NEW AUSTERITY SHOCKS

Ashburton Guardian, Volume 70, Issue 7, 19 October 1949, Page 5

NEW AUSTERITY SHOCKS

CUTS EXPECTED SOON STATEMENT NEXT WEEK i CN.Z.P. A.—Copyright) (Rec. 9.10 a.m.) LONDON, Oct. 18. Members of Parliament returned from the summer vacation today braced for new austerity shocks. Mr Herbert Morrison, Lord President of the Council told the House of Commons that Mr Attlee intended to makje a statement next Monday on the Government’s economic and financial proposals. '"JO.! \

Mr Morrison added: “The Prime Minister is anxious to make a statement as soon as possible, but the House will appreciate that there are a number of, departments involved which must be properly consulted, if proper and firm conclusions are to be reached.” ’

Reuter’s political correspondent says the Government’s postponement of the “cuts” announcement probably means that some Ministers are putting forward objections or alternative suggestions to proposed economics in their departments. It is also possible that others feel that the economy programme does not go far enough, and they may be advocating other methods of saving. Before Mr Attlee makes his statement to the House of Commons there will ni>w be first a big meeting of the Parliamentary Labour Party behind closed doors to-morrow, at which Mr Attlee and Sir Stafford Cripps are certain to outline the general extent of the coming cuts, without going irfr to specific details; second, a further meeting of Cabinet’s economic policy committee which is framing the cuts, and third, at least one and possibly two more full Cabinet meetings at which ithe cuts will be rediscussed. There are moves to secure a f.ull House of Commons debate on the announcement next week. If this takes place on Wednesday or Thursday, it ■would give members virtually two days in which to consider details of the announcement, which will be a comprehensive one. The framing of the cuts has been a tremendous task. Several hundred million pounds are involved, and most, if not all, Government departments will be . affected, although it has been- agreed not to touch defence except for administrative economies, the social services or housing. Direction of labour is not likely to be resorted to in order to step up the export industries. The Government favours the removal rather than tfie reimposition of controls.