ARMS SPEED-UP

Poverty Bay Herald, Volume LXIII, Issue 19097, 19 August 1936, Page 13

ARMS SPEED-UP

BRITAIN'S HEAVY BURDEN BAN ON PROFITEERING LONDON. July 11. Supplementary estimates issued yesterday show that nearly £20,000,006 more'has to be found for arms in the current financial year, bringing the. total for the three fighting services to £IBB,.63,030. A Budget deficit is not only probable but inevitable, and the overburdened taxpayers have already been warned by he Chancellor of the Exchequer to exject an increase in income tax next year In his last Budget, the Chancelloi made provision for £54,000,000 extra expenditure on Army, Nuvy, and Ah Force. This was to include £20,000,000 tor supplementary estimates. Since then. Sir Thomas Ins'kip, Minister for Defence, has been speeding up. He wants more money—and needs it quickly. A giant defence loan is on the way. But the stronger the nation's defences the greater the upkeep cost. Thirty years ago Sir Austen Chamberlain, then Chancellor of the Exchequer, raised a storm by increasing incomo tax iby a penny, from lid to Is-

"This year's additional taxation," said Mr. Neville Chamberlain last, week, "represent? but a fraction of the additional expenditure we are incurring this year." Dolefully he added, a deticit next April is "practically certain," the only uncertainty being the amount. Another income, tux increase will help to lift the rate towards the 1919-1922 peak level of 6s. in the £. On the basis of current expenditure, arms expenditure works out at £5 a head for every man, woman and child in the country—nearly three times 1913-14's £77,c0a,00a. What is worrying the Government is whether, for each £5 spent they will gel £5 value. The taxpayer lias been promised no "profiteering." The '"News Review," which publishes much information that is never disclosed in the daily Press, states that while the Air .Ministry was last week pressing for new high-performance 'planes lor the Royal Air Force, makers were protesting their inability to quote prices until the 'planes were actually in production, so varied are requirements, so delicate is much of the work involved. In 60 per cent of the orders placed to date makers have not had the time or .means to lender a price; the majority of Aii' Ministry contracts for current orders have not been signed.'When an enterprising newspaper called lor appointment of an arbitration committee to settle point? in dispute, defence officials hurried to declare: The Hardniait Lever Commit lee, which was appointed in June, 1035. to advis contract prices for Air Force machines, is now empowered to act as arbitrator between the manufacturers and the Air Ministry. Members of the committee are Sir Samuel Hardman Lever, one-time Financial Secretory to the Treasury. Mr, Patrick Ashley Cooper, Bank o'l England director, and Mr. 11. G. I.udd. who report to the Sec rotary of State for Air. Last, week Lord Swinlmi. the secretary for Air, opening a new municipal nrrodrrwiP at fork, said: "The Ail" Force of this country is expanding, but l»nlv for one purpose—-to keep the peace |of the world." O nn of (he first steps towards Hint o'> ;< rt-iv will be In hereto the nersnnnel of the TLA.F to Sft.COO. wide], is r,rvyj niovo than the mnrinium provided for in the orkciwl estimate of 1936.