TO MEET COST OF WAR

Waikato Times, Volume 125, Issue 20923, 30 September 1939, Page 6

TO MEET COST OF WAR

New Zealanders who were inclined to be appalled by the magnitude of expenditure for war purposes will contrast their position with that of the people of Britain in the light of the emergency budget, and account themselves fortunate. Britain’s expenditure in the current year will be about £2,000,000,000, of which a large portion is to be found from taxation revenue. Income tax at the rate of 7s 6d in the £1 and heavy imposts on “luxuries” such as liquor, tobacco and sugar have been accepted calmly and without complaint. Indeed, the public’s reception of the emergency taxation is the most convincing proof that the people realise the seriousness of their task and are prepared to see it through no matter what the cost may be. When the two standards of living are compared it will be realised that New Zealand is still in a very fortunate position. Still heavier costs may, of course, be involved as the war advances, but given prudent government, there is no apparent reason why New Zealand should not be able to meet every demand that is likely to be made. If the prosecution of the war costs £20,000,000 a year, that is not an impossible sum when compared with the current year’s total expenditure of £75,000,000. Such expenditure would, a few years ago, have been regarded as impossible, and in fact probably is far greater than is wise, but it is an indication of what the country can do when the need arises.

Only a few years ago the business of government was carried on with less than half of the present expenditure, and New Zealand’s duty in the present emer~~:icy is to attack with vigour and realism the non-essential expenditures which have resulted in the swelling of the peace-time budget to such dimensions. Expenditure on the war is expected to be only about equal to recent public works expenditures, and with an increase in production and reasonable export prices the task should be well within the country’s capacity.