ECONOMY OF BRITAIN

Press, Volume LXXXIII, Issue 25086, 18 January 1947, Page 9

ECONOMY OF BRITAIN

GOVERNMENT PLANS REVIEW PUBLICATION OF WHITE PAPER (Special Correspondent N.Z.P.A.) (Rec. 10 p.m.) LONDON, January 17. A White Paper setting out Britain’s economic position and outlining Government policy for the coming 12, months will be published next month. The White Paper will be presented to Parliament for debate, and the intention is that its presentation will become an annual event comparable to that of the Financial Budget. It will be introduced in the House of Commons by the Lord President of the Council (Mr Herbert Morrison), who recently said it. would be an “economic inquest on the nation.” The White Paper at present is in a preliminary form. It will survey Britain’s resources in manpower and materials, wealth and national income, and will give a broad outline of Britain’s industrial requirements. Overseas trade will be set out and the balance between imports and exports. There will be discussion of the Government views of trade problems. In preparing the White Paper the Government has been having discussions with the Joint Industrial Advisory Council. This is representative of both employers and trade unions. Already the Government has discussed wages with it, and an agreement has been reached to publish a White Paper on the question. This will be separate from the economic White Paper and will outline a plan for linking Wages with production. Particular importance will be attached to wage trends and the attempt to stem the drift towards inflation. It is understood that no general wages policy is contemplated to enforce a national basic wage, but the intention is that there should be consideration by both sides in industry with a view to reaching agreement on wage developments. The general view is that a stage has now been reached when any further increase ♦in wages might be offset by a corresponding rise in prices. In certain industries, however, wage increases may be desirable. This is because they are undermanned either from lack of attraction or because conditions require improving in some of them. In the cotton trade, for example, bottlenecks are developing because of shortage of workers. What has to be guarded against, however, is the possibility of rises in wages in these lagging? industries being followed by a demand for increases in other industries, resulting in a general rise, thereby leaving the over-all position much the same, but aggravating the trend towards inflation. This is regarded as one of Britain’s major economic problems which can only be solved by a common policy.. It involves a change in attitude from the past, when continual fear of unemployment caused various individual industries to make the best wage bargains they could for their own workers. By keeping wages in general in check, but improving those in undermanned industries, it is hoped that production will be speeded up, especially that of basic and export industries.