WAR EXPENDITURE

Gisborne Herald, Volume LXVIII, Issue 20634, 14 August 1941, Page 4

WAR EXPENDITURE

EVEN BALANCE TAXATION AND LOANS "NO DOMESTIC SACRIFICE" (Parliamentary Reporter.) WELLINGTON, this day. New Zealand’s war expenditure has so far been met by a fairly even balance of taxation and loans. This was the opinion expressed by the Hon. A. Hamilton (Nat.. Wallace), a member of the War Cabinet, when discussing war expenses in the House of Representatives yesterday. He also produced details of the war expenditure to July 31. Although we were conducting a war which was determined and dangerous, said Mr. Hamilton, we seemed determined also to conduct it without domestic sacrifice. This was not the spirit of the Old Country, whose Prime Minister, Mr. Winston Churchill, had said he had nothing to offer but toil and sweat, blood and tears. Mr. Hamilton added he did not wish to emphasise these aspects, but he was bound to say that New Zealand entered the war with a good big social load. To this was added the war burden. Now the present bill increased social benefits and war borrowing from £40,000.000 to £80,000,000. Everybody seemed to be pleased, and it was a truly wonderful country if this could be done. Synopsis of Expenses How was the war expenses account getting on? asked Mr. J-lamilton. He quoted former figures showing tinposition at the end of the first and second years of the war, pointing out that £kmp last_year the war expenses account carried forward a cash balance totalling £4,428,548. Members of the War Cabinet received monthly statements o{ war expenses, and it would not be out of place to give the House a synopsis of the position. At July 31 last, only a few weeks ago, the total receipts from the commencement of the account in September, 1939, to this date were: From 1 oarmoney, £24,612,287, of which £8,176.588 was borrowed overseas and £16,435.249 borrowed in New Zealand. The amount received by taxation was £24,517,550. with other receipts amounting to £3,400,000. The total expenditure to date was just about £47,000.000, but over £50.000,000 of this was sinking fund. It 1 therefore would be seen that the receipts were pretty evenly balanced between loan money and taxation. The AuditorGeneral had made the point that the cash balance of £4,428,548 was insufficient to, meet the commitments already incurred by the Imperial Government on our account and which had not yet come to charge. Good Sinking Fund

So far as this statement was concerned it might be legitimate criticism, but, asked Mr. Hamilton, was it correct? The public accounts as a rule recorded only the receipts and payments, without showing outstanding assets or liabilities. Much of this expenditure had been on defence equipment in New Zealand—valuable material' and, if necessary, realisable assets after the war. There had been provided £3,647,999 as a sinking .fund and, as this was now about 17 per cent, it was a good provision.. Although the war figures were published monthly, he had not seen severe criticism, though the method of financing the war would always bear critical examination.

The Minister of Supply, .the Hon. D. G. Sullivan: Did not your benchmate ask for their publication? The Leader of the Opposition, Mr. S. G. Holland: We want a lot more information than this.