Labour reveals plan to fix Tory ‘crisis’

Press, 4 August 1981, Page 9

Labour reveals plan to fix Tory ‘crisis’

NZPA London Britain's Opposition Labour Party has released an -economic blueprint, including a proposed wealth tax, aimed at what its Leftdominated national executive called a “radical vision of a socialist Britain.” The 28-member executive said in the document that if Labour should win power, the “crisis” it will inherit from Margaret Thatcher “cannot be met by cautious tinkering .or piecemeal measure.” “It demands an imaginative and sweeping programme based on coherent strategy and guided by socialist values,” it said. The document w r as released as. leading moderates — termed “wets” in British political slang — in Mrs Thatcher’s Cabinet expressed renewed concern over the-week-end about the effects of her tight-money policies and soaring unemployment The Conservative Party chairman, Lord Thorneycroft, .rejected a contention by the Chancellor of the Exchequer (Sir Geoffery Howe) last week that the recession is “at an end.” “The economy is in the deepest recession I have known.” Lord Thorneycroft said. “It is still very rough indeed.”

The Conservative Leader of the House of Commons (Mr Francis Pym), evidently worried about the party’s reelection prospects, said that Britons would not “be prepared to tolerate the worst effects of the recession if there is not a clear sign that the sacrifice will have been worth while.” The expressions of concern about Mrs Thatcher’s policies, which she insists cannot be reversed now, came as she reached the half-way point in her five-year plan. .Labour's blueprint was the latest in a series of radical measures drawn up by the executive, the party’s chief policy-making body, to be put before the party's annual congress in September.If passed, the measures would become part of the party platform for the next General Election. The Labour document pledged an almost total reversal of Mrs Thatcher’s anti-inflationary policies, introduced when she defeated Labour in the May; 1979, General Election. The blueprint calls for increased State spending to boost the economy and reduce unemployment — now running at a post-1930s record 11.8 per cent, or 2.85 million jobless, compared with 1.3 million when Mrs’ Thatcher won power.

It also reiterated the vote at last year’s party congress ’ to take Britain but of the • Common Market, which Left- : wingers regard as a caapital- ■ ist-dominated association. : the wealth tax envisages a ■ special tax of between one ■ and five per cent annually on i assessments of more than £ 150,000 ($334,300)- The document also-advocates import controls, and measures to . push down the value of sterling to boost exports. “There will be hostility from those whose power, privilege and wealth is threatened,” said the document. "Within the 'last two months, the Labour national executive has voted for unilateral nuclear disarmament, including a ban of United States nuclear missiles due to be deployed in Britain in 1983, and to abolish all private schools within 10 years. The national executive decisions were taken despite opposition from party moderates, including the party leader, Michael Foot, dismayed , at Labour’s Leftward lurch over the last two. years. Central to party strife now is the battle by the arch Left-winger, Tony Benn, a former Energy Minister, to oust the Centre-Right deputy ' leader, Denis Healey, at the autumn conference.