SPLIT ON BUDGET

Wairarapa Times-Age, 8 September 1941, Page 5

SPLIT ON BUDGET

IN AUSTRALIAN CABINET GOVERNMENT PARTIES TO MEET. LABOUR GETTING READY FOR ELECTION. (Ry Telegraph—Press Association—Copyright) CANBERRA. September 7. The attempt by the Federal Prime Minister (Mr A. W. Fadden) to appease Labour with a compromise Budget is vigorously opposed by a section of the Cabinet. This section, led by Mr Menzies, claims that Mr Fadden’s proposal to raise money by credit expansion rather than taxation would lead to a spiral of rising prices and inflation. A showdown on the Budget oroposals is expected at a meeting of the Government parties shortly before the Budget session. Labour circles state that Mr Curtin has decided on an election on the Budget in the belief that it is the only means of resolving the political position. Mr Curtin advised his party supporters to prepare for this eventuality. This confirms the view held in some Ministerial circles that even the appeasement Budget will not prevent the inevitable boil-over. Money will be provided in the Budget for the first instalment of a housing scheme for returned soldiers of this war. Announcing this, the Minister of Repatriation (Mr Collett) said the scheme would function immediately the money, labour and material were available. The scheme would allow re-, turned men already married or intending marriage to have the choice of site, style of house and cost according to their means and taste. Mr Collett also stated that ninetenths of the returned men from this war not undergoing hospital treatment had been placed in jobs. Some had returned to their former civil work, while others had been placed in munitions and miscellaneous new work.