PROGRAMME AFTER “VICTORY

Dominion, Volume 36, Issue 111, 4 February 1943, Page 5

PROGRAMME AFTER “VICTORY

British Economic Recovery OUTLINE IN COMMONS (British Official Wireless.) RUGBY, February 2.

“The basic objective we must set ourselves is active employment for the people of this country. Not only must we not repeat the tragic story of the years between wars, but we must realize that all our hopes for the future will depend on our success in achieving this,” the Chancellor of the Exchequer, Sir Kingsley Wood, declared when formulating the Government’s post-war financial and economical policy in the House of Commons. The Chancellor said that the outstanding problem of the transitional period immediately after the war would be the transfer of resources quickly and smoothly to peacetime use, the promoting of employment, and the reviving of the export trade. He warned that those days, in many ways, would be more difficult than the war period. Much would depend on a willingness to continue restrictions and shoulder burdens for the sake of others. After the transitional period they should be able to restore, and then raise, the standard of living, but this would be impossible unless both inflation and defiation were avoided. Inflation Problem. Inflation would be one of the greatest dangers, and inflationary tendencies might last longer than after the last war. For this reason they would' have to retain a considerable measure of control over economic life, and he believed that the great majority of the people were prepared to accept that as being in their best interests. The main problem in the post-war period would not be to' stimulate a demand for goods, but rather a controlling and directing of goods and services to secure an orderly recovery in economic life. While the main object after the war must be to remove limitations on supply as soon as possible, the manufacturing capacity would have to be carefully co-ordinated with the general stabilization policy. The Government believed that, subject to certain conditions, it should be possible for the general price level to settle down af‘er the war at a figure not far different from the present, without imposing an impossible figure upon the Exchequer. Two further controls would be necessary—on the release of raw materials and the issue of capital. Britain had already realized a substantial proportion of her investments and put them into the war. It would take time to re-create the sources of monetary income represented by. foreign investments. Britain consequently would have to rely in the main upon a considerable expansion

of export trade. There would be a large building programme to repair the ravages of war and overtake arrears. A well-planned building programme could produce an. immediate effect on employment. Capital for such a programme would not come from some inexhaustible spring. It would depend on the savings of the people each year. Taxation Level.

The Chancellor referred to the increases in taxation and said that they must be prepared for a continuance of considerable taxation after the war, not only to discharge war obligations, but also to pay for the maintenance of a comparatively high standard of services. However, taxation would have to be reduced as quickly as possible, if only to enable the country to restore trade and but they would have to have regard for the conditions of the people, their homes and families. and their security against want and unempolyment. They must also. see that they have opportunities to enjoy the fruits of their own efforts. The Chancellor, in conclusion, stressed rhe need to maintain the armed forces as an insurance against aggression and said after the transitional period had passed they would have to consider the development of agriculture, housing, education, reading, forestry, civil aviation, social security and colonial improvements.