WAR FINANCE

Wairarapa Times-Age, 31 May 1940, Page 5

WAR FINANCE

WHAT THE GOVERNMENT INTENDS

MR NASH OUTLINES POLICY

DEMAND FOR ALL-ROUND SACRIFCE.

MAXIMUM TAXATION.

(By Telegraph—Press Association.) WELLINGTON, This Day.

“Whatever money is required for the prosecution of the war should be made available to the Government right away,” said the Minister of Finance, Mr Nash, during the debate on the Emergency Regulations Amendment Bill in the House last- night. He said the Dominion had to pay for the war as it went on, and he indicated that taxation measures might be introduced to ensure that no profit should be made'by any person.

“All the forces, physical and material, in this country, that can be used for the prosecution of the war effort, come completely and entirely under the control of the Government. There is no limitation to it,” said Mr Nash; “That includes finance, too, and it includes a little more in the general direction than just equal sacrifice. The workers must surrender conditions they have fought for for 40 or 50 years. No action and no rule whatever that could in any way retard the production and dispatch of things overseas will be allowed to continue.”

An Opposition member: “What about the Arbitration Court?”

Mr Nash: “Every rule, regulation, and law in the way will come out of the way for the period of the war.” If the working section of the community was wiling to make sacrifices, it was agreed, said Mr Nash, that no one outside should profit. The worker was sacrificing his conditions. Those making profits should sacrifice their profits also. It was easy to talk about sacrificing profit during the war, but nobody in the Dominion in the present crisis should receive anything more from the community than was needed to sustain their obligations and to meet their commitments. “NOBODY SHOULD PROFIT.” War could be carried on only by the things that were in stock before it began or produced during its currency, the Minister continued. Why should they put it on the soldier when he returned to pay? The man who went away to serve his country should not be worse off than the man who stayed at home. That meant, in effect, that nobody should profit because of the war—not super or extra profit. “That would take a lot of working out, and we might have- taxation measures to ensure that that will be brought into being to the maximum, said the Minister.

Mr Lee (Independent, Grey Lynn): “Could that be done under the regulations?”

The Minister: “Yes.” Replying to the Leader of the Opposition, Mr Nash said that there would be no further legislation. When the regulations were drafted they would be submitted to Parliament for discussion, if Parliament was sitting. To further questions, however, the Finance Minister stated that taxation measures would be submitted to the House in the ordinary way. The Minister said that Australia s finance regulations provided for the taking of foreign exchange and securities and the taking of control of all financial issues. , Mr Holland (Opposition. Christchurch North): “Have they done if. Mr Nash: “No, but they have taken the power and we are going to do the same. Too many companies have been registered in this country to get money oiit of the public without good work.” If the Government took the power to fix interest rates, it had also to take power to control the money available, said the Minister. It was not enough to fix interest rates and to let the other people say, 'You cannot have our money.’ New Zealand should not ask the United Kingdom to equip and maintain the Expeditionary Force. Britain had enough load to pay. The Dominion was not being kind to Britain by giving it support, for he believed'it had more to lose than Britain.