LEASE-LEND ACT

Evening Post, Volume CXXXII, Issue 74, 24 September 1941, Page 9

LEASE-LEND ACT

DOMINION POLICY

QUESTION RAISED IN HOUSE

MR. NASH'S REPLY

The procedure to be followed in New Zealand under the Lease and Lend Act was the subject of an urgent question addressed by Mr. F. W. Doidge (National, Tauranga) in the House of Representatives this afternoon to the Minister of Finance (Mr. Nash). Mr. Doidge' asked whether, in view of the rumours rife throughout the commercial community, the Minister would define and clarify the position in regard to the New Zealand Government's policy under the Lease and Lend Act, and whether the Minister, in doing so, would particularly make clear the following points:— 1. Whether importers are to be permitted to continue with their private commercial arrangements, or whether all goods from the United States are to be brought into the couffiry by Government importation. 2. Whether goods imported under the Lease and Lend Bill, but intended for civil use, will be distributed through private firms or through a Government Department. 3. Whether the Minister will make it clear that there is no ground for the fear, expressed by chambers of commerce in New Zealand and private traders, that the Government intends using the Lease and Lend Act for furtherance of a policy of socialisation. UNDER CONSIDERATION. "The whole question of lease-lend procedure is under consideration," said Mr. Nash in reply, "and a full statement on the subject will be issued within a reasonably short time. In addition to supplying Britain .. with armaments and munitions, the U.S. Government is endeavouring to assist the Allied cause by making available to both the United Kingdom and to other Empire .Governments lease-lend supplies of other stores essential to the maintenance of the war effort. By this means the United States are relieving the pressure on the dollar resources of the British Commonwealth and are ensuring that the Commonwealth's war effort, together with the defence of this and other Dominions, is assisted to the maximum. "With regard to the specific questions raised: (1) In order that this generous assistance which the United States is making available may be given effect to the New Zealand Government has been requested by the United Kingdom Government to centralise imports of all major items which can be handled on a basis of co-ordinated requirements and which are necessary for the maintenance of the Dominion's war effort. In so far as goods may be eligible for supply by the United States on lease-lend terms, arrangements are being made for the import of such goods by the Government through the Ministry of Supply and licences for imports by private traders can accordingly not be granted in the meantime The purchase of other goods may continue in so far as they are available and essential to the maintenance of the war effort or to the civil life of the community on a wartime basis. But safeguards are still required to ensure the minimum charge on dollar funds. NO PROFIT ALLOWED. "(2) Where goods essential to the national effort are procured by the Ministry of Supply under the leaselend procedure, the Government is required to give an assurance that such goods will be distributed to consumers or the users in New Zealand without profit. My colleague, the Minister of Supply, has arrangements under consideration to ensure distribution within New Zealand of all such supplies through existing economic channels on a basis to be agreed between the Government and distributors. "(3) The third question represents the usual political propaganur with which certain organisations' associate themselves whenever the Government, in its determination to extend its war effort to the maximum, has to follow the procedure that is most economic and least wasteful. With this qualification it is proposed to use existing, trading channels to the fullest possible extent. "The Government's policy In connection with lease-lend supplies is dictated solely by its desire to comply strictly with the terms of the Act and to co-operate to the full in whatever procedure is mutually | agreed upon by the various Governments concerned."