CRISIS ENDED.

Ashburton Guardian, Volume 61, Issue 48, 6 December 1940, Page 5

CRISIS ENDED.

THE COMMONWEALTH BUDGET.

LABOUR ACCEPTS COMPROMISE.

(United Press Association —Copyright.) CANBERRA, December 5.

The combined Labour Parties at a meeting this afternoon reconsidered proposals for a compromise on the Budget, and, in the light of the threat by the Prime Minister (Mr R. G. Menziesl to treat these a's final and the danger of another election in the event of their rejection, the Leader of the Official Labour Party (Mr J. Curtin) announced to-night Labour’s acceptance of the compromise terms and’his intention to withdraw his adverse comment. Thus the crisis is ended. - The concessions which the Government offered are as-follows: The raising of the Federal income tax exemption from £l5O to £200; a domestic allowance of 7s a week for wives, with a child or children, of all men in the fighting services; the Commonwealth to: make an allowance of £1,000,000 to the wheat farmers for drought relief ; the standard rates for old age and invalid; pensions to be raised Is to £1 Is a 3week; the war-time companies tax tj be the subject of investigation by u select committee, the amount budgeted for front this source to be increased; central bank credit to be investigated; questions capable of being discussed by the War Council to be brought before the Council before going to Parliament; legislation , v to give effect to the Budget in its amended form to be passed and the amendments now before the House to he withdrawn. The concessions would add another £4,500,00 to the Budget.

MEMBERS CHANGE THEIR VIEWS

SWING REVERSE'S THE VOTING

(Received This Dav. 9.5 a.m.) CANBERRA, December 5.

The Federal Parliamentary Labour Party by 23 v-otes to 19 accepted the Advisory War Council’s proposals for a compromise. This constituted complete .reversal of the attitude last night, when it was resolved to try to obtain further concessions in. keeping with the Labour policy. The meeting to-day was stormy, revealing a sharp ’division between, two strong factions, one reported to be led by Dr: Evatt. Several members who last night had opposed the compromise terms changed their view to-day anti the transfer of their votes was sufficient to swing the meeting behind Mr J. Curtin, who recommended 'acceptance of the War Council’s proposals.