POLITICAL CRISIS

New Zealand Herald, Volume 80, Issue 24531, 13 March 1943, Page 7

POLITICAL CRISIS

AUSTRALIAN OUTLOOK HOUSE AND SENATE TAX AND WELFARE BILLS (Reed, 0.30 p.m.) CANBERRA, March 32 A 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 a clause making the operation of the Income Tax Assessment Bill contingent on the operation of the National Welfare (Social Security) Bill. The Senate objection to the clause is that it unconstitutionally binds them to acceptance of the National "Welfare Bill. The Senate regards the linking of the welfare; bill with a tax bill raising funds for war as "subterfuge and election window-dressing." The Government offered not to complete the passage of the tax bill 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. J. Curtin, stated earlier that he would make retention of the disputed clause in the tax bill a vital issue and that the Government would be prepared to fight an election on the issue. Fight to Last Ditch Alter the Senate Opposition to-day blocked a Government attempt to avoid an immediate show-down and rejected by 15 votes to l.'S a Government demand that if leave the contentious clause in the tax bill, the Senate.-Op-position Leader, Mr. MeLeay, said: •'We will light 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 of 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 show-down between the House of Representatives and the Senate, with the former insisting that the Senate lias no right to press requests on money 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 Mr. Curtin's earlier statement making the 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 Gov-ernor-General for assent. Angry Ministers 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 of 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's 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 Representatives went to the country immediately the Government would have to fight a second election for the Senate before the year was out.

JAPANESE AIR BASES MOVES IN SOUTH CHINA. PLAN TO FOIL ALLIES CHUNGKING. March 12 "The Japanese are establishing powerful air bases at Kwangchowan, on the southern tip of China, for operations against Allied aerodromes established for the bombardment of Japan," said a Chinese Army spokesman. He added that fighting was continuing in Central China, where the Japanese had thrown eight columns, aggregating 20.000 men. across the Yangtse River between Kiangling. near Shasi. and Yochow. The spokesman said the Japanese were -using 55,000 troops against the Chinese in the Burma-Yunnan border region. By capturing point after point in the area north-west of Tenyyueli, the Chinese had blunted the northern claw of the pincer which the Japanese threw across the Yunnan border from the Mvitkyina base in Burma. Chinese troops have captured two places on the west bank of the Salween River. Earlier reports stated that Japanese forces driving north had been driven back. BURMA INFILTRATION INDIAN TROOPS ISOLATED (Recti. a.m.) LONDON, March 12 The correspondent of the Daily Mail at Eastern Army headquarters in India reports that the Japanese infiltrated in the Rathedaung area, cutting off Indian troops, who are being supplied hv air. American bombers yesterday dropped 12 tons of bombs on a key railway bridge north of Rangoon, scoring five direct hits. This bridge is on the only railway link between Rangoon and northern Burma. AMERICAN OPERATIONS ENEMY BASES BOMBED WASHINGTON. March 11 In the North . Pacific : on Tuesday, states a United States Navy Depart-' ment communique, a force of Mitchell medium bombers and Liberator heavy bombers, with Lightnings for escort, bombed Japanese positions at Kiska. Hits were observed on the camp area. All of the American planes returned. In the South Pacific on Wednesday Liberators carried out minor bombing attacks on Japanese positions at Kahili, in Bougainville, and Alunda and Vila, in the central Solomons. The results were not observed. Later in the day a large force of Avenger torpedo-bombers, Dauntless dive-bombers and Wildcat fighters attacked Vila and the southern coast of Kolombangara Island. Several large tires were started. The same afternoon 10 enemy bombers, with an escort of 12 Zeros, was intercepted north-west of Guadalcanal - . One bomber and three Zeros were shot down. No American planes were lost. BRITISH SUBMARINE LOST LONDON. March 11 The Admiralty announces that submarine P3ll is overdue and must be presumed lost, The P3ll was commanded by Commander R. O. Cay ley. D.S.O. and two bars, who was one of the most outstanding captains of the present war. He sank 69,000 tons of Axis shipping in 15 months and also torpedoed an Italian cruiser.