HOME PRODUCTION OF FOOD

Press, Volume LXXXIII, Issue 25269, 22 August 1947, Page 7

HOME PRODUCTION OF FOOD

Increase Planned Of 20 Per Cent.

MR MORRISON ON CRISIS

(N.Z. Press Association—Copyright) LONDON, August 20. The Minister of Agriculture (Mr Tom Williams) would to-morrow announce the biggest expansion programme for agriculture ever launched in peace time, said the Lord President of the Council (Mr Herbert Morrison) at a press conference. “The economic situation is getting graver,” he added. “We shall have to face worse things before we are through. The most pressing problem is the overseas balance of payments. We, and other countries all over the world, even in the Americas, were caught at an awkward stage, and our post-war reconstruction is threatened by the prospects of a breakdown m monetary exchange. “We have to adjust ourselves in the tace of these circumstances and we are doing it as fast as we can. We cannot do everything at once. We are Coing plenty and we are going to do plenty more.” Mr Morrison said the five main' lines for attacking the problem were: (1) A great increase in the production of essentials such as coal, food, steel, and clothing. (2) An expansion in the value and \olume of exports to buy essential imports. (3) A reduction of unessential or postponable consumption. (4) A reduction of unessential or postponable investment expenditure. (5) An adjustment of the overseas burden.

Coal and Exports He added: “It begins to look as if we have stopped the rot in coal, but I am not going further than that. That is a < milestone, an achievement, and a hopeful point in our progress in the vital fight for raw materials.” Britain’s total exports for July of £ 110.300.000 represented the highest monthly value ever recorded, and unemployment was at its lowest in peace time since reliable statistics began. The July exports compared with £93,100,000,in June and a monthly average in 1946 of -£ 76,000,000. July imports totalled £179,200,000 against £153.800,000 in June and a monthly average of £108,000,000 in 1946. Under British chairmanship the Paris economic conference had reached substantial agreement on a constructive joint proposal for European revival, going further than anything achieved in the 20 years between the wars. The building up of British coal stocks was several weeks ahead of the target. Ruhr coal production, under Britain’s management, had reached the highest post-war level of nearly 240,000 tons daily. Mr Morrison said that the value of British credit and currency and the prospects of getting the cooperation needed from others depended on how far Britain could convince others that she meant business and that it would not be too much longer before she stood on her own feet. This meant a big further effort, and the Government would press all people to do an extra bit to the utmost limit of the available tools and material, even if this meant working longer hours and getting down to something less easy but more useful.

The sooner everyone faces this the sooner we will be out of the wood,” he added.

Target in Agriculture The Minister said that the agricultural target was at least an extra £ 100,000,000 increase in the net output over the next four years. That meant about 20 per cent, more from British land to save dollars. The expansion plan would be announced to-morrow. Some people were saying that the Government was not really planning and was not giving a lead. This really was not fair.

In many of the pits the miners had not carried out their bargain to cut more coal each day in return for the five-day week, though absenteeism had teen reduced. “We need a fresh effort to man the pits, making full use of Polish recruits,” he said.

It would be a mistake to assume that Britain would be unable to resume exporting coal to Europe as eariy as next year.

The Government was reviewing further overseas markets. “We must Keep up our quality in exports, but we cannot sell the world as much as we must without the extension of ’utility’ lines. We do not want to be in the position of selling the world too many unessentials, especially in these days of import cutting. We want to be a workshop from which the world can obtain the machinery and equipment it needs for reconstruction and recovery. The central economic planning staff was combing the investment programmes to see what could be postponed. “The postponement of postponable investment will greatly reduce the strain on manpower, steel, coal, and resources generally, and it will give an impetus towards the export target.” Mr Morrison concluded: “It is a waste of time talking about British recovery without talking about European and world recovery.”