IN AUSTRALIA

Hokitika Guardian, 6 December 1940, Page 4

IN AUSTRALIA

FEDERAL LABOUR A

FORCES MANY CONCESSIONS.

(Australian Press Association).

CANBERRA, December 5. ' The Labour Caucus early this ing 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 decide 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 exemptino 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 allowmace of a million pounds to the wheat farmers for drought Telief. 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 the Council before, going to Parliament. Legislation to give effect to the Budget in its amendments now before the House to * be withdrawn. / 1 ' The coneesisons would add another £4,500,000 to the Budget. s

GOVERNMENT DECISION.

CANBERRA, December o. 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. • . .1- - ■ k i k 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 re-drafted 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 member for 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. 1 THE CRISIsInDED.

CANBERRA, December 5. The combined Labour Parties, at their meeting this afternoon, reconsidered the Budget compromise proposals, as cabled earlier, and in the ligh| of Mr Menzies’ threat to treat these as final and the question of another elec-.' tion in the event of their rejection: The Labour Leader, Mr J. Curtin, announed to-night Labour’s acceptance of the compromise terms, and stated his intention to withdraw his adverse amendment. Thus the crisis ended.