War Expenditures Are Higher By £33,849,000

Northern Advocate, 21 August 1945, Page 2

War Expenditures Are Higher By £33,849,000

(Special). WELLINGTON, This Day, “There will be no scope for adjustment of taxation during this financial year,” stated the Minister for Finance (Hon. W. Nash), when announcing the revised estimates of New Zealand’s war expenditure consequent on the conclusion of peace.

Expenditure in the War Expenses Account as shown in the Budget totalled £105,400,000, but in the Minister's revised estimates the total has reached £ 139,249,000. The first reference to the cost of gratuities, £18,000,9CO, is made by the Minister, while another new item in his revised estimates is £5,000,000 for deferred pay.

The Minister added that the Government fully realised the necessity for reviewing the taxation position at the earliest possible opportunity. This was necessary so that the taxpayer might be relieved of some of the financial burdens which he had borne during the war period and also so that industry generally might be given that scope and impetus to reorganisation and development so essential to provide worthwhile permanent employment in industry for the men and women coming out of the armed forces. * Demobilisation Costs.

The revised estimates have been prepared up to the probable date of demobilisation, which should be early next year, dependent on the availability of shipping and other important factors, said Mr Nash. After their return to New Zealand, the men would be entitled to draw balances of pay and those who quali - fied would be given three months’ leave on full pay and allowances. Provision also had to be made for muftj allowances, deferred pay and war gratuities. Allowing for these factors, the Minister stated that his revised estimates of expenditure in the W.ar Expenses Account were as follows: —

Most of the foregoing headings were self-explanatory, said the Minister, but he pointed out in connection with' the item of war and other stores that there was no question of continuing the importation or manufacture of such stores, but provision had to be made for meeting' charges in respect of goods already supplied or shipped. A large portion of the provision related to stores of lend-lease origin. No Final Figure.

The expenditure contemplated under reverse lend-lease, being the assistance given to the Dominion’s American Allies, had been stated tentatively at £22,000,000, under the amended proposals, showing a reduction of £2,000,000 against the Budget estimate. It was not possible at this stage to fix any final figure under this heading, as the amount which would be required for this purpose would depend on the result of reciprocal policy negotiations between the Governments concerned. In the case of gratuities, estimated to cost £18.000,000, while the procedure was at present being .worked out.it was necessary to make financial provision for the amount involved. The Minister concluded that from the factors mentioned it would be appreciated that it was ‘'difficult to estimate how much of the £139,249,000 would come to charge during this financial year, but any amount not expended by March 31, 1946, would come to charge early in the next financial year. Now that the war had ended, the Government was anxious to have all matters completed as soon as possible.

Budget Budget Estimates Estimates £ £ Pav and allowance^ 35.200,000 38.972 000 Accom., food, clothing 5,500,000 5.952.000 War & other stores 21.17C.OCO 22.029.000 Medical and education services 640,000 937.000 Land, buildings, etc. 2.100,000 2,115.000 Repairs, mainten1.467,000 anco, etc 1.100,000 Transport 5,500,000 9.257,000 Miscellaneous services 1,094.000 1.424,000 Empire air training scheme 3.096,000 3,096,000 Total navy, army, aii 75,400.000 85.249.000 Reverse l'cnd-lease 24,000,000 22,000.000 Ancillary 4.000,000 6,000.000 Rehabilitation .... 2,000,000 3.000,000 Deferred pay — 5,000,000 Gratuities 18,000,000 Totals 105,400,000 139,249,000