DEFENCE EXPENDITURE

Greymouth Evening Star, 14 July 1939, Page 7

DEFENCE EXPENDITURE

BRITAIN’S ENORMOUS TOTAL

£730,000,000 FOR THIS YEAR

[BRITISH OFFICIAL -WIRELESS.]

(Recd. July 14, 11.15 a.m.) RUGBY, July 13

The Finance Bill, which embodies Sir John Simon’s budget proposals for the raising of £916,750,000 of the revenue of the current financial year, passed its third reading in the Commons, by 206 votes to 141. ' Sir John Simon, winding up the debate for the Government, referred to the supplementary estimates issued in the past three days, which brought the total expenditure on defence for the year to £730,000,000 and, in consequence, he forecast that the amount which would have to be found from borrowed moneys would not be far short of £500,000,000. He added: “At an appropriate time, it will be necessary to ask the investor, great and small, to contribute on a most-abun-dant and generous scale out of his savings and resources, to the new defence loan.”

The total expenditure for the current year, including that from borrowed moneys, would not be less than £1,400,000,000 and, commenting on this gigantic figure, Sir John Simon expressed the view that the reason of the quiet reception which the country had given to that prospect was because there was among the whole people a determination to do what was necessary for the liberty and safety of their country. The additional defence borrowing will be met under the earlier authority to borrow £800,000,000, of which only £200,000,000 has hitherto been used. i SUPPLEMENTARY ESTIMATES. LONDON, July 13. Following are Supplementary Estimates announced by the Government: — NPw Ministry of Supply: £144,350,000.

Air Force: £40,000,000. Ordinary receipts will yield £98,938,00'0 for the Ministry of Supply. The remainder is bein'© raised by way of loans. The expenditure includes the following:— Purchase of clothing and general stores: ( £33,450,000. Munitions: £30,303,000. Mechanised transport: £20,817,000. Raw materials for reserve: £12,610,000. The headquarters staff will require £1,686,000, including the Minister of Supply, whose salary is to be £5OOO a year, and a Parliamentary Undersecretary, with a salary of £lOOO a year. For a research, design and inspection section, there is £3,705,000 appropriated. This section will require a staff Of 5232. The Air Force supplementary estimate, of £40,000,000 -will be raised by, loans. The moqey will be used largely in order to provide an increase of 32,000 in the personnel of the Air Force to 150,000' men. There will also be the cost of the permanent manning of the balloon barrage squadrons, as well as provision for extra overseas bomber squadrons. The Air Council explains l that the money is needed for supplies which are now being delivered more rapidly than had been expected. On the royal ordnance factories, the expenditure will be £33,547,000. The control of this is being transferred to the Ministry of Supply. Provision is made for the construction of twelve new factories at a cost of £17,766,000.

U.S. AVIATION BASES

EIGHT-HOUR DAY SUSPENDED

[BY CABLE —PRESS ASSN. —COPYRIGHT.]

(Recd. July 14, 1 p.m.). WASHINGTON, July 13.

Mr. Roosevelt has decreed that, since the establishment of naval aviation bases at Palmyra, Johnson and Midway Islands, in the Pacific, and at Kodiak and Sitka, in Alaska, must be completed at the earliest possible date; the eight-hour working day is suspended for these operations, which is otherwise required by law on all Government contract construction.