"WE DARE NOT FAIL," SAYS SIR STAFFORD CRIPPS

Bay of Plenty Times, Volume LXXVIII, Issue 15116, 27 October 1949, Page 3

"WE DARE NOT FAIL," SAYS SIR STAFFORD CRIPPS

Britain Must Face Simple, Stark Fad Of Expenditure tuts

FALL IN STANDARD OF LIVING AND UNEMPLOYMENT ALTERNATIVE

fV -r a in t rn ) London, Oct. 26. Sir Stafford Cripps ended his long speech in the Hopsq of Commons today on the cuts in national expenditure by everyone in the country to face the simple, stark i act. Unless Britain could quickly produce more and bring costs down, ho said, there would be a tragic fall in the standard of livinp' and widespread unemployment. S The economies were not a prelude to a new attempt to conquer the hard-currency market without which Britain’s industries, standards of living, and, indeed, her civilisation itself must fade and wither away. ~ “We dare not fail,” Sir Stafford said.

He added that the Government was not trying to produce a severe deflation. It had vigorously decided not to take measures which whouJd injure the main scope of the social services, or make any major cut in the food subsidies. , This would cause an inevitable reaction on the policy of restraint on personal income, said Sir Stafford. When he analysed the economies in detail, he said that the Present housing programme would mean that during next year, production would fall from about a yeai to about £175,000. _ Though the policy of full employment might not be enough to cover all employment to occupy everyone, no individual could be guaranteed to be kept in his particular job or trade. The economies to bn made in Government departments would mean a reduction in staff of not less than 10,000 by the end cf 1950, The economies in defence expenditure would include a substantial reduction in headquarters scaff and in the training, maintenance and administrative establishments. The strength of the armed forces by next April would be more than 20,000 below the figure given earlier this year. Sir Stafford emphasised the importance of maintaining their obligations to other countries in the sterling area but said that Britain must now' go slower, whether she liked it or not. She must not overprovide sterling to other countries, either in the form of credit or in the form of releases of accumulated sterling balances. Referring to the reduced programme of dollar imports for 1950, he said that if Britain was obliged to go below this new level, she would be unable to build up the flow of .raw materials needed for full employment. He also announced that he had asked the Governor of the Bank of England to inform the banks and accepting-houses of the importance of their co-operation in fighting inflational pressure and to ask them to help in doing so in their credit policy. The first Opposition speaker,- Mr Anthony Eden, said the Conservatives realised" the vital need for economy and would support any measures, however, unpopular, that were for the good of the country. “But the Government’s proposals draw no relation to the needs of the hour,” said Mr Eden. Their failure to measure up to the very real peril of Britain’s situation, he added, was the calamitv of the nation. Plans “Scratched Together” The proposals were inadequate to counter the risk of inflation and gave no incentive to stimulate production, Mr Eden declared. Instead of preparing plans when they saw that devaluation was inevitable, the Government had just “scratched them together” in the last fortnight, he stated. Mr Eden criticised the proposals in detail. While it was not urgent that Britain’s defence commitments —particularly in the Far East—should be restricted, economics could be made in the administration. For instance, the staff of the High Commissioner in Canada could be reduced suggested Mr Eden. At Home, Mr Eden went on. more could be saved on the Health Service. The proposed charge for preprescriptions could be extended to spectacles, false teeth and artificia 1 limbs.

Food subsidies, he said, could be

progressively reduced, and applied according to peoples’ individual needs. Income tax should be reduced as an incentive to higher production.

Mr Eden ended by describing the Government’s plan as “just one more expedient which would not prevent another crisis in a few months time.” For the Liberal Party, Mr Dyers condemned the Government’s measures as inadequate and unimaginative and said the Prime Minister had missed a great opportunity. _ Mr Churchill is expected to wind up the debate for the Opposition tomorrow and Mr. Attlee will wind up for the Government. Support Of Trades Union Congress (Rec. 8.45 a.m.) London, Oct. 26. The General Council of the Trades Union Congress discussed the Government’s economic proposals today at a meeting in London. It stated that, far from being an insignificant contribution to the solution of the nation’s difficulties, the proposals, if they were vigorously applied, would substantially reduce inflation and encourage the diversion of resources to the export trade.