CARE URGED BY MR COATES

Southland Times, Issue 24180, 17 July 1940, Page 6

CARE URGED BY MR COATES

Acquiring Overseas Securities USE FOR WAR PURPOSES ONLY (From Our Parliamentary Reporter) WELLINGTON, July 16. As a member of the newly-constituted War Cabinet, said the Rt. Hon. J. G. Coates (Nat., Kaipara) when speaking in the Budget debate in the House this evening, he thought that his efforts might best be directed towards getting some modification of the Budget proposals so that“the taxpayers would be brought into line in the war effort. Today all were taxpayers and were expected to make their contributions with a smile. The Government proposed to acquire overseas investments and securities, Mr Coates said.

I The Minister of Finance (the Hon. W. | Nash) interjected to say that the Govi ernment had the right to acquire over- | seas securities, but at the present time | it was merely compiling a register’ of e i persons holding those securities. It ! did not intend to realize on those securi- ' I ties in a way that would depress the S’ I market. I Mr Coates said it should be made L clear that the securities would be used s only if and when war necessities demanded it, and not for domestic rea- “ sons. It was difficult to divide the two, " but he interpreted the Budget to mean that overseas securities would be taken * as a war measure only. . The investt ments were within the Empire, Mr • Coates added, and were being used to I develop the resources of the Empire. It ’ ! would be wrong for the Government to | take steps that would curtail the flow j of manufacturing in other parts of the Empire. 1 It would be a great consolation and I satisfaction to thousands of people if I they knew that the Government lookI ed upon the efforts of the Empire as i part of the defence of New Zealand. There was nothing to be gained by making recriminations against people who had invested their money overseas. The Government should be careful about taking the securities, but the war needs were paramount. Unfairness might easily arise and that, could best be illustrated by considering j the position of those who had put I money into the search for oil in New j Zealand. Because oil had not been I found the oil shares were down to [ nothing, but if they were taken over at their present value and then oil was found the position would be manifestly unfair to those who had started the search. That could easily apply to shares invested in mining in Australia.