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Waikato Times, Volume 128, Issue 21362, 5 March 1941, Page 4

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DOMINION’S PART i HEAVY WAR EXPENSES FINANCING THE HOME GUARD (By Telegraph.—Press Association) AUCKLAND, Wednesday “New Zealand will be sending more men overseas than it did in the last war,” said the Prime Minister, the Rt. Hon. P. Fraser, in an interview at the conclusion of his Auckland visit. He stated that the Dominion must also maintain defence forces at home on a scale which was not necessary in 1914-18, when it could count on the protection of the Japanese Navy. “We have 25 per cent more men of military age today that we had in the last war and we shall need them all in some capacity,” added Mr Fraser. “We are getting a higher percentage of fit men than we did from the ballots in the last war. The percentage passed as grade A from the ballots of 1914-18 was 34.4 per cent and today, in the first three ballots lor territorials for which the test is substantially the same as for overseas service, 56.8 per cent have been passed as grade A. ‘lt had to be remembered that not every fit man was available as the | Government had to consider the j needs of the essential industrial life lof the country. A proportion of fit | men had to be held back until they could be replaced. The Government had given a great deal of consideration to the importance of freeing postponed men as soon as possible. Meeting War Costs “For the first 18 months of the war it is estimated that New Zealand’s war expenses will have amounted to about £40,000,000,” continued Mr Fraser. He compared this with the first 18 months of the last war when the war expenses totalled £8,000,000. Of the current year’s war costs, up to the end of March, £17,500,000 was to be incurred locally and £20,000,000 overseas. The Government’s policy was to raise as much as possible of the internal expenditure by taxation and expected to obtain £14,750,000 by this means. It was also borrowing, by compulsory loans, and taking measures to avoid inflation. So far the compulsory loans had brought in £9,126,000 and in four months £1,000,000 had been subscribed to the National Savings Acj counts : ,r -small coni tributor^. Every man who went overseas with the army was costing the Dominion j £7OO to equip and £7 5s a week to ! maintain. Local Authorities Help Local governing authorities had been of great assistance in organising the Home Guard and Emergency Precautions Scheme, declared Mr Fraser. The Home Guard had developed very satisfactorily. In the short space of six months, a | Dominion-wide organisation had been set up and nearly 70,000 men enj rolled. j The Government fully acknowledged and appreciated the important part played by local bodies in building up that organisation. The scheme had started from nothing and there was no precedent to follow and no opportunity to draw upon ; the experience of Great Britain. ! They could only learn by their own | experience and perfect their or- | ganisation as they went along. Local bodies had set up hundreds of Home Guard committees to carry on recruiting and give general assistance. Capitation Fee Considered Overseas conditions had caused a shortage of rifles but the Army Department had made a considerable number available and his recent appeal for serviceable rifles should bring in many thousands more. Other equipment had to be improvised by members of the Guard themselves. The Government had undertaken to provide uniforms as they became available. Part of the costs of the Guard was a charge on local bodies, a principle which had been agreed upon when the regulations forming the Guard were framed. After careful consideration the Government had come to the decision that it would be responsible for all the expenditure down to and including area headquarters. Local bodies would be responsible for all expenditure connected with recruiting and other expenses incurred by units, below that of area headquarters. Consideration was now being given to the payment oli capitation grants of Is per head quarterly, for every active member of the Home Guard.