PAYING FOR WAR

New Zealand Herald, Volume 80, Issue 24631, 9 July 1943, Page 4

PAYING FOR WAR

BRITAIN'S RESPONSE INCOMES WHITTLED '£2,000,000,000 IN SAVINGS EFFECT ON PEACE PLANS By Telegraph—l'ress Association —Copyright (Reed. 9.30 p.m.) LONDON, July 7 •While it could not be pretended that any financial fortifications were impregnable, said the Chancellor of the Exchequer, Sir Kingsley Wood, when winding up the Budget debate in the House of Commons to-day, Britain could fairly claim that, after four years of unprecedented struggle, the financial front line stood firm and strong. "We have not spared ourselves," he said. "Our object has been to pay for the war as much as we can, and this year the Budget expenditure will be over eight times what it was ten years ago. The total expenditure since the war began is already double what it was in the whole of the last war. The amount raised in taxation this year is half as large again as the total amountpaid in taxes in the last war. We have borrowed a sum greater than the whole of the national debt before the war began." Taxes of all kinds last year took just under 40 per cent of all private incomes. The average citizen paid about one-third of his entire income. Of 12,500,000 taxpayers, some 10,000,000 belonged to the smaller income groups and wage-earners. Out of every pound 6pent this year, Britain would borrow ten 'shillings. Through voluntary savings, capital of £2,000,000.000 was now in the possession of small men and women. That would have a profound effect on policy andplansafterthe war. One of the great duties of the Government would be to maintain economic stability, if only in the interests of the smalt men and women, who now had such a large stake in national a Hairs. Sir Kingsley said it was the desire of some people, particularly workers, to pay their taxes week by week. He would never try to controvert such a system if it could be worked. The matter was under consideration, and lie had not given up hope of some reasonable scheme being devised.

PACIFIC WAR STRATEGY AUSTRALIA'S CONTRIBUTION LONDON, July 7 The Australian Minister of External [Affairs, Dr. H. V. Eyatt, speaking in Leeds, where he received the freedom of the city, said that no one had ever proposed to spend weeks or months in a separate attack on every island held by the Japanese. What was necessary was to apply pressure on Japan from all points, including China. 1 For that purpose. Dr. Evatt said, it had' become essential to attack and reoccupy some islands of crucial importance. Some island-hopping was absolutely essential. It was all a matter of time, place and circumstances to be judged bv the military authorities. There was also another aspect. Many British islands were still held by the enemy. "While any of our enemies retlrin a single British island, no British people dare rest satisfied. That is a principle iust as important as the achievement of a military objective, for the moral factor in war is of incalculable importance. It is our supreme duty to' hasten the complete overthrow of any enemy who has impiously hauled down the British flag." Australians, who began the war as a crusade against aggression in Europe, eventually had the duty, as a British nation and trustee of civilisation. of arresting the tremendous southern advance of Japan. Australia continued to live up to its responsibility.