AUSTRALIAN BUDGET

Greymouth Evening Star, 6 December 1940, Page 8

AUSTRALIAN BUDGET

MR. MENZIES’ FINAL OFFER LABOUR’S ACCEPTANCE [BY CABLE. —PRESS ASSN. —COPYRIGHT.] CANBERRA, December 5. , The main feature to-day of the crisis which<has arisen over the Federal i Budget was the Government’s deterimination to make no further compromise to Labour. A joint meeting of the Government parties endorsed the Cabinet’s decision. The House of Representatives sat for only two minutes to-day and adjourned until to-night to allow members to consider the position. The Prime Minister (Mr. R. G. Menzies) made a statement emphasising the need for continuity in the war I administration and the Government’s ! desire to dispose of this crisis on amicable and fair terms. He indicated that the Budget would be redrafted, on the lines of yesterday’s compromise and again submitted to Parliament. The Victorian Independent member, Mr. Wilson, has not yet disclosed his attitude on the Budget. The new Labour member of Kalgoorlie, Mr. H. V. Johnson, who won the seat with an absolute majority of 3,844, attended Parliament for the first time yesterday, but was not allowed to take his seat until the return of the writs. . —LATER. The combined Labour Parties at a meeting this afternoon reconsidered proposals for a compromise on the I Budget, and, in the light of the threat '.by the Prime Minister (Mr. Menzies) Ito treat these as final and the danger |of another election in the event of their rejection, the Leader of the Official Labour Party (Mr. Curtin) announced, to-night, Labour’s acceptance of the compromise terms and his intention to withdraw his adverse amendment. Thus the crisis is ended.

LABOUR DISSENSIONS. (Received December 6. 9.5 a.m.) CANBERRA, December 5. By 23 to 19 votes, the Federal Parliamentary Labour Party accepted the Advisory War Council’s proposals for a compromise. This constituted a complete reversal of the overnight attitude, when it was resolved to try to obtain further concessions, in keeping with Labour policy. To-day’s meeting was stormy, revealing a sharp division between two strong factions, one reported to be led by Dr. Evatt. Several members, who overnight had opposed the compromise terms, changed their view to-day, and the transfer of their votes was sufficient to swing the meeting behind Mr. Curtin, who recommended the acceptance of the War Council’s proposals.