DEFENCE

Otago Witness, Issue 3571, 22 August 1922, Page 23

DEFENCE

LOCAL AND NAVAL. Mr Massey, in the course of his Budg-efc speech on the 15th, referred to the Washing* ton Conference on Disarmament as having resulted in the creation cf a better under* standing 1 among those nations bordering on. or having interests in, the Pacific. Th# Avisos of war had, however, not been re* moved, _ and, while it ig imperative that our Defence expenditure should be kept a# low as possible, there was a limit beyond which reduction could not be made with s , This limit was governed by th® ability to rapidly expand our naval ana military organisation to its full effective strength in time of need, and required ih® lefcention of the necessary machinery to enable this to l>o achieved. Overlapping and duplication had been eliminated, and the administration of the department had been reorganised in such a way as to enable trie fullest advantage to bo taken of tho existing machinery of State. The expenditure out of the Consolidated Fund for defence, including ordnance services and the maintenance and training of uie Territorial Force, during the financial year ended March 31, 1922, amounted to £415,401, or £3333 less than the amount appropriated. The estimated expenditure for the current year was £317,616, including an economy of £50,000 per annum effected by the execution of a new contract for th® supply of small-arms ammunition. r lho net expenditure from vote “War Expenses” for the past year was £914,227. This included £326,000 for the medical treatment of returned soldiers for war disabilities, £l7O 000 for transport claims, £46,000 war gratuities, and £406,112 for post-war equipment t*o replace equipment taken from Vew Zealand with the Expeditionary Fore® —that was. after allowing for a net credit of £48,756 on account ol item “Repatriation.” The estimated net expenditure far the current year was £799,252, in which provision was made to meet liability to tho Imperial Ministry of Shipping for transport charges £475,0C0. At the 31st March last the cash and investments held by the War Expenses Ao. count amounted to £3,710,439. representing unexpended loan balances, and various recoveries on account of capital expenditure, including recoupment from tho sale ot surplus stores. Against this was the estimated liability referred to above, including the amount duo to the Imperial Government, whose final accounts have not yet been received. These accumulations properly belonged to capital account, and should be applied to the reduction of the war debt. It was proposed, therefore, to transfer £3,003.000 to I.oans Redemption Account, the ultimate result of which would lie to effect a clear annual saving of £30,000 for sinking fund payments alone, giving the power to remit subsequently a 3 much taxation as was represented by that amount. The expenditure on naval defence for the financial year amounted to £413,665, under the following headings: Permanent charges:— Naval Defence Act, 1909 (H.M.S. New Zealand) — Interest £43.3-41 Sinking fund 71,807 Annual appropriation ... £413,665 The capita! sum owing on account of H.M.S. New Zealand was £1.795.166. against which accrued sinking funds amounting to £931.429 were held by the Public Trustee, to whom 4 per cent, per annum on the capital sum was paid for this purpose. Mr Massey continued: “The time has arrived when the contributions cf the dominions, whatever form they may take, should he placed on a more satisfactory and businesslike basis. If it was certain that contributions would be forthcoming from Germany on account of the enormous expenditure incurred bv British countries during the war, I would suggest that the cost of new warships should be a first charge on such payments: but, in any caso, the dominions cannot allow such a very large proportion of tho total cost of the naval defence of the Empire to be carried by the taxpayers of the United Kingdom; to do so would be grossly unfair and unpatriotic. The countries of the Empire should contribute to the defence of the Empire, naval defence particularly, in proportion to their financial ability. The cost of tho Chatham, with the training ship, will he approximately £300.000 per annum. This sum counts as a contribution. Tho payments we are now making on aocount of H.M.S. New Zealand amount to about £IOO,OOO per annum, and if onr finances will permit in the next financial rear, we should make our contribution for naval defence, including the items I have mentioned, up to £SOOXOO per annum. This may seem small, but it will, if agreed to! be a move in the right direction and an improvement on the present position, and it can be improved upon as time goes on and as our financial conditions permit,”