INFLATION DANGER

Greymouth Evening Star, 3 August 1946, Page 5

INFLATION DANGER

ADVISORY COUNCIL IN BRITAIN

[N.Z.P.A. Special Correspondent.]

LONDON, August 2

A national joint advisory council of employers and trade union leaders at present meeting in London is considering measures recommended by the Government to check inflationary trends. One proposal is that a national wage policy should be adopted to freeze wages at the present level and to permit increases only as a result of a higher output. A second proposal, which is said to have the support of union leaders, is that more consumer goods, particularly clothing, furniture, household equipment, motor-cars, and sports gear, should be directed to British shops. . , It is contended that if British people had more things to buy with their money there would be more inducement to work harder. It is recognised that any diversion of consumer goods to the home market must mean less goods for export. Point is given to these discussions by the latest Ministry of Labour returns, which show that during the last six months 5,400,000 British workers shared wage increases which totalled more than £1,750,000. In addition, income tax reductions left £3,000,000 in the pockets of 11,000,000 persons. This, it is considered, is one of the chief reasons for the present spending boom, whiph, in the absence of consumer goods; is tending to concentrate upon gambling and second-hand goods at inflated prices. 1 , Another disturbing trend revealed by the Ministry of Labour is that although wages are now 74 per cent, higher than they were in 1938; the hourly output in almost all industries "is decreasing.