WAR COSTS

Wairarapa Times-Age, 11 March 1940, Page 6

WAR COSTS

OUTLAY OF 33 MILLIONS NEXT YEAR address by finance MINISTER BIG ADDITIONS TO TAXATION NECESSARY. APPEAL FOR LOANS FREE OF INTEREST. (By Telegraph—Press Association.) WELLINGTON, This Day. New Zealand’s financial problems in relation to the w<)i- were discussed by the Minister of Finance, Mr Nash, in an address last night. He made it clear that far greater sacrifices on the part of the people, could be expected in the very near future. After taking into account the unexpended balances of defence votes transferred to the War Expenses Account, the special war taxation and contributions by war of gifts and free-of-inter-est loans, Mr. Nash said a further £1,610,000 would be required to meet the cost of the armed forces up to the end of this month. He hoped this shortage would be covered wholly or in part by gifts or interest-free loans. The estimated cost of New Zealand’s armed forces next financial year was £33,000,000, the amount to be financed in or from the Dominion being £13,000,000. Special taxation would provide £3,500,000, leaving approximately £9,500,000 to be raised by additional taxation, by borrowing and by other means. ■ Expenses overseas, including the cost of the full initial equipment for the New Zealand Division, would be £20,000,000. This would be provided on a loan basis under financial arrangements with the United Kingdom Government.

Mr. Nash said the Government believed in the essential soundness of the “pay as you go” policy, though it recognised its practical limitations. He appealed to the public to volunteer their savings without interest as others had already done to help the Government in financing this country’s war effort.