NO PROFITEERING

Otago Daily Times, Issue 23512, 28 May 1938, Page 15

NO PROFITEERING

REARMAMENT CONTRACTS CHANCELLOR REPLIES TO CRITICISM NEED FOR HEAVY TAXATION (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, May 26. (Received May 27, at 5.5 p.m.) Replying to the debate on the Finance Bill in the House of Commons, the Chancellor of the Exchequer (Sir John Simon) said that there was no proof that there had been vast profiteering in armaments, as had been alleged by members. The Chancellor said that as soon as the armaments programme began the Government set to work to try and devise machinery to ensure that the rate of profit on contracts should be reasonable and not excessive. Sir John spoke of the staggering increase in taxation and expenditure over recent generations. The country faced this expenditure, he said, for the sake of the defence of their native land and for the security of the belief and convictions that they held. Sir John rebutted the suggestion that taxation was inequitably distributed, and, referring to the balancing of the Budget and borrowing, said he had kept two propositions in mind in considering the right course to adopt. The first was that borrowing was only postponing payment—it did not obviate it. The second was that the increased burdens they faced to-day were not likely to be reduced quickly or substantially. Air Raid Precautions The Chancellor then made an important announcement on the relief to be afforded in respect of air raid precautions. He said that the Government would introduce legislation to secure that the annual values of properties should not be increased for the purposes either of income tax or for rating by reason of expenditure incurred in structural alterations, additions, or improvements made solely for the purpose of protection in the event of air raids. In criticising the Bill, Mr A. V. Alexander (Labour) declared that the Government had increased the deadweight of the debt from £7,400,000 to £8,500,000, and started a series of unbalanced budgets, after absorbing for expenditure the whole of the economies on the war loan conversion operation. Mr Alexander said he based his criticism of the Finance Bill on the contrast which he sought to draw between profiteering, which he alleged was taking place out of rearmament, and from State subsidies on the one hand, and heavy indirect taxation on the other. DESJRE FOR PEACE MR CHAMBERLAIN'S. STATEMENT SPEEDING UP REARMAMENT (British Official Wireless) RUGBY, May 26. The Prime Minister (Mr Neville Chamberlain), the Foreign Secretary (Lord Halifax) and the Minister for the Co-ordination of Defence (Sir Thomas Inskip) met the General Council of the Trade Union Congress in continuation of the meeting on March 23, when the question of acceleration of the rearmament programme was under discussion. Sir Walter Citrine expressed fear that Britain's armed strength might be used to assist the Fascists. Mr Chamberlain replied: " I am no Fascist, but a democrat of the home breed. The Government desires peace, and if this can be achieved in two years, I believe the danger of an international upheaval will subside." The Prime Minister added that the Government did not desire to support either side in Spain. ESSENTIAL COMMODITIES PLAN IN EVENT OF WAR LONDON, May 26. The Government has introduced in the House of Commons an "Essential Commodities Bill," regularising past purchases of wheat, sugar, and whale oil in the event of war, and authorising future purchases of food, fertilisers, animal feeding stuffs, petroleum products, and the erection of storage warehouses. It was stated that a fund would be created into which would be paid sums periodically voted by Parliament. SECRET BUYING OF MEAT REPORT OF ACTION BY GOVERNMENT LONDON, May 16. The Daily Express says that the Government has commissioned the secret buying of beef and mutton in Australia, New Zealand, Argentina, and Uruguay. The action, it is stated, has been taken on the recommendation of Sir Harry French, director of the Food (Defence Plans) Department of the Board of Trade. Lord Vestey is stated to be acting for the Government.

Carcasses for storage will arrive in small shipments until suitable cold-storage accommodation is available at Liverpool. Manchester, and other provincial points less open to air attacks than the London docks. Sir Harry French has already bought huge quantities of wheat and other commodities for storage against emergencies in Great Britain. Suoplies for 16 weeks are already in store.