£33,849,000 EXTRA

New Zealand Herald, Volume 82, Issue 25286, 21 August 1945, Page 4

£33,849,000 EXTRA

WAR EXPENDITURE REVISED. ESTIMATES GRATUITIES AT £18,000,000 (S.R.) WELLINGTON, Monday "There will be no scope for adjustment of taxation during this financial year," stated the Alinister of Finance, Air Nash, today, 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 iii the Minister's revised estimates the total has reached £1139,249,000. The first reference to the cost of gratuities, £18,000,000, is made by the Alinister, while another new item in his revised estimates is £5,000,000 for deferred pay. The Alinister 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. Provision for Demobilisation The revised estimates have been prepared up to the probable dato 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 qualified would be given three months' leave on full pay and allowances. Provision also had to be made for mufti allowances, deferred pay and war gratuities. Allowing for these factors, the Alinister stated that his revised estimates of expenditure in the War Expenses Account were as follows: Budget Revised Estimates Estimates £ £ Pay and allowances 35,200,000 38,1(7'.;,000 Acrom., food, clothintr .. . 5,600,000 5,U52,000 War & other stores 21,170,000 22,020,000 Medical nnd education services .. 640,000 937,000 Land, buildings, etc. 2,100,000 2,115,000 Repairs, maintenance, etc. . . 1,100,000 1,467,000 Transport .. .. 5,5uu,000 0,257,000 Miscellaneous services . . . . 1,084,000 1,42*1,000 Empire air training scheme . . . . 3,000,000 3,006,000 Total navy, army, air . . 75,400,000 85,218,000 Reverse lend-lease . 24,000,0<r0 22,000,000 Ancillary . . .. 4,000,000 6,000,000 Rehabilitation .. 2,000,000 3,000,000 Deferred pay .. Gratuities .. Totals . . 105,400,000 138,248,000 War and Other Stores Alost of the foregoing headings were self-explanatory, said tlie Alinister, but he pointed out in connection with the item 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 111 respect of goods already supplied or shipped. A large portion of the provision related to stores of lendlease origin.

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. A Difficulty Emphasised In the-case of gratuities, estimated to cedure '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.