MORE DEMANDS

Wairarapa Times-Age, 6 December 1940, Page 5

MORE DEMANDS

MADE ON THE FEDERAL MINISTRY ATTITUDE OF LABOUR OPPOSITION SUGGESTED BUDGET CONCESSIONS. NO FURTHER COMPROMISE. (By Telegraph—Press Association—Copyright) CANBERRA, December 5. A Labour caucus, which was held early this morning, postponed its decision on proposals submitted by the Government for a compromise on the Budget till further demands have been made on the Ministry. The Leader of the Opposition, Mr Curtin, indicated that the party had decided to endeavour to obtain further concessions as the price of a withdrawal of the Opposition’s amendment. The concessions which the Government is prepared to make are:— Raising of the Federal income tax exemption from £l5O to £2OO. A domestic allowance of 7s a week for the wives with a child of children of all men in the fighting services. The Commonwealth to make an allowance of £1,000,000 to the wheat farmers for drought relief. The standard rates for old age and invalid pensions to be raised by Is to £1 Is a week.

The war time companies tax to be the subject of an investigation by a select committee and 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Legislation to give effect to the Budget in its amended form to be passed and the amendments now before the House to be withdrawn.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 concession would add another £4,500,000 to the Budget. The main development of the Budget crisis later today was the Government’s 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 today and adjourned till tonight to allow members to consider the position. Mr Menzies made a statement emphasising the need for continuity of the war administration and the Government’s desire'to dispose of this crisis on amicable and fair terms. He indicated that the Budget would be redrafted on the lines of the compromise and 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, Mi H. V.-Johnson (Labour), who won with an absolute majority of 3844, attended Parliament for the first time yesterday but was not allowed to take his seat till the return of the writs. CRISIS ENDED MR CURTIN’S ANNOUNCEMENT. CANBERRA, December 5. The combined (Labour Parties at a meeting this afternoon reconsidered the Budget compromise proposals and, in the light of Mr Menzies’ threat to treat these as final and the danger of another election 'in the event of their rejection, Mr Curtin announced tonight Labour’s acceptance of the compromise terms and his intention to withdraw his i /adverse amendment. Thus the crisis is ended.