WAR FINANCE

Dominion, Volume 33, Issue 189, 7 May 1940, Page 6

WAR FINANCE

Extra Taxation May Be Needed ESTIMATE OF COST Statement By Prime Minister (By Telegraph—Press Association.) AUCKLAND, May 6. “The financial situation is receiving the attention of the Government at present, and relative methods of furnishing the necessary finances to carry on New Zealand’s war effort with the greatest success will in due course come before Parliament,” said the Prime Minister, Mr. Fraser, in an interview. “To meet extra expenditure, war taxation measures were taken last September,” he continued. “Since then interest-free loans to the extent of £1,800,000 have been made to the Government. For the year 1940-41 war expenditure is estimated to reach £33,000,000, this sum being made up as follows: Navy £1,500,000, Army £25,000,000, Air Force £6,500,000. “Of this total, £13,000,000 is required to be expended in New Zealand, and of that amount £3,500,000 is already provided for out of existing war taxation. This leaves £9,500,000 to be found by various means, which may include some additional taxation and, as already indicated, the tapering-off of certain public works and other expenditure that will have no detrimental effect.

“A sum of £20,000,000 will be required overseas. This will be made available as loan money by the British Government, according to arrangements entered into between the two Governments. There were no other feasible means of making that provision.”