With the support of the state party, the Labor Premier of New South Wales, Lang announced a policy of foreign debt repudiation, known as the "Lang Plan", and imposed a moratorium on the New South Wales government's overseas loans. This policy was in contrary to the policy of the federal Labor government led by James Scullin. In March 1931, the Federal Executive expelled the New South Wales branch from the party, including Jack Beasley and Eddie Ward, a result of its disloyalty to the federal Labor government of Scullin. The expelled branch became a separate parliamentary party known as Australian Labor Party (New South Wales), commonly known as Lang Labor. In the federal parliament, Lang Labor was led by Beasley.