IN THE BALANCE

Otago Daily Times, Issue 24474, 6 December 1940, Page 8

IN THE BALANCE

GOVERNMENT'S FATE AUSTRALIAN BUDGET COMPROMISE PROBABLE CANBERRA, Dec. 4. Political tension is at its highest peak. Speculation is rife concerning the Menzies Government's fate Politicians were • smarting under newspaper criticism when the Budget debate was continued in the House of Representatives this afternoon and carried on for a short time when the House unexpectedly adjourned for the night so as to allow the various parties to hold meetings to-night to find a basis of compromise on the taxation proposals. The debate will be resumed tomorrow:

Eleventh-houi proposals on the Budget for a compromise were made by the Federal Ministry at a meeting earlier to-day of the War Advisory Council. Strict secrecy with regard to this was observed by the leaders of the parties.

LABOUR'S AMENDMENT

THE PRICE OF WITHDRAWAL

CANBERRA, Dec 5 (Received Dec. 5, at 7 p.m.) The Labour caucus early this morning postponed its decision on the Budget compromise proposals submitted by the.,Government until further demands had been made on the Ministry. The Leader. Mr. J. Curtin, indicated that the-party had decided to endeavour to obtain further concessions as the price of withdrawal of the Opposition's amendment. Concessions which the Government is prepared to make are as follow: The raising of the Federal income tax exemption from £l5O to £200; a domestic allowance of 7s per week for wives with one child or children of all men in the fighting services; the Commonwealth to make an allowance of £1,000,000 to wheat farmers for drought relief; the standard rates for old age and invalid pensions to be raised Is to 21s per week; the wartime companies' tax to be subject to an 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legislation to give effect to the Budget in its amended form-to be passed and amendments now before the House to be withdrawn The concessions would add another £4,500,000 to the Budget. GOVERNMENT'S ATTITUDE NO FURTHER COMPROMISE CANBERRA, Dec. 5. (Received Dec. 6, at 0.15 a.m.) The main development of the Budget crisis to-day was the Government determination to make no further compromise to Labour. A joint meeting of the Government parties endorsed the Cabinet's decision. The House of Representatives sat for only two minutes to-day, and adjourned until to-night to allow members to consider the position. Mr Menzies made a statement emphasising the need for continuity of war administratio i and the Government's desire to dispose of this crisis on amicable and iair termo. He indicated that the Budget would he redrafted on the lines of yesterday's compromise and igain submitted to Parliament. The Victorian Independent member, Mr A. Wilson, has not yet disclosed his attitude on the Budget. The new member for Kalgoorlie, Mr H.-V, Johnson (Lab:), who won with an absolute majority of 3844, attended Parliament for the first time yesterday, but was not allowed to take his seat until the return of the writs. CRISIS AVOIDED AMENDMENT WITHDRAWN CANBERRA, Dec. 5. (Received Dec. 6, at 2 a.m.) The combined Labour parties, at a meeting this afternoon, reconsidered the Budget compromise proposals, and in the light of the threat by Mr Menzies to treat these as final and the danger of another election in the event jf their rejection, Mr Curtin announced tonight Labour's acceptance of the compromise terms and his intention to withdraw his adverse amendment, thus the crisis has ended