Wage Rise Demands Likely Sequal To Dearer Food: Minister Defends Action

Gisborne Herald, Volume LXXVI, Issue 22917, 8 April 1949, Page 5

Wage Rise Demands Likely Sequal To Dearer Food: Minister Defends Action

BUDGET REACTIONS

(N.Z.P A. — Reuter—Coryrijrht.) (10.30 a.m.) LONDON, April 7. British trade union leaders today warned the Chancellor of the Exchequer, Sir Stafford Cripps, that they might be powerless to stem widespread industrial demands for wage increases after his “higher food prices” Budget announced in Parliament yesterday.

* Sir Stafford Cripps was present today at a meeting ot‘ 400 members of the Parliamentary Labour Party, and be gave a spirited defence of his Budget, particularly the proposed increase in the price of meat, cheese, butter and margarine.

The meeting opened in an atmosphere of resentment, says Reuter, but the open explosion predicted in some quarters did not take place. Moderate elements in the party accepted the Budget, despite its depressing details as inevitable in Britain’s present circumstances. Nearly all the Cabinet Ministers except the Prime Minister,, Mr. C. R. Attlee," attended. The Ministers subsequently discussed the public reaction to the Budget at their normal Thursday Cabinet meeting. The main challenge to Sir Stafford Cripps was on the increase in food prices but the Chancellor pointed out that the amount added to the weekly food costs by the Budget was only a few pence per ration book. Sir Stafford Cripps also pointed out that the present heavy food subsidies, in themselves, gave .the ordinary householder the equivalent of a remission of several shillings in income tax a week. The trade union representatives emphasisted their opinion strongly that immediate wage increase demands from lower paid workers were inevitable.