Second Reading Of Bill

Northern Advocate, 1 March 1939, Page 7

Second Reading Of Bill

LONDON, February 27

, The second reading of the Defence Loans Bill, giving effect to the financial resolution passed by the House of Commons last week, providing for the increase to £800,000,000. of borrowing powers for defence, was moved by the Chancellor of the Exchequer, Sir John Simon, in the House- of Commons today.

Sir John Simon added that his object in indicating fn advance of the Budget the proportions in which the total anticipated defence expenditure of £580,000,000 in the next financial year would be met from revenue and money on loan account, and his object in all his actions in connection with the defence loan programme, had

been to promote confidence by removing uncertainty. Referring to comment on the fact that he apparently proposed to. take only £230,000,000 from revenue for defence next year, which was less than in the current year, Sir John Simon said he could say still without anticipating his Budget statement, that the Budget for next year must reflect to a certain extent the Conditions of the past year. ]

Referring to the question of profit, Sir John Simon said the Treasury was deeply concerned to secure in every practicable way that good value was obtained for the vast outlay on armament. He had closely examined with hi's officials the general system by which profits on contracts were checked, and he was convinced it was a good system. Manufacturers Defended.:. In a tribute to the British aircraft industry for the manner in which it had expanded its undertaking to meet the demands of the Government air programme, Sir Kingsley Wood, Secretary for Air, mentioned . that - its prices had been shown to be in many cases lower than those of American firms. He deprecated the charges. Of profiteering against manufacturers which created bad feeling between employers and employed, and discburaged national service. ■ The Labour amendment was defeated by 232 votes to 117, and the bill was read a second time. s . .