Businessmen's Proposals To Meet Economic Crisis

Northern Advocate, 12 March 1948, Page 5

Businessmen's Proposals To Meet Economic Crisis

LONDON, Thu. (1.10 p.m.).—The Federation of British Industries, the Association of British Chambers of Commerce and the National Union of Manufacturers, in reply to the Government’s proposal to freeze profits and prices, recommend an increase in productivity, a reduction in and stabilisation of prices, and limitation of dividends.

The report recognises the country’s economic crisis is the worst for a century. It says every section of the community must play its part swiftly. “We are convinced that the system of restricting prices and profits, and of centrally controlling wages, is in principle, thoroughly unsatisfactory.” the report states. "Nevertheless, the measures which the Government proposes can play their part in preventing aggravation and inflation but they are only a temperarv contribution towards a solution unless other measures are taken. The report urges encouragement of voluntary savings, opposes further direct taxation, and recommends additional Government restriction of capi-

tal expenditure and reduction of Government expenditure. The report recommends that all concerned in industry should do everything possible to reduce prices, announce reductions as quickly as possible. and accept consequent reduced profits. Manufacturers should peg selling prices on today’s levels subject to discretion in exceptional cases, and a company's gross distribution in dividends should not exceed the gross amount distributed on the same capL tal in its previous financial year. The report urges immediate adoption of its recommendations, which should operate for 12 months.