FURTHER RISE NEXT YEAR

Dominion, Volume 34, Issue 81, 30 December 1940, Page 6

FURTHER RISE NEXT YEAR

Dominion’s War Budget STATEMENT BY PRIME MINISTER “The cost, of war today is tremendous. We till know by now what sacrifices are involved, and we are agreed that these must be borne proportionately. The war budget this year totalfe £37,500,000. It is being met in several ways, principally by increased taxation, by loans ami by the prudent use of credit. Next, year these war costs will show further increases,” said the Prime Minister, Mr. Fraser, in a statement last night.

“More and more production is needed if we are to bear this financial burden successfully, and it must be borne in mind also that increased production is needed at a time when more and more men are being absorbed into military service, and thus decreasing the supply of labour,” Mr. Fraser said. “It is obvious that greater effort on the part of those who remain at home is urgently required. We have surmounted the difficulties of the past year with creditable success. Comparing our experience with that of other countries, we must consider ourselves fortunate. During the coming year difficulties will inevitably increase. With every section of the community determined to take its full share of these burdens, there is uo need to be doubtful of the result. “There is in war-time always a tendency toward inflation. This must be controlled. There is an equal tendency for prices to rise. The prices of essential commodities, must be stabilized, unless real wages are to be left to lag behind the cost of living, thus leading to unwarranted burdens on wage-earners and people on fixed itt-> comes.”