COST OF WAR

Otago Daily Times, Issue 24685, 14 August 1941, Page 6

COST OF WAR

THE LATEST FIGURES £47,000,000 TO JULY 31 RECEIPTS AND EXPENDITURE (0.C.) WELLINGTON, Aug. 13. Up to July 31, 1941, New Zealand has spent just on £47,000,000 on the war,, according to information given by Mr Adam Hamilton, a member of. the War Cabinet during his speech on the second reading debate of, the Finance Bill in the House of Representatives to-night. Mr Hamilton said that members of the War Cabinet were furnished with a monthly statement of the war expenses account, and he thought it would not be out of place to give a brief analysis of the latest figures available, those up to a fortnight ago. Mr Hamilton said that the total receipts paid into the account since it was opened in September, 1939, were £49 129,787. Of this amount, £24,612,237 was represented by loan money. £8,176,988 having been borrowed overseas and £16,435,249 in New Zealand. The amount received into the account by way of taxation from the beginning of the war was £24,517,550, with other receipts of about £3,400,000. , The total expenditure to date since the war commenced was just on £47,000,000, but over £5,000,000 of this was amortisation of debt. It would, therefore, be seen that the receipts were fairly evenly divided between loan money and taxation. Figures for First Year Mr Hamilton also gave details of the receipts and expenditure in the War Expenses Account for the financial year ended March 31. 1941—the first full year of the war. The year began with a cash balance brought forward of £953,380,. he said. • Borrowings in New Zealand amounted to £11,996,252 and in Britain to £6,266,231, a total of £18,152,483 in loans. Taxation amounting to £15,745,247 was paid into the account, and therfe was . a . temporary transfer of £500,000. Other. receipts were £664,643. The gtand total of receipts was £35.995.754. •,*#. On the payments, l side, Mr Hamilton said, the estpenditiire on the navy totalled £2,109898,-. on the army £17,249.621, and on the R.N.Z.A.F, £7 487.796. Civil payments absorbed £278,593, the 'Aeroplane Fund (Fighters for Britain) £94,305. a temporary transfer of £700,000 was repaid, and amortisation of debt absorbed £3,647,992. while the cash balance brought forward was £4.428,548—a grand total of £35,995,754. >

Effect on Dominion’s Economy “I often hear it asked,” said Mr Hamilton, ‘“How is the War Expenses Account getting on? ’ It is certainly wise that the public should be made aware of these figures, as they constitute an expenditure that will have a serious effect on our economic life. ' Mr Hamilton said 'that although the war expenses figures were, published monthly he had not seen any very severe criticsm. He considered - that the method of financing the war, would bear critical examination.