WAR BORROWING

Wairarapa Times-Age, 3 October 1940, Page 6

WAR BORROWING

PROCEDURE EXPLAINED BY MR NASH COMPULSORY LOAN “GOVERNMENT NOT BUYING PATRIOTISM.” SAVINGS SCHEME PROMISED. (By Telegraph—Press Association.) WELLINGTON, This Day. ’ “We are not going to buy patriotism this time,” said the ! Minister of Finance, Mr Nash, ■ when explaining the proeed- ■ ure to be adopted for the raising of the £8,000,000 internal E war loan. The Minister was . j referring to the rate of inter- . est paid on a compulsory war : loan raised during the last ' war, and added that it was ' not proposed this time to issue loans free of income-tax at a high rate of interest. He added that he expected to re- . ceive a fairly large sum from the nat- . ional savings scheme which would be announced shortly and would provide an opportunity for persons who would not have to contribute to the war loan to help the war funds. Referring to the £8.000,000 loan, the Minister reminded members that it would be free of interest till October 1, 1943, and would bear 2] per cent for the next 10 years. He pointed out that the first £375 of taxable income was exempt and that a single man . would have to have an income of £575 to be required to contribute anything to the loan. Mr Goosman (Opposition, Waikato): “How many tax-payers will that cut out?” The Minister: “I am not sure, but it would be a good many. There will certainly be no hardship on the lower levels.” Alongside the war loan, the Minister continued, there would be the * national savings scheme, details of which would probably be announced in a week or so. It would provide for the section of the community which did not normally subscribe I to any loans, and he thought the money would come in all right. Outlining the procedure to be adopted with the war loan, Mr Nash said that if the Commissioner of Taxes noticed that there were shortages after the closing date he would advise the Minister, who would have a notice published in the Gazette. No names would-be mentioned, and if the persons concerned then subscribed, there was nothing more to worry about. If any persons felt they could not subscribe, they would be able to take advantage of a procedure which was being worked out to provide for appeals to a committee to be set up by the Minister. Mr Holland (Opposition, Christchurch North): “How will a man know the Gazette notice applies to him, if his name is not mentioned?”/ Mr Nash: “He will know whether he is liable or not, in his income tax figures. Persons are only invited to subscribe now, but I am sure everyone concerned will accept the invitation.” Mr Holland: “It’s a big-stick invitation.” “I am quite certain the money will come in,” Mi' Nash said, “because nothing has been more obvious since the war started than the desire of all / sections to give of their best.” Mr Goosman: “If you are satisfied 'g. the money will come in, why have r compulsion?” Mr Nash: “That is so that it will be fair to everyone. lam also hopeful that the national savings scheme will produce a fairly large sum.” Mr Holland: “Is there any compulsion in that?” Mr Nash: “No. There won’t be any compulsion anywhere, if they pay. “There will be difficulties for some of those who are to subscribe to the loan,” the Minister said. “The question as to what can be done to help them is now under consideration, but' to the maximum that is possible the loan should be subscribed out of current income. To the extent that this might retard production or create hardship we will take steps to help them along the way.”