DOMESTIC RETRENCHMENT— Attlee Orders State Cuts: Trade Union View On Devaluation

Greymouth Evening Star, 21 September 1949, Page 5

DOMESTIC RETRENCHMENT — Attlee Orders State Cuts: Trade Union View On Devaluation

LONDON, September 20 (Rec 10.10 a m.).—The Prime Minister, Mr Attlee, has ordered all Government departments to make economies aimed at an all-round cut of at least five per cent, in administrative expenditure during the current year. , f Reuters, quoting authoritative reports to this effect, said that the order supplements the British Treasury’s call to all departments to cut their estimates to save at least £150,000,000 on next year s Budget of £4,000,000,000. • ' - i ii Mr Attlee’s order was circulated privately some time ago, and all the Ministers were asked to report to him personally before the end of this month.

The economies called for fit into the general picture of domestic retrenchment, which Britain s representatives at the Washington talks indicated was part of her overall plan for an economic recovery. The cuts mainly concern the day-to-day administrative operation of departgenerally expected that Parliament will be called together next Tuesday. The Government will put before its supporters the full facts of devaluation at a private I Y. e ®“” g ’ which will be held before Parliament reassembles. . ~ Reuter’s says that speculativei re, ports are circulating that the Opposi tion might consider moving a.vote j of censure on certain aspects of the government devaluation. It has been suggested that some Government supporters are depressed at the announced increase in the price of bread. Trade Union View Leaders of the 8,000,000 strong Trade Union Congress decided at an emergency meeting tonight to r oserv judgment on the devaluation of sterhlßeuter says that observers were surprised at the decision which, they thought, indicated fears that the trade union leaders would have difficulty in holding their members in support ox the Government’s policy. The effect of devaluation on the cost of living will be discussed soon at a meeting between Sir Stafford Cripps, the President of the Board of Trade, Mr Harold Wilson and the Trades Union Congress. The official attitude is Still that,'with the exception of

bread, there is at present no reason to expect or tolerate any increases in the prices in shops. Clothing Prices Because of the increase, however, which devaluation will bring in the price of raw cotton, there will tend, to be a rise in clothing prices but it is hoped that this will be counteracted by cheaper raw materials in the rest of the clothing field. Mr Wilson’s five per cent, cut in utility clothes prices comes into operation next Monday and it is understood that the possibility of making other similar cuts to bring down the cost of living is being considered.