Wilson would return —if he were asked

Press, 12 October 1976, Page 8

Wilson would return —if he were asked

NZPA London The former British Labour Prime Minister. Sir Harold Wilson has said that he would be prepared to help to govern the country again — if asked. “You can never reject the call,” Sir Harold said in the British Broadcasting Corpor-, at ion’s radio programme' “Speakeasy .” He added: “But my God. they would have to be in an awful mess, wouldn't they, if thev wanted me back?” Commenting on widespread speculation about a coalition government being! formed in Britain — the! London betting firm of Lad-1 brakes is offering even-! money odds on this occurring before the end of the; year — Sir Harold said: “in! theory, that's an attractive idea — the best men and women of all parties pulling together In fact, coalitions in this country in! peace-time have usually meant the lowest common, denominator of agreement; on fudged issues.” Britain's worsening predicament has been emphasised by Lord Cromer, a former Governor of the Bank of!

i England and British Am-| (bassador to the United ! States, who in a radio inter-i I view, issued a warning that ; the nation might well face) > food rationing if it defaulted! lon its international debts, j NZPA-Reuter quotes Lord ■ Cromer as saying that if for-; eign suppliers refused to accept sterling, there would) 1 be a shortage of essential! 1 goods, "and, obviously, that ' could mean rationing.” The Earl’s warning was 1 ' one of the more gloomy j' forecasts being aired as the ' House of Commons prepared) to return from its summer! recess. On the agenda for), the first day was an economic debate likely to prove , painful for Mr James Callag-| han’s government. I It is generally expected | that the Government will , soon introduce austerity); measures even harsher than!] those imposed last week, but , in deciding what steps to), take, the Government isl squeezed between Con-i, servative insistence on less , ; public spending and the), (Labour Party Left-wing’s;, avowal to resist any cuts in), welfare service. i, It is the increasing |s

I influence of Labour’s Left, wing that has persuaded many Conservatives that the [Government may soon split [apart and fall from power. i Last week’s austerity j measures failed to have any real restorative effect on I sterling. The principal measure was an increase in the Bank of England’s lending rates to a record 15 per [cent, which had the effect of : raising the cost of all mort)gage and other borrowing, and of generally squeezing consumer spending. i It is believed that still (more austerity is necessary | to persuade the International Monetary Fund to grant the ! $3,900M standby loan which Britain is seeking. ! The main alternatives for 'the Government seem to lie between increasing consumer taxes or making cuts in the $17,125M (13.4 billion doli lars Aust) now being bor- ; rowed annually to maintain ! public services. More consumer taxes 'would push up the inflation j index and jeopardise the I social contract — the deal under which the trade unions make only moderate ! wage demands in return for i socia 1 benefits.