P.M. CONFIRMS DEFENCE CUTS

Press, Volume CVII, Issue 31378, 25 May 1967, Page 1

P.M. CONFIRMS DEFENCE CUTS

No Details Yet About Aircraft Or Frigate (New Zealand Press Association) WELLINGTON, May 24. The Prime Minister (Mr Holyoake) said tonight that defence expenditure would be cut this financial year, but he declined to say whether this would affect the ordering of replacement aircraft for the R.N.Z A.F.’s Canberra bombers or the Navy’s proposed fourth frigate.

He told a press conference tonight that the £4B million defence estimate for the last financial year would be “quite substantially underspent” because of the country’s economic position.

Asked if the Government proposed reducing the defence vote during the current financial year, Mr Holyoake replied: “Like many other things it is a logical guess to say that it would be less.”

Commenting on today’s meeting of the Cabinet Defence Committee to consider defence expenditure, the Prime Minister said the committee had set priorities and would report its recommendations to the full Cabinet on Monday.

Asked when a defence outline could be expected, he said the matter had not been settled. It could take the form of a statement nearer the Budget, or details of defence expenditure could be released in the text of the Budget on June 22. White Paper The 1966 defence White Paper said the Government proposed to take the following steps to give effect to its policy of maintaining and improving the effectiveness of the armed forces:— Purchase a fourth frigate for delivery to the Navy in 1970-71 (estimated cost £9 million). Replace the Air Force’s Canberra bombers with strike aircraft in time for the replacements to be operational by 1970 (estimated cost up to £l2 million). Purchase Army field force

equipment (valued at £2.6 million). Order up to six light fixedwing aircraft for army communications and support tasks (estimated cost £250,000). Asked if the Government

bad to purchase a fourth frigate, the Prime Minister said the lease of the frigate Blackpool from the Royal Navy could be adjusted. Mr Holyoake declined to say whether the Government would have to order Canberra replacements this year—in time to meet the White Paper requirement that they be operational by 1970. But he agreed that the Canberras would have to be withdrawn in 1970 because of their age.