British Aim Is Growth Without Inflation

Press, Volume CIII, Issue 30536, 3 September 1964, Page 23

British Aim Is Growth Without Inflation

(N .Z.P. A.-Reuter—Copyright)

LONDON.

Britain’s three major political parties are all pledged to Keep the nation’s economy growing without inflation. But they disagree over the way this should be done.

I One point common to the Conservative, Labour and Libe*al policies is that the basis for expansion must come from gleater modernisation of industry and a fresh look at the posabilities of the “scientific revolution.”

But they differ on the ; tie to be made of rcon<nic planning, hew to aoieve a national inccfces policy, and practical ways of giving industrya shake-up. Sir Alec Douglas-Home's ConseVative Pary has alreadj set up i National Economic Development Council whth links tie Government vith the nanagement side oj industry and the trade inions. This council sei a target of 4 per cent a sar for the nation'! anniul economic growth from 1961 to 1966, and had prodiyed a number of surveys on how this can be achieved. The Conserfctives say that expansion should be achieved through this ype of co-opera-tion between management and trade udons, which they describe as planning by consent.” They havi also tried to work out an incomes policy by setting ap a National Incomes Commission in 1962. But the unpns have not been represented on this body since January 1963. Nevertheless, Sr Alec DouglasHome’s ptrty believes that the commission plays an imoortant rde by reviewing pay claims aid focusing public Opinion m the need to preent the* from causing a big ise in casts and prices. Key Sectors The Conservatives are ronglyl opposed to further itionalsation of industry, ad thijk that key sectors can b«t bi encouraged by Gov-

ernment support for research and development. Mr Harold Wilson’s Labour Party would put greater stress on planning economic expansion.

A Labour government would set up a National Industrial Planning Board to work out targets for individual industries and direct this expansion to areas where labour is available and new work is needed. The Labour Party argues the need for a fundamental review of economic policy so that expansion can be maintained at a steady rate without leading to export-import crises. It believes that it can achieve a ‘‘planned growth of incomes” through co-opera-tion with the unions, and by preventing other sources of income from rising more steeply than wages. A Labour Government would renationalise the nation’s steel industry, create a publicly-owned national water undertaking, and legislate for all urban building land to be taken into public ownership. It would enlarge the National Research Development Corporation to stimulate research and get new developments under way in industry. Labour Party leaders have recently made it clear that they would introduce early legislation to prevent the domestic car industry from being controlled from overseas. Five-year Plan Mr George Brown, the party’s deputy leader, has described this industry as being “critical to the planning of the economy.” He said in a recent speech: “If you cannot

control the ultimate decisions in that area, then a planned economy is going to be just an empty phrase.” He was making specific reference in his speech to the acquisition by the Chrysler Corporation of America of a substantial minority holding in shares of the British car firm of Rootes. Mr Jo Grimond’s Liberal party is opposed to further nationalisation, but believes that co-partnership schemes should be encouraged through private industry. It proposes a five-year plan, with one-year plans to implement it, to achieve a longterm national economic growth rate of 5 per cent a year.

The Liberals urge the need for the creation of a Ministry of Expansion to make better use of the nation’s resources, and say that both national and regional planning bodies should be set up. Mr Grimond’s party would tackle the need for an incomes policy by strengthening the National Incomes Commission and extending it to cover working hours and social benefits, as well as wages and salaries.