WAR CABINET

Otago Daily Times, Issue 24421, 5 October 1940, Page 13

WAR CABINET

DIRECTION OF FINANCIAL POLICY MR HAMILTON'S EXPLANATION LOAN TERMS NOT DISCUSSED 'From Our Parliamentary Reporter) WELLINGTON. Oct. 4. ' When the War Cabinet ceases to justify the purpose for which it was set up, I want to say that it will cease to exist," said the Leader of the Opposition (Mr A. Hamilton) a member of the War Cabinet, during the discussioi, on war finance in the House of Representatives to-day. Mr Hamilton added that when the spirit of agree ment entered into to form a War Cabi net ceased to exist there would be no more War Cabinet but thai had not happened yet Government Policy " It has been said that the proposals for raising a compulsory war ioan should have come before the War Cabinet," Mr Hamilton said "So far as the rpauiatjons governing the loan are concerned that criticism is justified, but the argument that the term: of the loan should have been considered by the War Cabinet cannot be substantiated. Those proposals were first outlined in the Budget as the Gov ernment's declared policy and thai could not verv well be altered by the War Cabinet. The for the loan must rest solely on the Gov •rnmerit." Mr Hamilton said ne believed nowever. that the ioan regulations might very well have been embodied in a Bill to come before Parliament, because there was not much use in the House meeting every month or so if importanl proDosa'ls of that kind were not to come up for discussion If the Minister of Finance (Mr W Nash) had listened to the current discussion of the loan proposal before the regulations were framed for instance, he would verv likely have taken some notice of it. Mr Hamilton contended that the loan in the form it had been issued was both unjust and unwise as it would make a heavy drain on money that was engaged in production. It was not a tax on wealth, but or. the economic life-blood of industry, and the Government would have been better advised to draw on the £30.000.000 or £40,000,000 lying in the banks earning no interest. Purely a War Loan "In his speech, the Minister of Supply, Mr D. G. Sullivan, said that the balance of the loan which was not required for war purposes would be devoted to civil expenditure," MiHamilton said, "That will be disturbing to the public. Mr Nash: There is something wrong there. Every bit of this money will be used for the war. Mr Hamilton: Well, will it be used to pay some of the overseas expendi-' ture?' Mr Nash: Yes, that is so. "People will stand a lot if they feel It is just and necessary" Mr Hamilton concluded. " but if they are labouring under a sense of injustice, they cannot be a contented community"