State od emergency declared in U.K.

Press, Volume CXIII, Issue 33383, 15 November 1973, Page 13

State od emergency declared in U.K.

(N.Z.P.A.-Reuter —Copyright) LONDON, November 14. Britain today began living under a state of emergency and faced tough new credit controls jointly imposed to combat a looming energy and trade crisis.

Advertising lights across the country went out, share prices dropped, and motorists awaited possible petrol rationing after the announcement of the Conservative Government’s new austerity package.

The state of emergency was ordered by the Prime Minister (Mr Edward Heath) yesterday.

It came into effect at midnight and gave the Government sweeping powers to deal with an expected sharp decline in electricity and coal production after union work-

■ to-rule by miners and electrileal engineers. I The emergency was declared against a back- ■ ground of reduced oil supplies from the Middle East and a shock announcement • that Britain suffered a huge ■ £298 million trade deficit,last i month. i The Government stepped I in and raised bank lending ■ rates to a record 13 per cent

land introduced severe new [measures to restrict credit. ! As a first step to meet the energy crisis, all Government departments and Stateowned industries were ordered to cut their fuel consumption by 10 per cent. Restrictions were also placed on display advertising and lighting and commercial firms were instructed to reduce heating. The Government appealed to the public to take similar measures to conserve fuel and said that only essential services could expect special treatment.

The regulations gave the Government authority to introduce fuel rationing, including petrol, to conserve Britain’s energy supplies. It was the fifth state of emergency Mr Heath’s Government had imposed since it was elected to power in 1970. But desperate though it sounds, a state of emergency does not have the same dramatic connotation in Britain as in less politically stable countries. All it means is that the Government is taking authority — with Parliament’s subsequent approval — to make sure things don’t grind to a total halt. Fuel must be allocated to the most vital sectors of British industry, and the Government can, if needed, bring in rationing not only of petrol but of coal, gas and electricity, too. It can "also peg food prices, take over transport to move fuel and other essential supplies and requisition buildings for storage.