HEAVIER CUTS FORECAST

Press, Volume LXXXIII, Issue 25275, 29 August 1947, Page 7

HEAVIER CUTS FORECAST

Press Comment On Measures STATEMENT SOON ON EXPORTS (N.Z. Press Association—Copyright) P- 1 ”-* LONDON, August 28. ‘More and possibly heavier cuts than those announced yesterday way be expected in the next fortnight, says the political correspondent of the “Daily Mail.” Reuters says: “The new restrictions on hotel and restaurant meals are less drastic than the public at one time feared. The maintenance of the domestic meat ration at Is a week depends on Argentina’s reaction to Britain's decision on sterling convertibility.” The Parliamentary correspondent of “The Times” says: “The Government statement is not the whole of the Government’s economic policy for meeting the exchange crisis, or even the most important part. A statement on export policy to be made in the second week in September will mark a further very important stage of the emergency programme on the positive side. It will show how industry is to be harnessed to produce more for export.” The “Daily Herald” in a leading article says: “The reason for the cuts is that they are unavoidable. They must be made because we have not yet had time to build up our production sufficiently to pay our way in the world and to buy all we need and want from other countries.

“Taking each item by itself, it might be argued that the total saving will be only small; but if the same argument were employed about every item we would end by making no savings at all. Unless those realities are understood and unless we are able to increase output considerably the Government will be impelled to introduce much more grievous cuts.” “Another Postponement” “The, Times” in a leading article says; “Never has a Ministry fallen so far short of pent-up expectations so oiten as Mr Attlee’s. The Government announcements of yesterday have all the air of another postponement of the critical decision.

“For the second time at least, the British people were prepared for a most rigorous demand for sacrifices during the lean winter ahead. Instead, they have again been given a confused account of several restraints which cannot be avoided, but for a positive programme for industrial recovery they must wait. The time has arrived for protest. “The ‘positive side of the pro* gramme’ is still a matter for interminable negotiation with the trade unions. Nothing was said yesterday’ about physical suppression of wasteful activities or the incessant -inflationary pressure which breeds and encourages such activities. "The Government’s reluctance, for political reasons, to make plain the deprivations in terms of houses, schools, factories, and other necessities forgone, is as obstructive as it is understandable. This bit-by-bit approach to the heads of the policy which Mr Attlee announced three weeks ago simply means that the goodwill of the people is being dissipated. ‘‘There has been far too much pessimism about Britain’s future. There is no reason why a fresh foundation cannot now be laid. But the preface must be a real programme of retrenchment and effort.” Effect of Petrol Cut The motoring correspondent of the “Daily Mail” says: “The abolition of the basic petrol ration will deny hundreds of thousands of motorists any use of their cars. Theie will be no more week-end trips, motoring holidays, or going to golf or races by car. “There will be no more black market petrol because those not entitled to petrol for business will run too great a risk if they venture on the road. The police will be able to demand from any car user an explanation of his right to be wherever he is. “Motor coaches, hire cars, and taxis will not*be affected because they run on special transport users’ allowances. “The motor industry will find it easier to export 75 per cent, of its output, as the Government is urging, with the less keen home demand.” The “Daily Telegraph” says: /The petrol cut will be disastrous to used car dealers. Many smaller dealers holding heavy stocks of pre-war cars will be especially hit. One Midlands dealer said the cut would knock £2OO or £3OO off the second-hand price of £7OO or £BOO asked for a popular 10-horse-power car priced new at just over £400.”

Commercial Groups’ Comment Other comments on the new cuts included:— The Hotel and Restaurant Association of Great Britain: “Inconvenience and hardship will result to the travelling public and those having to eat and sleep away from home. The saving will be infinitesimal compared with the total consumption of rationed foods. The restrictions are bound to jeopardise the expansion of the tourist industry.” , x . . _ . The Caterers’ Association of Greqt Britain: “The cuts mean less food for the public who have to eat out, while the saving will be half of 1 per cent, of the total rationed food consumpU< A spokesman for Lyons, Ltd.: “Any further worsening of the general food position will cause a serious situation. These severe cuts must cause haraship to many of our customers.” The secretary of the National Federation of Meat Traders: "The outs mean that the meat ration to butchers will be lower than during the war. Thomas Cook and Sons: “The lack of currency for foreign travel will end winter sports. Many potential travellers will have their deposits returned. Resorts like the Chann® Islands, the Isle of Men, and Eire should benefit considerably. • The Mayor of Weston-super-Mare. "We have a better background for holidays in this country than anywhere abroad. I don’t s f e v, why shouldn’t make holidays at home just as attractive.” The joint standing committee °* the British, motoring organisations; We will have to take account of what the Government proposes to do and ensure that motorists who use their cars for business —the great majority of private car users to-day—continue to receive an adequate ration.