Political Crisis At Canberra— Labour Backs Down Under Election Threat

Greymouth Evening Star, 23 June 1950, Page 5

Political Crisis At Canberra— Labour Backs Down Under Election Threat

CANBERRA, This Day (Rec 1 p.m.).—By deciding to hold an immediate election rather than compromise on vital issues, the Menzies Government won two. major victories last night and early today. The Labour Party ended a three-hours crisis by backing down on its threat to withhold supply in the Senate. Soon afterwards the Labour Party backed down again by passing the Child Endowment Bill in the Senate as originally submitted. The Government and Opposition were, however, still completely deadlocked on the Communist Party Dissolution Bill arid the Bank Bill when Parliament adjourned early today for the winter recess.

After the adjournment the Gov-, ernment. announced that the Prime Minister, Mr Menzies, would make an important statement tonight as Labour had refused to withdraw its amendments to the Anti-Communist Bill on the onus of proof, trial by jury and extension of the right of appeal. Labour Responsibility Mr Menzies is expected to tell the nation that if Labour wants to force a double dissolution the Government is ready for it and that Labour must now take the responsibility for the Bill not becoming law quickly. The crisis began when the Government was notified that the Labour majority in the Senate was considering refusing supply unless the Government agreed to an amendment to the Child Endowment Bill. The amendment in dispute directed the Arbitration Court not to take endowment payments into account when fixing basic wages. The Cabinet met immediately and decided that, if Labour tried to force this issue, the Government would call for a general' election within eight weeks.

As soon as the Cabinet decision became known, the Labour executive called an emergency meeting of its members. Afterwards the deputy Opposition Leader in the Senate,

! Senator McKenna, took a message to i the Government leader that was virtually an ultimatum. ' Senator McKenna' said the Senate would withhold supply unless the Government took, some action to make it clear to the Arbitration Court .that Parliament considered the endowment should not be taken into ! consideration when fixing the basic. . wage.

Midnight Conferences

Both the Labour executive and the Cabinet met near midnight and , a series of conferences was held. The Labour executive instructed the Labour senators to pass supply.

A vigorous battle in the Senate ensued, after which the vote for the removal of the amendment was put. The Labour men sat silent and the motion was carried on the voices. The Government amendment, that the Bill should operate, from June 19, was then agreed to.