BRITISH POLITICS

Waikato Times, Volume 122, Issue 20502, 19 May 1938, Page 9

BRITISH POLITICS

MEETING OF THE CABINET A STRONGER GOVERNMENT HOME PRODUCTION OF OIL (Official Wireless) (Received May 19, 1 p.m.) RUGBY. May 18 The Prime Minister presided at the first of the weekly meetings of the Cabinet since the Ministerial changes were announced. Mr Chamberlain’s Government is understood to he considerably better. A recommendation in a report published in February of the sub-commit-tee of Imperial Defence on the home production of oil in relation to economic possibilities and security lias been accepted by the Government. In announcing this in answer to a question in the House of Commons, the Chancellor of the Exchequer said provision is being made in the Finance Bill to give effect to a recommendation for an extension for 12 years of the guaranteed preference of 8d per gallon on home-produced motor spirit and Diesel oil for the use of road vehicles, subject to the adjustments recommended by the Committee.

AIR TRANSPORT HELPING THE EMPIRE ROUTES NEW MINISTER CHEERED THE NEW ZEALAND SERVICE (Official Wireless) (Received May 19, 1.30 p.m.) RUGBY, May 18 The new Secretary of State for Air, Sir Kingsley Wood, was cheered in the House of Commons on rising to move the second reading of the Air Navigation Bill, which gives effect to parts of the Cadman report, and increased from £1,500,000 to £3,000,000 the subsidies to air transport. The additional financial assistance to he given on routes outside Europe amount to about £1,000,000, and the greater part will be concentrated on the Empire routes. Some £4,000,000 will be devoted to improving the services on the European routes. Labour Moves Rejeotlon A Labour member, Mr F. Montague, In moving the rejection of the motion, argued that Government aid to firms operating for profit was Illogical and contrary to public interest. Mr A. M. Lyons asked what amount was allowed - the regular service between Australia and New Zealand, and argued in favour of night flying on the Empire services. He said the aim of Parliament was to link up the Empire and bring the longest distances into the shortest time. Captain H. H. Balfour, in reply, said the Government's policy was to temper monopoly with a reasonable amount of competition. Imperial Airways, Limited, was really, a public utility company and was in a better position to function in the commercial world than a Government department. The profits were controlled, hut any 'loss fell on those venturing in this enterprise. The Government was reviewing the question of the Australia-New Zealand service. Sir Kingsley Wood is meeting representatives of the Dominions.