ITALY’S 5-YEAR PLAN ATTACKED

Press, Volume CIII, Issue 30528, 25 August 1964, Page 11

ITALY’S 5-YEAR PLAN ATTACKED

(N.Z.P.A.-Reuter) ROME. Controversy has arisen over a draft for Italy’s first five-year economic development plan, drawn up by Signor Antonio. Giolitti, Socialist Minister of the Budget, in the previous Moro centre-left coalition. Signor Aldo Moro’s first coalition took office in December on a platform of social reform, of which the Economic Plan was to be one of the main features. Its elaboration fell to Signor Giolitti, as Minister of the Budget, the senior of the three Italian economic ministries, Budget, Treasury, and Finance.

But his draft brought immediate opposition from the world of industry and commerce as well as from sections of the Christian Democrats, the main coalition party. Right - wing newspapers spoke of “Bolchevisation” and “Socialisation” of the economy, and of an attempt to introduce a planned economy along the lines of Jugoslavia. They recalled that Mr Giolitti had been a Communist, who only broke with the party after .the Hungarian uprising of 1956. Shopkeepers’ associations threatened to stage lockouts and demonstrations if the provisions of the plan were put into effect.

In fact, the plan did not get as far as being officially discussed by the Government, for just when Mr Giolitti had finished drafting it, the Moro Government fell, on June 26. But it was discussed by Mr Giolitti with Government officials, economic experts, and with representatives of industry, commerce, farming, and trade unions. Two Parts

While covering the years 1965 to 1969, it is intended to be revised each year for the next five years ahead. This first draft is divided into two parts. Part I gives a general outline of its aims and methods, while Part II sets out their detailed implementation.

Only Part I has been published. It is difficult, therefore, for the individual businessman to assess exactly how he will be affected—if the plan is now ever adopted. Part I of the plan states that Italy shall have a mixed economy. Industrial production, it estimates, will rise by 4-2 per cent a year, and agricultural production by 3 per cent a year. Some 1,500,000 new jobs will have to be created in spheres other than agriculture. In agriculture, there will be 800,000 fewer jobs by the end of the five years.

The balance of payments will run at a deficit for the next few years, but should be in equilibrium by 1969. Exports should increase by 14 per cent a year and imports by 8 per cent. Controversial Points

Points which are controversial to businessmen include the following:— 1. One of the plan’s objec- , tives is “the elimination of positions of private control of the market.”

2. Large firms above a certain size must inform the Government of their investment plans. 3. The Government’s interministerial Committee for Economic Planning will have a special “Commission of Vigilance” to watch over share dealings •in private companies quoted on stock exchanges. 4. In retail trading, the present licences for shops and small traders are to be abolished on the grounds that this system is too anti-competitive. Licences will be granted on a basis of technical and professional proficiency only. To cut down costs in the distribution network, the State will finance the establishment of a chain of super- • markets. Different sections of Part I of the plan make proposals for reform in individual sectors of the economy, such as housing, health, scientific research, transport, industrial development, and agriculture.