FINANCING THE WAR.

Manawatu Standard, Volume LX, Issue 134, 7 May 1940, Page 6

FINANCING THE WAR.

EXTRA TAXATION LIKELY.

Per Press Association. AUCKLAND,_ May 6.

“The financial situation is receiving the attention of .the Government at present, and relative methods of turnisliing 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 (Hon. P. Fraser), in an interview. . “To meet extra expenditure, war taxation measures were taken last September,’ the Premier 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 suni .being made up as follows: Navy £1,50(1000, Army £25.000.000, Air Force, £6,000,000. ■ ; ,

“Of this total, £l3 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 bv the British Government, according to arrangements entered into between the two Governments. There were no other feasible means of making that provision.” y ■ ", '■ C. .