EFFORT TO CHECK INFLATION

Ashburton Guardian, Volume 66, Issue 250, 3 August 1946, Page 5

EFFORT TO CHECK INFLATION

WORKERS CONFER WITH EMPLOYERS DISQUIETING TRENDS 1 " (N.Z. Press Association —Copyright.) (Rec. 9.30 a.m.) LONDON, Aug. 2. The National Joint . Advisory Council of Employers and Trades Union Leaders, at present meeting in London, is considering measures recommended by the Government to check inflationary trends. One proposal is that a national Avage policy be adopted Avhich Avould, in effect, freeze Avages at the present level and permit increases only as a result of higher output. A second proposal, Avhich is stated to have the support of union leaders, is that more consumer goods, particularly clothing, furniture, household equipment, cars and sports gear, be directed to British shops. ■, ;; It is contended that, if the British people had more things to buy with their money, there Avould be more inducement to Avork harder, although it is recognised that, any diversion of consumer goods to the home market must mean less goods for export. Point is given to. these discussions by the latest Ministry of Labour returns, which reveal that during the last six months 5,400,p00 British workers shared Avage increases totalling more than £1,750,000 and, in addition, the fact that income tax reductions left a further £3,000,000 in the pockets of 11,000,000 people. This, it is considered, is one of the chief reasons for the present spending boom, •which in the absence of consumer goods is tending to concentrate upon gambling and second-hand goods at inflated prices. The fact that the Gvernment made specific recommendations to the Joint Advisory Council may indicate that the Chancellor of the Exchequer (Dr. Hugh Dalton) lias had second thoughts about his recent prediction to the Bournemouth Conference that the danger of inflation in Britain has passed. Another disturbing trend revealed by the Ministry of Labour is that, although wages are uoav 74 per cent, higher than in 1938, the hourly output in almost all industries is decreasing.