LABOUR ACCEPTANCE OF COMPROMISE

Dominion, Volume 34, Issue 63, 7 December 1940, Page 12

LABOUR ACCEPTANCE OF COMPROMISE

Commonwealth Budget

SHARP CAUCUS DIVISION

REVEALED

CANBERRA, December 6.

The Federal Parliamentary Labour Party’s decision to accept the Advisory War Council’s proposals for a compromise on tlie Budget was made by 23 votes to 19. This constituted a complete reversal of its attitude overnight, when it was resolved to try to obtain further concessions in keeping with the Labour policy. The latest meeting was u stormy one, and revealed a sharp division into two strong factions, one of them reportedly led by Dr. Evatt. Several members who had last night opposed the compromise terms changed their view today, and the transfer of their votes was sufficient to swing the meeting behind the leader, Mr. Curtin, who recommended acceptance of the War Council’s proposals. Mr. Curtin later announced Labour's acceptance of the compromise terms and bis intention to withdraw his adverse amendment.

The concessions which the Government announced it was prepared to make were.

Raising of the Federal income tax exemption from £l5O, to £2OO. A domestic allowance of 7/- a week for the wives with a child or children of all men in the fighting services. The Commonwealth to make an allowance of £1,000,000 Io the wheat farmers for drought relief. The standard rates for oid age, and invalid pensions to be raised 1/-, to £l/1/a week. The wartime companies tax to be tlie subject of an investigation by a select committee and the amount, budgeted -or from this source to be increaseci. 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 to give effect to tlie Budget in its amended form to be passed and the amendments now before the House to be withdrawn. The concessions would add another £4.500,000 to the Budget.