BUDGET CRISIS

Grey River Argus, 6 December 1940, Page 7

BUDGET CRISIS

FEDERAL LABOUR Forces Many Concessions [Aus. & N.Z. Cable Assn.] CANBERRA, December 5- _ The Labour Caucus early this morning postponed a decision on .Budget compromise (proposals, submitted by the Government, until further demands have been made on the Ministry. Mr Curtin indicated that the party decided to endeavour to obtain further concessions as the price of withdrawal of the Opposition s amendments.

Concessions which the Government is prepared to make are as follows. Raising the Federal income tax exemption from £l5O to £2OO. Domestic allowance of seven shillings a week for wives, with a child, or children, of all men in the fighting services. The Commonwealth to make an allowance of a million pounds to the wheat farmers for drought relief. Standard rates for old age and invalid pensions to be raised one shilling to one guinea a week. Wartime companies’ tax to be subject to investigation by a select committee. The amount budgeted for from 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Legislation to give effect to the Budget in its amended form to be passed and the amendments now before the House to be withdrawn.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.

GOVERNMENT DECISION TO REDRAFT BUDGET (Received December 5, 11.20 p.m.) CANBERRA, December 5. The main development of the Commonwealth Budget crisis to-day was that the Government came to a determination to make no further compromise to the Labour Party. There was a joint meeting of the two Government parties, who endorsed the Cabinet’s decision. The House of Representatives, sat for only two minutes to-day. It then adjourned until to-night. This was to allow .members to consider the position. The Prime Minister, Mr R. G. Menzies, made a statement. He emphasised the need for continuity in war administration. The Government’s desire was 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 (already cabled), and it would be again submitted to Parliament.

The Victorian Independent member, Mr Wilson has not yet disclosed his attitude on'the Budget. The new membei’ fo.' Kalgoorlie, Mr H. V. Johnson, a Labourite, has won the seat with an absolute majority of 3844. He attended Parliament for the first time yesterday, but he was not allowed to take his seat until the return of the writs.

Crisis Ended

LABOUR PARTY TO WITHDRAW AMENDMENT. (Received December 6., 12.45 a.m.) CANBERRA, December 5. The combined Labour Parties, at their meeting this afternoon, reconsidered the Budget compromise proposals, as cabled earlier, and in jhe light of Mr Menzies’ threatjto treat these as final and the question of another election in the event of their rejection. The Labour Leader, Mr J. Curtin announced to-night Labour's acceptance of the compromise terms, and stated his intention to withdraw his adverse amendment. Thus the crisis ended.

Australians Warships

WANTED BACK HOME CANBERRA, December 5. ’ Australian warships should be brought back to home waters to convoy ships carrying Australian produce to Britain, said Senator Kane, in the Senate. Eighty thousand tons of shipping had already been lost, and if that rate of destruction continued Australia’s business of feeding the people of England would stop. WASHINGTON, December 4. Mr Casey, Australian . Minister, today, inspected Pratt Whitney’s Hartford (Connecticut) works. He lunched informally with Hartford business men. In the afternoon, he inspected the Colt firearms and other war-sup-ply plants. Mr Casey, in a statement to the Press, said that the New England States, particularly Hartford, were most important for the Australian war effort. “We are dealing with 20 firms manufacturing machine-tools in New England. The rate of production of weapons and munitions is increasing. The range of Australia’s war production is dependent on deliveries of these machine-tools. We know that you have done your best for us in respect to early deliveries, and we know that you- will not misunderstand when I say that we are inevitably very anxious • for better and better deliveries, on which the lives of thousands of my fellowcountrymen are dependent.” Mr Casey outlined the Australian development of war industries. He will later dine and speak at the Hartford Twentieth Century Club, made up as 200 leaders of big industries.