Announce Drastic New Economies

Northern Advocate, 28 August 1947, Page 7

Announce Drastic New Economies

(New Zealand Press Assn —Reuters—Copyright)

(Received 11.80 a.m.) LONDON, August 27. THE British meat ration is cut from 1/2 to 1/- in drastic new economies, including food, foreign travel and petrol, enabling Britain to save £228,000,000 annually in imports, was announced by No. 10 Downing Street tonight. The basic petrol ration is abolished; thus motoring may only be possible, as during the war, for essential purposes.

The tea ration will not be raised above the present reduced level. Ration books must be surrendered after two nights in an hotel, instead of the present four nights.

port policy will be made during the second week in September. The Government announcement said: “During the past fortnight the Government has been reviewing the economic programme, which it announced in the House of Commons on August 6 and 7. “The broad aims of this programme have not been affected by the sudden increase in the drain on our dollar resources, which led to last week s decision to limit the convertibility of sterling. “This development, however, has made it necessary for the Government to accelerate and intensify measures it already is taking to narrow the gap between foreign expenditure and earnings.” The announcement added that the Government had decided, as a result, to adopt the measures now published. “It was announced earlier in the month that our programme of food purchases from hard-currency countries would be reduced by £12,000,000 monthly. This reduction cannot be secured at the expense of stocks, because, in the present circumstances, it is essential that our existing stocks of food should be conserved. “It will be secured partly by abandoning improvements which had been planned in the nation's diet and partly by economies in current consumption.

The meat cut begins on September 7. Supplies of foodstuffs to commercial catering establishments will be reduced between 15 and 18 per cent, from September 14. The cuts will not apply to canteens.

“"Attendance at public luncheons and dinners will be limited. The import of certain luxury foods will be prohibited.

Other adjustments in food consumption will be announced later.

Foreign currency for pleasure travel will be reduced from £75 to £35 immediately, instead cf on October 1, and after October 1 will be wholly suspended. The businessmen’s allowance abroad of £lO daily will be reduced to £8 in certain countries.

The announcement adds that further similar measures which may be required will not, by themselves, suffice to bridge the gap between foreign expenditure and earnings. The positive side of the programme is to increase home production and expand exports. A detailed announcement of the ex-