MUNITIONS PLAN

New Zealand Herald, Volume LXXV, Issue 22987, 15 March 1938, Page 8

MUNITIONS PLAN

CONTROL OF PROFITS SCHEME FOR EMERGENCY [prom otra OWN correspondent] MELBOURNE, March 8 Should the need occur for mass pri> duction of munitions in an emergency, a scheme for control of profits will 1>« introduced by the Commonwealth Government. The Prime Minister, Mr* Lyons, made this announcement to-dny* Plans now being prepared would fully cover this aspect of munitions supply, > he said.

Mr. Lyons made the announcement in revealing the successful tenders for portion of the Defence Department's £IOO,OOO worth of trial munitions orders. The orders have been distributed between four States. Tenders also will be called soon lor steel helmets and certain pyrotechnio • stores. While these orders will ba small, and purely of an educational nature, they will be the means of proving that such items can be made locally. "It is necessary for the defence forces to be assured of adequate supplies of munitions and equipment if they are to be fully effective in defending the Commonwealth against aggression," said Mr. Lyons. While generally sufficient to meet peace-time requirements, the output of the Government factories would be inadequate for wartime needs. It would be necessary to depend on local industrial capacity to supply additional requirements.

It was not proposed, in peace time, to place other than experimental orders with private firms.