The Grey River Argus FRIDAY, December 6th, 1940 FEDERAL BUDGET REVISED

Grey River Argus, 6 December 1940, Page 6

The Grey River Argus FRIDAY, December 6th, 1940 FEDERAL BUDGET REVISED

The line adopted by the Labour Party, when its strength is equal to that of the other parties combined, appears to have been for Australia a genuine gain at this critical time. Without a single division in the new Parliament, the fiscal issue, second in the war effort to no other in importance, appears to have been settled, and the political crisis to have ended. While this represents a policy of consistency on the part of the Opposition, who from the outset have made good their claim to afford the war effort all support, the changes made in taxation will undoubtedly prove a source of strength for the Commonwealth. Another general election, whatever the outcome, might have disorganised military policy and administration in a serious degree, and at least endangered that continuity which is-so vitally necessary. On the other hand, it is only fair to say that in the Prime Minister, Mr R. G. Menzies, th 3 Labour Party has been justified in recognising a statesman equal to his most difficult situation, for the Opposition Leader declared his Party in the main wei’e satisfied with the Government’s war measures. What, however, has also been affirmed is that the Government made a mistake in its claim that nothing except the Avar called for legislation in the meantime. In the event, the Budget, which was framed to exact from the poorer sections a relatively larger war contribution than that expected from the rich, has had to be so as to readjust this inequity in an appreciable degree. The income tax exemption, which the Government has proposed to loAvpr so far that it would reach incomes beloAA’ £3 weekly, is nOAA r being restored to a level more in keeping Avith that in Ncav Zealand. Old and invalid pensions, Avhich rising pi" ces have rendered inadequate, ane to be raised, and in addition the wives of all men hi the fighting services who have one or more children are to be paid a Aveekly alloAvanee of seven shillings each. It should be obvious lioaa’ these revisions will make for greater contentment and unity in the Avar effort, since the incidence of extreme poverty in such a crisis might induce disaffection, and in any case there is no real necessity for such poverty. Tine Avheat farmers, Avho have been reduced by drought to dire straits in many areas, can thank the Labour Party that a million pounds is be’ng afforded them for relief from the Budget. To ensure a budgetary balance, the ■ Government has been constrained to go in a direction which is undoubtedly the right one, namely, to the companies whose, incomes remain high or even increase during the Avar period. A guarantee has been obtained that the revenue budgeted for in that quarter is to b'3 increased, though the tax variations remain

to be devised by a Select Committee of Parliament. Another potential source of war finance is also to be explored, that of central bank credit. If the State is thereby enabled to augment credit without a serious incubus of interest, tile war bill will be to that extent modified. These changes, while they manifestly are the inspiration of. traditional Labour policy, are in all cases equitable and scientific. Finally, the Government, which is almost a minority one, is to have its wings clipped in the matter of initiative to the extent that it will have to submit to the War Council, before finally drafting in legislative form, all proposals which, as it is phrased, are “eapable of being discussed by the Council.” This will probably mean every major measure, but it will mean more than that, lit marks a step towards a War Cabinet, such as that in this country, so that it ought to be more satisfactory in the matter of national unity for all of the political parties. It is said that the concessions obtained for those in need represent an addition of four and a half millions to the Budget, but concerns like the Broken Hill Proprietary and the Colonial Sugar Company should find little difficulty in bridging that gap.