THE FINANCES

Evening Post, Volume CXXXVI, Issue 54, 1 September 1943, Page 3

THE FINANCES

SPEECH BY MR. NASH

P.A. Speaking at Oamaru tonight, the Minister of Finance (Mr. Nash) stated that democracy had been challenged in the World War and while the Government accepted the responsibility for holding the election, it was good, as a democratic country, to hold an election and there was no reason why they should be divided on the war effort. He paid a tribute to Britain's heroic stand in September, 1940, when she saved the world, and he referred to the Dominion's war effort in sending fighting men overseas and in increasing production at home. There was every justification to feel proud of what New Zealand's. sons and daughters had done. On the financial side, this country had found £239,000,000 for the war alone,' at the same time keeping up the high standard of living. Since September, 1939, £88,000,000 had been raised in taxation, £123,000,000 in loans, and £27,000,000 on lease-loan. Britain had paid £29,000,000 on New Zealand's account for training men overseas "and on the air training scheme, in Canada, but New Zealand had repaid £21,000,000, leaving only £8,000,000 still' owing. When the liberty loan was over-subscribed a further £4,000,000 was paid off. Since the Government took office the oversea debt had been reduced by £114,----000,000, so that they, owed £7,000,000 overseas, including war costs, less than when the Government took office. If that- was a test of good management of the country's finances, then some credit was due to the Government.

Mr. Nash also referred to the.Government's control of currency and the credit of this country, stating that £2,162,000 profits of the Reserve Bank had been paid into the Government funds. The Reserve Bank had. advanced £23,000,000 for the construction of houses and 359,000,000 feet of timber had been used in building hosgitals and stores for. the Americans, ie hoped the programme for the construction of 3600 houses would be carried out during the next 12 months. They had given educational facilities for children, building sjnee" 1935 400 new schools and spending £4,000,000 on school buildings, and were spending £26,000,000 on social services against £11,000,000 in 19315.