workers' Federation of Australia (WWF) initiating industrial action after the federal award worsened conditions due to previous government reforms that required economic conditions to be factored into the decision-making process. The Act effectively was a strikebreaking measure as any worker on the docks required the government's permission to be able to find work.

The Maritime Industries Bill 1929, introduced as a government bill, would have abolished the Commonwealth Court of Conciliation and Arbitration, thus handing back industrial matters to the states. This failed ultimatum to decentralise industrial relations, flew in the face of the Australian settlement, a social contract that had centralised wage arbitration as a fundamental pillar.

Economy and trade
On 24 October 1929, the New York Stock Exchange experienced a significant decline upon its opening, which only recovered due to a coordinated purchasing of stocks. However, this would be the beginning of the Wall Street Crash of 1929, with little stopping its volatile and continued decline. This financial collapse, alongside other events and the responses to them, is considered the start of the Great Depression.

The Australian economy was heavily dependent on Agriculture,

falling commodity prices, such as wool and wheat,

Wool prices, which were already falling since 1925, fell dramatically in 1930,

The Government was left to decide what path to take, as many plans were proposed to combat the economic

Ted Theodore, a former Premier of Queensland, was appointed as the Treasurer of Australia.

However due to allegations of scandal, he forced to resign the post on 9 July 1930

Theodore Plan was inflationary and proto-Keynesian in its approach

The Commonwealth Bank of Australia (Reserve Bank of Australia) opposed

In August 1930, the Governor of the Bank of England, Sir Otto Niemeyer, and his associated delegation arrived in Australia at Scullin's request to assess/examine its economic position. What they suggested to combat the crisis to the Prime Minister and State Premiers, was to implement deflationary measures, which was advocated by orthodox economics at the time; this intergovernmental accepted pact was termed the Melbourne Agreement.

In 1931, the federal and state governments met to discuss a compromise to combat the recession – the resultant proposal became known as the Premiers' Plan. This called for immediate spending cuts, tax hikes, and reducing the repayments on internal interest rates.

Defence
On 1 November 1929, conscription during peacetime, for the purposes of compulsory military training, was abolished. The Universal Service Scheme, as it was known, was enacted through amendments to the Defence Act 1903 in 1909 following a report by Lord Kitchener, and was passed with bi-partisan support by the Labor Party and, the ancestor to the Nationalist Party, the Liberal Party.

the defence budget was slashed

Foreign affairs
Following the Melbourne Agreement, Scullin left for the 1930 Imperial Conference in the United Kingdom on 25 August 1930, and was gone from the country until 6 January 1931. Due to the financial situation, the government ignored recommendations to establish a diplomatic mission to the United States

Society and welfare
During this tumultuous period, there were multiple critical voices who spoke out in dissent over the handling of the crisis or the welfare cuts. Of particular note was Jack Lang, who on multiple occasions criticised the Scullin Government, despite being the Leader of the New South Wales Labor Party. In 1930, he became the Premier of New South Wales

was a significant critic

of on the Government

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whom

had become and vehemently opposed to the Premiers Plan and instead insisted that the country should be led to default in order to

Lang Labor

Following the retirement of Lord Stonehaven as Governor-General of Australia, Sir Isaac Isaacs was appointed to the position on the advice of Scullin.

This was not without controversy however, as he was the first Australian to hold the office since all previous holders had been British aristocrats.

It was especially heavily opposed by George V, who wished for William Birdwood, a former British commander of the Australian and New Zealand Army Corps, to take office though eventually he relented.

Defeat
Following the death of Labor MP John West, the 1931 East Sydney by-election was called, and another was triggered at the 1931 Parkes by-election, after the resignation of Labor MP Edward McTiernan to become a Justice of the High Court of Australia.

At the 1931 Australian federal election, due to the

It would be another eleven years until the ALP, under John Curtin, was again in government and thirteen years until it was swept back in office via an election.