IN DEFENCE

Auckland Star, Volume LXXIII, Issue 106, 7 May 1942, Page 6

IN DEFENCE

GOVERNMENT POLICY

SUPPLY MINISTER REPLIES

(By Telegraph.— Parliamentary Reporter)

WELLINGTON, this day

Replying to Mr. Holland s criticism that the estimates of war expenditure had not been submitted to the War Cabinet, the Minister of Supply, Mr. Sullivan, said that was only partially true. The majority of items that appeared in the Defence Estimates had already probably been approved by the War Cabinet and every other item would go to the War Cabinet for its approval.

The Minister said he personally did not think there would have been the slightest difficulty about submitting the estimates as a whoU* to the War Cabinet if there had been any indication that that was desired by members of the Opposition.

Dealing with inflation, the Minister declared that he did not think that any country in the British Commonwealth, and probably outside it, had been more successful than New Zealand in keeping down the tendency to inflation and in keeping prices on an even keel.

New Zealand was also in the best position in regard to food group increases, and that, he thought, was undoubtedly due to the Government's purchase at fixed prices of most of the farm products.

Referring to the proposed additional sales tax, Mr. Sullivan said a long list of items required in the homes of workers were entirely free from increase. From the time the Government had accepted the principles of stabilisation, none of the items in the stabilised list of goods had been permitted to rise in price. When it was necessary to give larger recovery to sellers of goods on the stabilised list, the Government found a subsidy, thus preventing a rise in the price of goods to the consumer.

The Minister gave some figures relating to factory production for war purposes, and declared that it must be a matter of pride to the country that all representations which had come from New Zealand soldiers and other observers overseas, paid tribute to the excellence of New Zealand battledress and footwear. Workers in all phases of war production had done an enthusiastic job, working overtime on every occasion rea.uired.