ECONOMY URGED

Gisborne Herald, Volume LXVI, Issue 20053, 27 September 1939, Page 11

ECONOMY URGED

GENERAL EXPENDITURE VIEWS OF OPPOSITION OVER £75,000,000 VOTED BIG RISE ON LAST YEAR (Spficial to the Herald.) WELLINGTON, this day. The Opposition reception to the war finance proposals of the Government was not unfavourable, although one member suggested that this was only the first dose. The Leader of the Opposition, the Hon. Adam Hamilton, contended that the Government should be able to effect economies in general expenditure that would be more than sufficient to meet the £4,000,000 deficit expected in the war expenses account this year. He added that though the Minister of Finance, the Hon. W. Nash, had given an outline of the expenditure that would be needed, lie had told only half the story. “For what reason is the Minister taking authority to borrow £10,000,000 when the deficit he expects amounts to approximately £4,000,000?" asked Mr. Hamilton. "We had expected that the Minister would have been able to give us an outline of the savings anticipated in the general expenditure.” Mr. Hamilton added that the House had already voted over £75,000,000 in general expenditure for the year, this figure being an increase of nearly £9,000,000 over that of last year. In addition the Minister now wanted authority to spend an additional £9,750.000 for the army, air force and naval requirements. He should have been able to say how much could be saved from other accounts to meet that extra expense. Avoidance of Waste “ir the Minister of Finance cannot meet the anticipated deficit of £4,000.000 in the defence account out of economies made in other forms of expenditure. I would say he is not as careful as he might be,” said Mr. Hamilton. “I thlj.l: .he Minister can economise to that extent. Waste may be unavoidable in the army expenditure, but to inspire unity in the people they must have an assurance that waste is not going on anywhere else." ■Mr. Nash replied that the total expenditure of £9.750,000 proposed for the remainder of the financial year consisted of a vote of £5,000,000 for the army, £3,500,000 for the air force, and £1,250,000 for the navy.

The principal avenues of expenditure in the army vote were £1,800,000 for equipment and munitions, £1,600,000 for pay allowances, £750,000 for buildings, and £150,000 for clothing. The principal items of expenditure in the air force would be £2,000.000 for buildings, £700,000 pay and allowances, £650,000 for the purchase of aircraft equipment and bombs. New Zealand’s commitment to supply trained men for the Royal Air Force involved a speed-up in the completion or works now in hand and the estaoof five new training centres. The navy vote in the Budget was £920,000, but increased personnel and maintenance of additional craft lor examination. services and mine sweeping would increase the costs to £1,250,000 lor the present year. Details Declined The Rt. Hon. J. G. Coates (Nat., Kaipara) asked if the £5,000,000 required for-the army was additional to the money previously voted. He also asked if an outline couid be given ot the equipment needed. Mr. Nash: It is not possible for me to make those details public at this stage. Mr. Coates: Does the £5,000,000 include provision for a division and a territorial force as well? Wastage and the making up of reinforcements will have to be taken into account if a force has to leave New Zealand for other quarters. Mr. N,ash: Those questions have been taken into consideration.

Replying to another question asked by Mr. Coates, the Minister said that the transfer of men from public works to defence occupations would automatically mean a scaling-down of expenditure on public works. Mr. Coates: Do you contemplate paying the men out of the public works account, or out of the defence account?

Mr. Nash: The surplus funds from any account may be transferred to defence.

The Minister of Public Works, the Hon. R. Semple, said that all the men needed for construction work at the training camps had been made available by the department. Private enterprise had undertaken work where tradesmen were' required. That was because his department had not the tradesmen for the job. The work at the three main training camps, Trentham, Burnham and Papakura; was well under way and he hoped to have the tradesmen withdrawn by the end of the present week. Future Training Mr. W. J. Poison (Nat., Stratford) said that the figures seemed to show that between 15,000 and 10,000 men would be in camp by March 31 next. It was evident that the training of the army was not going to be as rapid as it was at first thought. He asked the Minister whether the number of men it was contemplated training was sufficient for the protection of New Zealand alone.

Referring to taxation, he said that evervbodv had to make some sacrifice and it was proper to tax luxuries. “This is only the first dose of medicine,” he added. “We will get something stronger and much more unpleasant as time goes on.” Replying to the Opposition criticism, the Minister of Finance suggested that the best way to help the Government as far as public works expenditure was concerned was for members to advise the Government of works in their respective electorates that could be postponed. (Government laughter.) Mr. Poison: That is not a fair way to do it. I want to see everybody treated alike.

Mr. B. Roberts (Lab., Wairarapa) suggested that the Government could nostpone the construction of the Rimu'aka tunnel.

Mr. Nash said that if any wasteful work was being done it should be stopped. He had been informed that between 700 and 800 men had been (ransferred from public works for the construction of military camps.