£40,000,000 DEBIT

Auckland Star, Volume LXXV, Issue 59, 10 March 1944, Page 6

£40,000,000 DEBIT

UNDER LEND-LEASE

U.S. DEMAND FOR FOOD

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. To suggest that New Zealand could get a hundred and one commodities from the United States for civilians and merely say "Thank you" was preposterous, declared Mr. Bodkin (Nat., Central Otago) in the House of Representatives to-day. He knew that the Minister of Finance, Mr. Nash, had stated that there was no question of payment and had also admitted, when pressed, that there was a case for consideration ill connection with the low prices of commodities which New Zealand supplied to lend-lease. "What is the position to-day?" asked Mr. Bodkin. "Nobody knows, except that we have reason to believe that America has rightly applied a check and calls upon us to pay for petrol supplied to civilians and for other goods which have no connection with the war effort."

The speaker suggested that New Zealand had to face a deficit of about £40,000,000 under the lend-lease scheme, and it would have to work off this "dead horse" because our own needs from America would now be very small, while the demands of the 'United States for food were increasing, and it would be unthinkable to refuse them. He contended that New Zealand goods were being supplied at small cost, though farmers knew that American machinery which they could once buy for £25 was now charged at £80. He understood that one-third of the apple crop was required by our Allies. This would be taken by the Government at below cost, though America was supplying nothing of this kind under lend-lease for less than 12/6 a case. Negotiations were proceeding regarding prices for New Zealand farm products, and nobody would suggest, added Mr. Bodkin, that either Britain or the Allies would quibble, about a small increase, in view of the heavy increases in the cost of goods supplied to the Dominion from the United States and Britain.