COST OF DEFENCE

Otago Daily Times, Issue 23882, 9 August 1939, Page 10

COST OF DEFENCE

MORE THAN DOUBLE LAST YEAR EXPLANATION BY MINISTER NEW PETROL TAX UPHELD (From Our Parliamentary Reporter) WELLINGTON, Aug. 8. " We have more than doubled our defence expenditure this year over last year's figures," said the Minister of Defence (Mr F. Jones) during the Financial debate in the House of Representatives to-day when supporting the Government's claim that the extra tax of 4d a gallon on petrol was necessary to help to meet defence costs totalling about £5,500,000. "I think we are justified in increasing taxation to meet the extra cost that defence has imposed on us," the Minister said. "We to meet the expenditure and the Government has taken steps in this direction."

A total of £2,000,000 was voted last year for defence and the expenditure wa5.£2,098,989, Mr Jones said. Some of the extra money was spent in connection with the September crisis. The estimate for this vear was £3,312,438, which was £1,213,438 more chan last year's vote and £1,115.149 more than the amount spent last year. "I think there is every justification for the extra tax," he said. Mr vV. J. Poison (Opposition, Stratford): I thought you were getting the money in London. Mr Jones: Last year the amount spent in all was £2.468,009 and this year it will be £5,414,438. Mr W. P. Endean (Opposition, Remuera): Why the extra £2,000.000? Mr Jones: The extra £2,000,000 is in the Public Works vote for buildings and other purposes. The Minister explained that there was £2,200,000 from the Public Works vote to come out of loan expenditure. The total expenditure would b<* £5.414,438. an increase of £2,946,429. An Opposition member: Then you are spending £3,000,000 more this year? Mr Jones said that was approximately correct. He explained that a number of orders for aircraft and ammunition would be coming to charge this year and next year. At the end of 1940 New Zealand should be complete as far as defence was concerned. Once the whole structure had been built u" the expenditure should be about £3,000.000 a year.