Greymouth Evening Star. WEDNESDAY, FEBRUARY 12, 1947. Crisis In Britain

Greymouth Evening Star, 12 February 1947, Page 6

Greymouth Evening Star. WEDNESDAY, FEBRUARY 1 2, 1947. Crisis In Britain

ORITAIN is facing grave economic disruption. The severity of the winter which all Europe is experiencing is partly to blame for the fuel crisis, but at the heart of the problem is the shortage of coal stocks, which through lack of fore- ’ sight and Ministerial optimism were allowed to dwindle to proportions well below the safety limit. Over-riding all causes, however, is the grim fact that Britain used to produce 240,000,000 tons of coal, and now, owing to the ravages of war, worn out machinery—a,nd worn-out miners—this output has shrunk to an an- ' nual 200,000,000 tons. This is better than it was in 1945, when production fell to 175,000.000 tons and war-time safety stocks were depleted. Production at the newly-nationalised mines has been boosted in recent weeks, but it is still far below national needs.

The coal famine, however, is only the immediate problem. The vision of empty coal-bunkers, dwindling coal stocks at power stations and barren coal-buckets in every home is grim enough, but with the coming warmer weather the present troubles will pass. What is really more serious is the effect which the disruption of industrial life will have on the country’s general economy. In their task of repairing an economy shattered and dislocated by war, as Sir Stafford Cripps has warned them, the British people have “a very tough struggle ahead for two or three years at least. ” Production is the key to Britain s economic difficulties, as a recent White Paper stressed. The major obstacle to achieving maximum output rapidly is the nationwide shortage of man-power. At present there is a labour deficiency of 500,000 workers. In part, the effects of this shortage have been offset by the commendably small loss of working days through strikes. This is one of the brightest features of the economic scene, and much credit must be given for it to the enlightened leadership of the Trades Union Con-

gress. Major Problem. The great problem before Britain is how to maintain a decent standard of living in her home islands and still fulfil her role as a world Power. However that issue may be disguised by the Socialists for home consumption, economic facts are be-o-inniim- to assert themselves. .Last year Britain had a deficit of some £400,000,000 of imports over exports. It happens that about £300,000,000 of this is attributable to military expenditures overseas, not counting the £400,000,000 it is costing the British to occupy Germany and Austria. This gap in trade balance is at present being made up by the United States and Canadian loans. But these credits are being used up rapidly; by the end of 1948 they may be exhausted. Then Britain will have to stand on her own feet and pay her own way. While the Government has emphasised the rise in exports, it has not made clear that is is measuring them in value rather than in volume. Were the latter standard used, experts on foreign trade say, exports would to-day amount to only about 88 pel cent, of the pre-war volume. Foreign commitments are proving heavy for Britain to carry. In the armed forces there are about 1,500,000 men and about 500,000 workers are required to keep them supplied, hi fact, the overall position is that about one worker in every four is employed either by the central government or by a local authority. It is apparent that the domestic experiment in building a social state, involving heavy expenditure in man-power and cash, is proving a handicap to the industrial drive to increase output both for foreign markets and home consumption. Social services which accounted for £500,000,000 last year will rise to £700,000.000 within two years. It is debatable whether greater production can be achieved in the face of the more stringent economies. It is doubtful whether the Government can stimulate the nation’s workers without the carrot of incentive to earn more in order to buy more and enjoy more of the good things of life. One of the stumbling blocks to the granting of such concessions is the need for maintaining a. high rate of taxation to pay for the heavy cost of increasing doses of. Socialism.