LARGE INCREASES IN EXPENDITURE

Timaru Herald, Volume CXLIII, Issue 20670, 8 March 1937, Page 9

LARGE INCREASES IN EXPENDITURE

BRITISH BUDGET ,BURDEN ENORMOUS COST OF ARMAMENTS MORE MILLIONS FOR AIK DEFENCES United Press Association—By Eleat-to Telegraph—Copyright LONDON, March 5. The Budget for 1937 shows so far an increase in expenditure of £82,000,000, compared with last year. The expenditure totals £619,635,000, exclusive of loan expenditure. With the issue of the Air Estimates, all the main estimates are now known. An analysis of the finances reveals that, taking into account the £80,000,000, which the Government is raising for defences by loan the net figure required from extra taxation is only £16,474,000, and consequently an increase of slightly over 3d in the pound will meet this amount. However, the continued prosperity, trade improvement and the increased surtax from the last Budget are expected to account for approximately £16,000,000, and consequently there is every possibility that the income tax will not be increased. OUTLINE OF AIR ESTIMATES INCREASE IN MACHINES AND PERSONNEL United Press Association—By Electrio Telegraph -Copyright LONDON, March 5. The Air Estimates total £82,500,000, of which £26,000,000 comes from the Defence Loan. The Air Force on May 1, will comprise 10C home squadrons, 26 overseas and 20 of the fleet air arm. The personnel will be 4850 officers and 51,000 men. It is aimed to increase the personnel to a total of 70,000 exclusive of those serving in India. Squadrons will later consist of 1750 aircraft, of first-line strength. The six factories to manufacture engines should be completed In a few months. Flying training is being carried out at 13 civil flying schools, and the service schools are being increased from four to eleven.

It is proposed to create ten special units to operate the balloon barrage in connection with the defence of London. The civil aviation vote totals £2,315,000 of which £70,000 will be devoted to the imp.ovement of ground facilities on the Empire routes. Only £5,800,000 from the increase of £31,800,000 in the air estimates have to be met by the taxpayer. The defence bill totals £277,804,000 an increase of £89,000,000 of which £80,000,000 are coming from the loan. Minister’s Outline In the memorandum accompanying the Air Estimates, Viscount Swinton, Secretary of State for Air, states that the present scheme of expansion provides for a metropolitan air force of 124 squadrons, of which 100 will have been formed by the end of March. During the summer the number will rise to 124 squadrons, including 20 squadrons of auxiliary air fofee, with an approximate first line strength of 1500 aircraft. Provision will also be made for increasing the fleet of the air arm from 217 to 278. The first line aircraft during the course of the year, wiil be in conformity with the Admiralty requirements for aircraft carriers and catapult ships. Provision for Air Force pay is increased by £1,776,000, to £8,466,000. The estimates provide that £18,000,000 should be spent on land and buildings, including the construction and equipment of shadow factories. Extension of Aerodromes This is an increase of £8,650,000 over the similar provision made in 1936-37, but towards this expenditure £14,000,000 is to be' provided by loan. Extensions, either permanent or temporary in character, have been carried out at 34 of 62 aerodromes. Thirteen additional aerodrome sites are now in occupation, and in addition five civil aerodromes have been equipped, and are being used for service purposes. Work is in progress on another 26 sites, and further sites will be acquired during the course of the year. ’PLANES FOR EMPIRE DEFENCE HINT OF BUILDING IN AUSTRALIA United Press Association—By Electric Telegraph—Copyright (Received March 7, 6.30 p.m.) SYDNEY, March 7. The special Melbourne correspondent of “The Sun lay Sun" says: “Fisherman's Bend aircraft factory may be called on to supply ’planes for the defence of India, South Africa and New Zealand, as weir as Australia, if the British aircraft factories are unable to meet the rush of defence orders during the next year or two. This, it is stated authoritatively, is one of the reasons why every effort is being made to push ahead with plans for the early production of planes at Fisherman’s Bend. The first of these 'planes ■..■ ill be turned out before the end of the year.