BUDGET DEBATE

Wairarapa Times-Age, 9 August 1939, Page 5

BUDGET DEBATE

MINISTER ON DEFENCE POSITION

THE LOAN TRANSACTIONS IN LONDON.

OPPOSITION CRITICISM & REPLY.

(Ry Telegraph—Press Association.) WELLINGTON. This Day-

Two members of the Cabinet took part in the Finance Debate in the House of Representatives yesterday—the Minister of Defence, Mr Jones, and the Minister of Housing. Mr Armstrong. Mr Jones detailed many of the recommendations made by Major-Gen-eral P. J. Ma'ckesy, one of the British delegates to the Pacific Defence Conference, in his report to the Government on the land forces of the Dominion.

Mr Jones said that the Territorial Force had secured the required number of recruits to bring the peacetime establishment up to 16 000 in half the time it was originally thought would be needed. Steps were being taken to raise the peace establishment of the heavy batteries and fortress battalions to war strength.- Arrangements were being made to establish district training centres for the handling of recruits on mobilisation.

Concern at the financial situation of the country was expressed by Mr Wilkinson (Independent, Egmont), who said the terms of the loan transactions arranged by the Minister of Finance in London must have been received by the Government with dismay. He was followed by Mr Armstrong, who contended that the arrangements made with the British authorities compared very favourably with deals made by other Empire countries during the last year or two. The Opposition speakers included Mr Polson (Stratford). He said the Government was indifferent toward the position of the farmers, selling their produce for sterling and paying them in depreciated currency. Sir Alfred Ransom (Opposition, Pahiatua) was speaking at the adjournment at 10.30 p.m.