NEW ZEALAND’S PART

Waikato Times, Volume 125, Issue 20910, 15 September 1939, Page 7

NEW ZEALAND’S PART

BRITAIN’S WISHES FOLLOWED NO OVERSEAS FORCE AT PRESENT ACTING AS SOURCE OF FOODSTUFFS (By Telegraph—Press Assn.) WELLINGTON, Friday. “ I wish to inform the House and the country that His Majesty’s Government in New Zealand has since the outbreak of war been in consultation with His Majesty’s Government in the United Kingdom as to the means and methods by which this Dominion can best assist in the common cause,” said the Acting-Prime Minister, the Hon. P. Fraser, in a statement made in the House of Representatives this afternoon. “At our request we received from the British Government a detailed and most helpful outline of the position, indicating the measures which in their opinion it would be most appropriate for this Dominion to take. I wish to state now as explicitly as possible that every single suggestion that has been made by the British Government has been accepted and agreed to by the New Zealand Government, and is being put into operation as rapidly as possible. Indeed many of them have already been anticipated and put in hand before the receipt of the British Government’s suggestion.” Referring to the special military force being recruited at present, Mr. Fraser said the first section of these troops would go into camp about the end of this month, and after a period of training would be followed by further bodies of men, according to a regular pre-arranged plan. There was no intention, nor was it the desire of the British Government, that this force should be despatched overseas immediately. At the same time, the force would as soon as possible be made and held ready to meet the situation as it developed. As far as the Air Force was concerned, apart from the measures necessary for the protection of the Dominion, the principal object in the meantime was the training of pilots, observers and airgunners for the Royal Air Force, quickly and in as large numbers as possible. whole of the man power of the country to the best advantage, not only for military purposes, but in order to enable the Dominion to continue to play its part as an important source of foodstuffs and primary products. Clearly the maintenance of the farms of New Zealand would be as essential to the Allied cause as the provision of fighting forces. STEPS TO MEET COST OF WAR SPECIAL EXPENSE ACCOUNT NEEDED FINANCE FROM REVENUE AND TAXATION (By Telegraph.—Press Association.) WELLINGTON, Friday. In a statement made in the House of Representatives at 2.30 this afternoon, the Minister of Finance, the Hon. W. Nash, detailed measures which are to be introduced next week in connection with New Zealand’s participation in the war. Mr. Nash said: “ For the Dominion to play a worthy part in the war will involve an expenditure far beyond that provided for in the three votes in the Consolidated Fund and the vote in the Public Works Fund. Thus it becomes necessary to depart from the usual procedure and adopt special measures. “Accordingly, legislation will be introduced empowering the opening of a War Expenses Account, out of which all necessary costs for defence or the conduct of the war can be raised. Provision will be made for the present defence votes in the Consolidated Fund to be closed and the unexpended portions thereof transferred to the War Expenses Account. The War Expenses Account will be financed as far as possible from revenue and additional taxation.

SALE OF PRODUCE GOVERNMENT CONTROL NEGOTIATION WITH BRITAIN PRICE SAFE GUARDS PROVIDED (By Telegraph —Press Assn.) WELLINGTON, Friday “The outbreak of war will upset the Budget estimates in various ways,” said Mr Nash. “The restriction upon the consumption of petrol will involve a decrease in customs duties on that commodity. Customs revenue will also Inevitably be affected by the inability to obtain imports in the same quantities as would otherwise have been the ease. “Proposals will be introduced next ■week. All must share in the war effort, some by personal service in the armed forces, and the remainder by paying for the maintenance of those forces. While additional taxation will reduce the spending power of the people, it may be pointed out that in the circumstances the existing standard of living generally depends on the goods available for consumption. In such circumstances the mere maintenance of money incomes cannot maintain the standard of living. “While the desire of the Government is to meet the cost of war out of revenue as it proceeds, It may not be poslble to do so, and It will In any case be necessary to make provision for a loan authority, which will be submitted for the approval of the House, the loan authority to be used as sparingly as possible. Reserve Bank credit will be used where neces--4 sary f but care will be taken that the use of this credit does not result simply in inflation of the currency, with its harmful results.

Negotiations With Britain “Negotiations with the British 'Government,” said Mr Nash, “for the purchase of our primary products were commenced immediately on the outbreak of war, and are still continuing. The basis of our representation is that the procedure to he adopted should provide that no advantage or profit will accrue to anyone on account of war conditions. “Working on this basis, some thought has been given to—“(A) The price to be paid by the United Kingdom Tor produce from other countries. “(B) The price and procedure to be followed by the United Kingdom when disposing of its purchases from the Dominions. “(G) The desirability of maintaining the Dominion’s trade relations with other countries. “(D) Safeguards to cover advances in prices and other costs of imported commodities; together with—“(•E) Steps necessary to avoid a disorganised marketing system at the I conclusion of hostilities. 1 “If the negotiations are satis- | factorily completed, the New Zealand Government will become the sole buyer In the Dominion of all butter, cheese, meat and wool, and these products will be sold direct to the United Kingdom Government, which will be the sole distributor In the United Kingdom. “Negotiations with regard to fruit and other exportable products will open as soon as the major principles relative to meat, wool and dairy proj duc-e have been decided. Assistance Appreciated “The Government has been assisted in its negotiations by members of the Dairy Board, the Meat Boarcf, the President of the Farmers’ Union and representatives of the wool industry, and desires to express its sincere appreciation of the spirit of co-peration shown by these organisations, and particularly of their afllmiation that they subscribe whole-heartedly to the llrst principle that no advantage shall be taken of war conditions in sales to the United Kingdom. “Measures will also be introduced to ensure that the Government has full financial control of the resources of the Dominion. The Government has determined to tuse all the nation's resources, personal, material and financial.”