BRITISH DEFENCE

Wanganui Chronicle, Volume 83, Issue 50, 1 March 1939, Page 7

BRITISH DEFENCE

INCREASED BORROWING POWERS PASSAGE OF BILL THROUGH COMMONS REFERENCE 10 BUDGET (By Telegraph—Press Association—Copyright) I British Official Wireless J Received Feb. 28, 5.5 p.m. RUGBY, Feb. 27. The second reading of the Defence Loans Bill, giving effect to the financial resolution passed by the House of Commons last week providing for. an increase to £800,000,000 of the bor-' rowing powers for defence, wasi moved by the Chancellor of the Ex-i chequer, Sir John Simon, in the! House of Commons. Sir John stated that his object in indicating in advance of the Budget the proportions of the total anticipated defence expenditure and the object of all his actions in connection with the defence loan programme, had been to promote confidence by removing uncertainty. He claimed' that his statement last Monday had operated as an encouragement to British trade and finance. Referring to comments on the fact that he apparently proposed to take only £23,000,00 from revenue for defence next year, which was less than in the current year, Sir John said he could say still without anticipating his Budget statement that the Budget for next year must reflect to a certain extent the conditions of the past year. Those conditions, while not those of a marked depression, were certainly not those of a year of great and exceptional prosperity, but all the indications for next year were indications of recovery and it therefore was ex-| tremely likely that the Budget for the year ending March, 1941, would reflect more prosperous conditions than the Budget for the coming year. The Labour Opposition had put down a reasoned amendment stressing the urgency of more effective measures being taken for the coordination of the various defence services, the organisation of supply and the strict limitation of profits. Referring to the question of profits, Sir John said the Treasury was deeply concerned to secure in every practicable way good value for what was obtained for the vast outlay on armaments. He had closely examined with his officials the general system which profits on the contracts were checked and he was convinced that it was a good system. In conclusion, he said the Prime Minister had the confidence of the country, which rightly regarded him as pursuing a policy of peace, towards which the building up of the strength of Britain was a contribution. After Mr. Lawrence had moved a Labour amendment and Sir Archibald Sinclair, Leader of the Liberals, had indicated that his party would sup-' port it, the Secretary for Air, Sir. Kingsley Wood, intervened to refutecharges of excessive armament’ profits. So far as his department' was concerned he claimed that che i methods of financial control available j to the Air Ministry were sufficient ; to enable it to feel reasonably confi-j dent. The contracts it made allowed i no opportunity for exaggerated; profits. In a tribute to the British, aircraft industry, he mentioned that: its prices had ben shown to be in! many cases lower than those of American firms. He deprecated the charges of profiteering against manufacturers, which created bad feeling between employers and employed and discouraged national service. The Labour amendment to the Bill was defeated by 232 votes tc 117 anC the Bill was read a second time.