REJECTED BY GOVERNMENT

Evening Star, Issue 22087, 22 July 1935, Page 6

REJECTED BY GOVERNMENT

MR LLOYD GEORGE'S 11 NEW DEAL”, NOTHING FRESH IH PROPOSALS Press Association—By Telegraph—Copyright LONDON, July 21. (Received July 22, at 10 a.m.) “ In every field Mr Lloyd George explores the Government has already taken action, which has produced results wider and more comprehensive and more beneficial than any his programme can effect,” says the Government in a long statement rejecting the ‘‘ New Deal.” “Mr Lloyd George^apparently believes that people can be shaken out of blank pessimism, not by concrete measures, but by the establishment of some spectacular new machinery of government, which is vaguely expected to evolve a whole new programme of national regeneration in 12 months. His proposal to raise a big loan in advance of the time when it is required to be spent would involve financial dislocation, and would be deflationary in effect.”

The Government argues that beyond the Public Works programme there is nothing in the plan likely directly to affect the amount of employment available for a considerable time. The statement traverses the Government’s record in this respect and its future projects. It expresses the opinion that progress would be slower under Mr Lloyd George’s new machinery than at present. His proposed settlement of 500,000 workers in agriculture could be achieved only, if at all, at the cost of a large increase in the price of food and injury to friendly relations with the dominions and other countries. Some of the most important parts of the Empire would be gravely affected by the exclusion of £92,000,000 worth of foodstuffs. New Zealand might lose at least a quarter of her trade. Australia and Canada, though, might find some compensation for their serious losses in increases in the sales of animal feeding stuffs, but could not escape severe dislocation of their industries. The Government is of opinion that no single statutory body could carry out the work the plan seeks to impose on a National Development Board. A small instead of a large Cabinet would intensify rather than simplify the problem.