"CLEARING ROAD FOR MORE AND BETTER PRODUCTION"

Bay of Plenty Times, Volume LXXVIII, Issue 15117, 28 October 1949, Page 3

"CLEARING ROAD FOR MORE AND BETTER PRODUCTION"

Mr Morrison Defends Britain's Proposed Economy Measures

TWO-DAY DEBATE NOW NEARING ITS CLIMAX

(Rec. 8.10 a.m.) London, Oct, 27. When the debate on the British Government's economy measures was resumed in the House of Commons today, Mr Herbert Morrison announced that other cuts would be made, in the light of reviews now being carried out in the various branches of public expenditure. Mr Morrison was replying- to Opposition criticism that the proposed cuts were not big - enough and he challenged them to say what additional economies they would have made.

He added that the Government would not adopt the policy of deliberate deflation such as that adopted in the economic crisis of 1931. Such a policy would damage the well-being of millions of people. Britain's troubles could not be solved by such an orgy of cuts and the Government's proposals were intended to clear the road for more and better production at lower cost, which was the real remedy. For the Opposition, Sir John Anderson, a former Chancellor of the Exchequer, said it was vital to restore international confidence in sterling and the first necessity was to sweep away a world of illusion. Ministers had now made it clear that the productive effort of the country had been inadequate but Sir John attributed the blame to lack of leadership, not the workers. Sir John criticised the Prime Minister for saying that the people would not forget how much better off they were under the present Government. The fact was, Sir John said, was that they were enjoying only temporary advantages, which included gifts from overseas. He denied that the choice before the Government was between a policy of drastic deflation and devaluation. It was a mistake to suppose that there was no middle course. The two-day debate is now reaching its climax and the closing speeches by Mr Churchill, for the Opposition, and the Prime Minister, were due to be made shortly after this report was sent. A Parliamentary correspondent understands that Mr Morrison's references to further economies in national expenditure applies to a continuous review, which is taking

place in all Government departments. Economies will be effected from time to time in departmental estimates and the budget. No statement comparable to that made on Monday by the Prime Minister is to be expected between now and the next budget. Workers Defer Wages Claim Increase Of Sixpence,; An Hour (Rec. 8.25 a.m.) London, Oct. 27. Building workers in Great Britain decided at a union meeting today to defer their claim for a wage increase of sixpence an hour, though they expressed the opinion that present wage scales needed a review. The votes cast in favour of this decision represented nearly 400,000 workers. Grant Of 8,000,000 Dollars Purchases Of American Tobacco (Rec. 8.30 a.m.) London, Oct. 27. Great Britain was today granted 8,000,000 dollars under fresh allocations of Marshall Aid, to finance big purchases of American tobacco. The Economic Co-operation Administration said the tobacco would be delivered early next year.