New Approach to Employment Problems

Manawatu Times, Volume 69, Issue 124, 29 May 1944, Page 8

New Approach to Employment Problems

GREAT CHANGES ANNOUNCED TOR BRITAIN (British Official Wireless.) ' RUGBY, May 26. “A practical expression of our expansion policy" was the term applied by the Minister of Reconstruction (Lord Woolton) to tho Government's Whito Paper on the employment policy to-day. Lord Woolton said that the White Paper presented a new approach by the Government in relation to employment. It was new becauso it dealt with tho problem of the maintenance of employment rather than the problem of curing unemployment. It meant maintaining a high standard of living which involved having a high standard of consumption for the people. He wanted to get the people with money to spend it to buy goods produced in this country and provide employment for other people in this country. The Government proposed that as soon as it saw that there was an impending falling oil in consumer demand, they would take steps to increase the spending power of the public. On the other hand if they saw that demaud was out-running supply, then there would be an artificial check on expenditure.

One of the main objects was the maintenance of an increasing standard of living for all, and, in doing this, wo had to import considerable quantities of food. We could no longer pay for our imports by interest on foreign investments, as those investments had largely been sold to pay for raw materials necessary for the war. We had, therefore, in the future to pay as we went. To do this we had to expand our export trade by increasing our efficiency of production and finding overseas markets. The war had shown that the skill and adaptability of our industry were as high as ever and there were encouragement and hope for the future. The Government aimed at ironing out slumps and depressions, which only favoured speculation. What was needed was a steadily increasing volume of employment and consumption. The White Paper accepted the principle that it was tho Government’s responsibility to anticipate problems and plan ahead to avoid them. Drastic Change Speaking to the White Paper following Lord Woolton, the Minister of Labour (Mr. Bevin) said that for a 100 years the economic policy had been guided by the Bank Charter Act of 1844. Now, in 1944, the Government proposed to change the policy drastically. The old policy had tried to adapt humanity to fit in with the system of exchange; tho new policy adapted the system of exchange to the needs of humanity. An important provision of the Government’s plan was the annual manpower survey and census of production, which would influence tho Chancellor of tho Exchequer in drawing up the nation’s budget. Capital expenditure would also bo planned a year ahead. The Government could organise internal economy on a comprehensive basis in the full knowledge of industrial and human facts and in the light <)f the world situation. The Government aimed at abolishing “special areas’’ and controlling the mobility of labour and industry throughout the Whole country to ensure maximum employment and tho stimulation of industrial develop ment where it was most required. Mr. Bevin said that the White Papei recognised that unemployment was a disease of tho body politic and that it was the Government’s duty to cure it by recruiting its full resources of scientists, sociologists and industrialists, and also to devote all their energy to its elimination. The Whito Paper was part of a wide co-ordinated schemo for promoting social security throughout the country, of which the Education, Social, Insurance, and Health Bills were other examples, and of which tho object was to ensure at least the framework on which future Governments could build a society capable of absorbing and utilising tho ability and classifying the requirements of men and women returning from the war. Tho White Paper says that tho principal features of the Government’s policy will be: (1) A system of varying contributions will eventually be introduced within the new social insurance scheme to influence the volume and purchasing power of the community. When unemployment rises the contribution will bo reduced, thus giving the public more money to spend. (2) Planned spending on public works to check tho onset of a depression. A coordinating body under Ministers will be set up to control the expenditure of public authorities five years ahead. (3) Concerted action between the treasury and the banks is planned to influence the volume of capital expenditure by variation in the rate of interest. As part of the measures, it is suggested that taxes in good times should be higher than necessary and the surplus carried over as credits repayable in bad times. The White Paper anticipates that rationing and a measure of price control will go on for some time after the war, and increases in tho rations of such things as clothes will be regulated by increases in production. The level of prices and wages must be kept reasonably stable.