DEFENCE COMMITMENTS Spending Could Bring Tax Rise

Press, Volume CIII, Issue 30469, 17 June 1964, Page 13

DEFENCE COMMITMENTS Spending Could Bring Tax Rise

(New Zealand Press Association) WELLINGTON, June 16. “If increased expenditure on defence and other important Government activities results in an increase of taxation at any time, then I feel sure you will fully understand it, fully approve it, fully support it, and explain the reasons to the members of your branches when you go home,” the Prime Minister (Mr Holyoake) told the Dominion council of the Returned Services’ Association today.

“We are arming our forces with modern equipment We are also playing a full part in collective defence agreements and collective defence exercises,” he said.

“With budget time looming close, no Prime Minister would be doing his duty if he did not take every opportunity to remind the people that no effort is being spared to restrain Government expenditure to what is essential and absolutely necessary,” said Mr Holyoake. “Like every other aspect of Government expenditure, our defence plans must necessarily be kept under constant review from the viewpoint of priorities and availability of resources. “But I want to make it clear that a major objective in the Government’s policies is to ensure a proper defence of our country. No government’s policies would make sense unless the nations basic

security were first ensured,” Mr Holyoake said. “Defence expenditure must be increased further and defence preparedness accelerated if the way of life we have known and enjoyed is to be preserved,” said the Dominion president (Mr H. M. Mitchell). He said the uneasy international situation and especially the developments in South-east Asia had emphasised the sound base of the association’s policy that a greater part of the gross national product should be devoted to defence. “Notwithstanding the substantial increase, in defence expenditure announced last year by the government, the Dominion executive is again recommending to the council that a still greater effort should be made,” he said. CALL FOR SACRIFICE “Surely we can forego something now to insure the future.”

Mr. Mitchell said that at last year’s council meeting, the Minister of Defence had announced the appointment of the first secretary of the new Ministry of Defence. “As to be expected With a new organisation, a year later the final pattern of responsibilities had not yet been settled. The Dominion executive had had a number of discussions with the Minister on this subject. “We have been assured repeatedly that the Chief of Defence Staff, on the military side, and the Secretary of Defence, on the civilian side, will be of equal status in parallel partnership,” Mr Mitchell said. HELD ESSENTIAL

“We regard such to be essential to the maintenance not only of the efficiency of the services but also to the efficient defence of the country. As we understand it the department’s role is to enable long-term budgetary provision to be made for defence purposes and to streamline those parts of the administration of the services which may be classed as non-service,” he said.