POST-WAR POLICY

Gisborne Herald, Volume LXX, Issue 21009, 4 February 1943, Page 4

POST-WAR POLICY

BRITISH JDUTLINE REVIEWING INDUSTRY RETENTION OF CONTROLS (By Telegraph—Press Assn.—-Copyright.) (British Official Wireless.) ■ RUGBY, I'eli. 2. “The basic objective wc must set ourselves is active employment: for the of this country. Not only must we not repeat tin 1 tragic, story of' the years between the wars, but we must also realise 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 economic policy in the House of Commons.

The Chancellor said that thy outstanding problem in the transitional period immediately after the war would be to transfer resources quickly anil smoothly to peace-time use, promoting employment and reviving ex-

port. He warned that those days in many ways would be more difficult than the war period. Much would depend on the willingness to continue restrictions and shoulder burdens for the sake of others.

After the transitional period we should be able to restore and then raise the standard of living, but this would be impossible unless, both inflation and deflation were avoided. Inflation would bo one of the greatest dangers and inflationary tendencies might last longer than after the last war. For this reason we would have to retain a considerable measure of control over economic, life and he believed that a. great majority of the people were prepared to accept, that as l)eing in their best interests'.

Holding' Price Levels

The main problem in the postwar period would not bo to stimulate the demand for goods, but rather controlling and directing goods and services' to secure an orderly recovery of economic life. While the main object after the war must be to remove limitations on supply as soon-.as possible, . manufacturing . capacity would have to be carefully _ coordinated with the general stabilisation policy. The Government believed that, subject to certain conditions, it should’ be possible for the general price level to settle down after the war at a figure not far different from the present without imposing nil impossible figure upon Hie Exchequer. Two further controls will be necessary—the release of raw materials and the issue of capital. Britain had already realised a substantial proportion of her investments and put them into the war. It would take time to recreate the sources of monetary income represented by foreign investments. Britain, consequently, will have to rely, in the main, upon a considerable expansion of her export trade. There would be a large building. programme to repair the ravages of war and overtake arrears. A wellplanned building programme could produce an immediate effect, on the employment of capital,.for such a programme would not come from, some inexhaustible spring; it would depend on the savings of the people each year.

Reduction of Taxation

The Chancellor referred to increases in taxation and said 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 ! reduced as quickly as possible, if only to enable the country to restore trade and business, but also to" have regard for the conditions of the people, their homes and families, and their security against want and unemployment. They must also see that they will have opportunities to enjoy the fruits of their own efforts. The Chancellor, in conclusion, stressed the need to maintain armed forces as an insurance against aggression and said that after the transitional period was passed we would have to consider the development of agriculture, housing, education, roading, forestry, civil aviation, social security, and colonial improvements.