WAR EXPENSES ACCOUNT

Wanganui Chronicle, Volume 85, Issue 190, 14 August 1941, Page 6

WAR EXPENSES ACCOUNT

REVIEW BY HON. A. HAMILTON (P.A.) Parliament Bldgs., Aug. 13. An interesting review of the War Expenses Account was given in the House ’of Representatives to-night by the Hon. Adam Hamilton (Opp., Wallace), who stated that members of the War Cabinet received a monthly statement of this account. The latest figures available, namely, as at July 31 last, showed the receipts were almost evenly divided between loan money and taxation, amounting to about £24,000,000 from each. Mr. Hamilton compared tne spirit shown in New Zealand with that in the Old Country. The British Prime Minister had stated he had nothing to offer except toil, sweat, blood and tears. In New Zealand we were determined we were going to conduct the war without domestic sacrifices. Mr. Hamilton added that we were a wonderful people, and he hoped it would be possible to carry on our social benefits, and still not go short as far as war needs were concerned.

Analysing the War Expenses Account, he first dealt with the main items for the financial year ended March 31, 1940. Payments for the Navy, Army and Air Force for civil purposes totali'-d £7,106,133, leaving a cash balance of £953,380. For the year ending March 31, 1941, receipts totalled £35,995,753 and payments £31,567,205, leaving a balance of £4,428.543. Payments made last year, in addition to defence and civil requirements, were £94,305 for the aeroplane fund, £700,00 for the repayment of temporary transfers, and £3,647,992 for amortisation of debt.

Giving the figures available up to July 31. this year, he said the total receipts from the opening of the account in September, 1939, from loans, were £24,612,237. Or this amount £8.176,988 was borrowed overseas and £16,435,249 borrowed in New Zealand. The amount received from taxation from the beginning of the war was £24,517,550, with other receipts totalling £3,400,000, The total expenditure to date was just on £47,000,000, but over £5,000,000 was amortisation of debt.

Referring to the statement by the Auditor-General that the cash balance of £4,428,548 at the end ol the financial year was not sufficient to meet the commitments, Mr. Hamilton said the statement may be correct, but was it lair criticism? He greatly doubted it. He pointed out that much of the expenditure had been made on equipment in New Zealand and this was a valuable and realisable asset, if realisation were necessary. Of the war debt incurred to the end of the last financial year, namely £21,238,537, the sinking fund amounted to 17 per cent. Although the war ex-penses figures were published monthly, said Mr. Hamilton, he had not seen any very severe criticism. If he expressed his own opinion, however, it would be that the method of financing the war would indeed bear critical examination. He emphasised that wealth could not be distributed or spent until it had first been produced, and that was one of the things that had to be remembered, and he added that production of wealth required energy.