WAR FUNDS

Ellesmere Guardian, Volume LX, Issue 79, 6 October 1939, Page 5

WAR FUNDS

STRICT GOVERNMENT CONTROL,

MINISTER'S STATEMENT ON METHOD

A statement on war funds and the method of control provided by the | Government has been made in the House of Representatives by the Hon. Minister of Internal Affairs. In the course of this statement the Hon. Mr Parry announced that regulations had been gazetted' to control war j fund activities during the present j war. ' The War Funds Act was passed in October, 1915, to control a state of' affairs that had started 14 months earlier, on the outbreak of war, he went on to say. In essence it may be likened to a system of registration and audit. There was nothing in the nature of control in the sense of statutory prohibition or restriction of the establishment of war funds or patriotic activities. The term "war fund" was defined, but it was open to any section of the community to establish one. There was compulsory registration of war funds and the societies in charge of them, and machinery was provided for exerting such measure of control as was> possible under the circumstances, but at no time was there any really effective control over methods of raising funds or overlapping in effort.

The inevitable results were nearly 600 separate war funds and just under 1000 separate collecting agencies, together with not only wasteful and extravagant competition and expense in collecting funds but actual misappropriations, as well as wasteful expenditure. In short, it can truly be said that there was no co-ordina-tion of objectives or effort, that large sums were lost to the funds, that public generosity was unduly exploited, and that the public from beginning to end of the war were subjected to an unending barrage of collecting with no real guarantee, in many cases, that moneys given would be used to the best advantage.

The present regulations have been drafted as an effort to avoid the mistakes of the last war. In place of nearly 600 funds of lalst time it is proposed to set up no more than 12, namely, a National Patriotic Fund and eleven provincial funds. In place of a series of separate funds for separate objects, it is proposed to substitute what may be called twelve community chests, each embracing in its objects, if necessary, the whole range of approved purposes. Out of each such community chest payments will be made as required for each and all of such purposes. It will thus be possible~to regulate expenditure in a way that was impossible during the last war. The power to approve purposes is vested in the Minister of Internal Affairs, thus making it possible to withhold approval of any purpose until the need for it arises.

The community chest idea necessarily involves the power to collect being vested in one body instead of the hundreds that appealed to the public in the last war. The proposal' in the regulations is to divide New Zealand in provincial patriotic districts and for thisi purpose the provincial districts under the. New Zealand Centennial Act, 1938, are declared to be the provincial districts under the regulations with the same subdivisionS-^-zories, sub-zones and local districts. In each province the Provincial Centennial Council is also to be the Patriotic Council and the various zone and other centennial controlling committees will also function as patriotic controlling committees! under the Provincial Coutir cil which in every case is a body consisting of representatives of the various subdivisions. The Provincial Council will in each proyince be the body primarily vested with authority to appoint and control the activities of authorised collectors but may delegate its powers to controlling committees which may in turn delegate to the mayor or chairman of any local authority within its area. All authorised collectors will, of course, "collect for the provincial fund. The provincial council will be the

authority controlling expenditure of the provincial fund. To enable such expenditure to be made to the best advantage "the provincial council is empowered to appoint as its agent any society or other body of persons which by the nature of its objects and the machinery of its organisation is specially qualified to expend money for any particular purpose. Under this, bodies like the R.S.A., V.M.C.A., Red Crqss, Salvation Army, etc.," can profitably be used as spending agents and for distribution of comforts and conveniences. In the same way these bodies can be used for collecting moneys for the community chest.

The National Fund will be one to which moneys will be contributed both by the people g-enerally and by provincial councils for purposes for which expenditure can best be made by a national body. In particular, all moneys for expenditure overseas must be paid into the National Fund, which is to be vested in and controlled by a special incorporated board with the Governor-General as chairman, the other members to be appointed by the minister. Subject of course to the regulations it will be an independent body.

A National Advisory Council is to be set up to assist the Minister in the administration of the regulations, with wide powers, by means of which it should) be possible to control the collection of funds in such a way as to avoid the extravagance and waste. The regulations, however, give the Minister power to grant exemptions from their application, subject to such conditions as he may impose and a first list of exemptions will be gazetted immediately. Contained in that list will be:— An exemption allowing the carrying on of the spiritual work and ministrations of any religious denomination amongst members of the armed forced by the authorised ministers and officers of that denomination so far as funds for such purpose are raised by collection made and sought exclusively from the members and adherents of that denomination. It must be noted that this

exemption will cover only spiritual , work and ministrations and not what < may best be termed the social work of the churches amongst, the fofces< An exemption, subject to certain definite safeguards, in favour of functions or entertainments m honour of any member or members of the forces—for instance, farewell gatherings in their own home towns to men going into camp or leaving New Zealand for service overseas. An exemption to allow the collection of, moneys and other gifts to soldiers among their fellow members . of clubs, or other institutions; or their fellow employees or officers in any business or service, and community gifts from residents in their home towns. It will be seen from these exemptions that the regulations have been very strictly drawn. It is the considered opinion of the Government that such a course, namely, very strict control with a generous power of exemption, which can be exercised from time to time as occasion requires, is in every way preferable, in the interests of all concerned, to regulations framed in such general terms as to leave loopholes for undesirable practices-. The power of exemption is so framed as to allow the Minister to delegate that power subject to safeguarding conditions, to any provincial council or controlling committee." In this way reasonable exemptions, impossible for the moment to visualise, can be expeditiously granted. The further power of the minister to revoke any such delegation will be an adequate, safeguard against abuse.

Two particular matters require special mention:—

Centennial funds no longer required for the purposes' for which they were raised may, with the minister's consent, be diverted to approved patriotic purposes of the war.

With regard to moneys already raised and goods donated for the present war, provision is made for their being held in trust by those who have collected them for disposal for such approved patriotic purposes as. the appropriate provincial councils direct.