Left wing warns Callaghan

Press, 8 December 1976, Page 9

Left wing warns Callaghan

NZPA-Reuter London The British Labour Cabinet has resurhed its protracted discussions on cuts in public spending with continued disagreement among the 24 Ministers about the size and nature of the reductions. No decisions were reached at meetings last week and again on Monday, according to informed sources, and the Cabinet will meet on Thurs-

I day, if necessary, to hammer out a collective viewpoint. The Chancellor of the Exchequer (Mr Denis Healey) is still due to announce the economic package ■ next week, probably on Tuesday. This painful exercise is required if Mr James Callaghan’s Government is to satisfy the International Monetary Fund of its good-house-keeping sense to obtain the $3900M loan it has asked for. The I.M.F. inspectors who have been in London for the last month are expected to remain until the Chancellor makes his statement in Parliament. Mr Healey and his Treasury colleagues are reported to have considered cuts totalling about E2OOOM. but to have been pressed by Cabinet and other leading party members to lower this figure. The Left-wing Tribune Group in the party has issued a tough statement warning the Government that it cannot rely on its support in Parliament if the proposed reductions seriously affect housing, education, health, social services, and industrial development programmes. The group, which has a hard-core backing of about 30 Labour members of Parliament, but claims more than 70 supporters, has also expressed concern about reports that the Government is considering selling about ESOOM worth of its shares in British Petroleum as part of the package deal.