DEFENCE BURDEN

Poverty Bay Herald, Volume LXIV, Issue 19247, 12 February 1937, Page 6

DEFENCE BURDEN

BRITAIN'S EXPENDITURE

STILL URGENT TASK

REVIEW BY CHANCELLOR

POWERS UNDER BILL (British Official Wireless.) Heed. 1 p.m. RUGBY, Feb. 11. Speaking ill the House of Commons oil the proposals for financing the rearmament programme, Mr Neville Chamberlain, the Chancellor of the Exchequer, s;>id that the general experience of the last 12 months had in no way relieved the urgency of the heavy task, nor lightened the cost, ol raising the forces to the proper standard of defensive strength. It had only confirmed bis earlier judgment. How much may be made available out of current revenue, and in what, manner, must he left to the Budget .statement. So far. however, as revenue must be supplemented by appropriations from capital, it was necessary to ask lor preliminary statutory authority. Neither the total amount Io be raised nor the total period over which if must he spread could at. present be. predicted. Flexibility and adaptation to the changing circumstances were the essence of the deience programme, but traditional usage required that the upward limits, not to he exceeded unless 'by further statutory authority, should be specified in the bill.

The Chancellor described the provisions for service and redemption of any capital raised and for safeguarding Parliamentary control. He said that a hill authorising the action proposed would not in itself give authority fur any expenditure. The whole of the proposed expenditure of the defence departments, both normal and exceptional, would continue to be laid before the House of Commons. No sums would be applied from capital or from realised surpluses towards meeting expenditure, save with the knowledge of, and after the approval of. Parliament, which would in. this way control, in each succeeding year, both'the total expenditure on defence and the proportion in which it was to be met from capital. ANNUAL VOTKS Provision would be made annually on the defence votes for interest on the new debt and also after the end of the borrowing period for the redemption of the debt within 30 years. The Leader of the Opposition, Major C. H. Attlee, called attention to the serious import of a proposal unprecedented in times of peace, and asked lor the laving of a White Taper on defence before' the House was called upon to reach a decision.

The Prime Minister, Mr. Stanley Baldwin, promised to consider whethet a White Paper would be the 'best means of presenting information which the House might desire to have in advance, of a general debate for which he offered facilities.

Mr. Chamberlain was asked whether his statement, meant that soon after the. bill giving authorisation for the raising of large sinus of money was passed, there would in fact be issued stock for the purposes ol raising money. The Chancellor replied: "I cannot possibly answer that, question to-day.'

The second clause of the financial resolution in connection with the bill an. nounccd by the Chancellor authorised the Treasury to "raise money in any manner in which it was authorised to raise money under and for the purposes of sub-section 1 of section 1 of the War Loan Act, 1919/'

The accompanying memorandum cm. phasises that it must be understood the figure £4CO.COQ,COO in the resolution does not, purport to represent, the cost of the new programme. It represents the maximum aggregate sum which may be provided from borrowed moneys, or from the old sinking fund towards the total cost of defence in the course of the period, limited by the resolution to five year.*. These limits on sums to be borrowed and on the period of borrowing nre not themselves final, as either may be modified by a .subsequent Parliamentary enactment if the conditions so reT I:IV - _____