Senate Holds Up Labour Bill

Manawatu Times, Volume 68, Issue 61, 13 March 1943, Page 5

Senate Holds Up Labour Bill

(By Telegraph—Press Assn.—Copyright.) Received Friday, 10.15 p.m. CANBERRA, Mar. 12. The deadlock between the House of Representatives and the Senate on the Bill to impose £40,000,000 additional income taxation appears to have precipitated a rapid political crisis which may possibly provoke an early election. The cause of the dispute is the clause making the operation of the Tax Bill contingent on the operation of the National Welfare (Social Security) Bill. The Senate's objection to a clause is that it unconstitutionally binds them to the acceptance of the Welfare Bill. The Senate regards the linking of the Welfare Bill with the Tax Bill raising funds for the war as “a subterfuge and election window-dressing.” The Government offered not to complete the passage of taxation until the Welfare Bill had been considered by the Senate, but the offer was not acceptable to Opposition Senators, who hold a majority of two. The Prime Minister (Mr. Curtin) stated earlier that he would make the retention of the disputed clause in the Tax BtTl a vital issue. After the Senate Opposition to-day blocked the Government attempt to avoid an immediate showdown, and rejected by 15 votes to 13 the Government demand that it leave the contentious clause in the Tax Bill, the Senate Opposition leader (Senator MeLeay) declared: “We will fight to the last ditch.’* The alternatives now facing the Curtin Government include: (1) An election on the ground that Parliament is unworkable; (2) the presentation ot a new Tax Bill removing the proposed taxation on lower incomes in return for which taxpayers in the low income groups were to receive social benefits; (3) a showdown between the House of Representatives and the Senate wit I the former insisting that the Senate has no right to press requests on monev bills. Government acceptance of the Senate’s request that the disputed clause be deleted is possible, but it would be a difficult and bitter pill in view of Mi. Curtin’s earlier statement making tho clause a vital issue. By following the third course, the Government would ignore the Senate’s demands and present the Bill as it stands to the GovernorGeneral for assent. The House of Representatives must now consider the Tax Bill for the third time. Angry ministers after the Senate vote are reported to have declared in the lobby that one solution would be to withdraw the Bill, completely redrafting it without taxing the lower income groups and then blame the Opposition for the delay in the introduction of the National Welfare scheme. However, no official indication has yet been given of the attitude to be adopted by the Government. Political correspondents point out that while the development is technically a_ deadlock between the two Houses t>f Parliament, actually it is a fight between the Government and the Opposition. No further major developments are likely now until the House of Representatives again receives the Bill next Tuesday. The Sydney Sun correspondent says a factor operating against an early election is that the date for the double dissolution of both the Senate and the House of Representatives has expired. If the House of went to the country immediately,the Government would have to fight a second election for the Senate before the year was out.