§ 73. Mr. HOLMESasked the Chancellor of the Exchequer whether the money required for the reorganisation of the Navy and Air Force will be raised by way of loan or will be met from the ordinary national revenue?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)I am unable to make any statement on this matter at the present time. I would remind my hon. Friend that the proposals of the Government for making good deficiencies in the Defence Forces have not yet been formulated. Until that has been done, it would be premature to consider whether any part of the cost should be met by loan.
Mr. ALEXANDERIs the Chancellor able to undertake now that he will give information to the House on the policy that is to be followed, when he is submitting the Supplementary Estimate to the House for the new destroyer programme, which is obviously part of the expansion?
§ Mr. CHAMBERLAINNo, Sir.
§ Mr. DALTONDoes the right hon. Gentleman still believe that the Budget should be balanced?
§ Sir P. HARRISHas it not been the practice to pay for naval construction out of revenue and not out of loans.