Opportunities And Risks

Northern Advocate, 28 September 1949, Page 5

Opportunities And Risks

The House of Lords was packed to capacity when the Leader of the House (Viscount Addison) rose to move the Government motion.

He said devaluation undoubtedly brought a great new opportunity for British traders to extend their sales in dollar areas and opened up new avenues of sale. “But it does bring some serious risks and immediate disadvantages,” he said. “The first and obvious disadvantage of action of this kind is that our imports from these areas cost more.” Last year Britain was the only Marshall area country which increased the proportion of purchases made by her own exports to tlje dollar area “However, it was only 36 per cent, and a very big gap has risen in the second quarter of this year,” he said. Lord Addison asked what expenditure the Government’s critics would reduce. He said: “So far there has been singularly little except denunciation.” There would have to be a combined determination not to increase wages costs or profits. “Our major objective is that the matter shall be dealt with in such a way that we shall be able to maintain employment and the standard of life of our people.” The acting Leader of *the Opposition (Viscount Swinton) called for a great deal more information under three heads: • (1) The circumstances in which devaluation had taken place. (2) The principal results of devaluation. (3) What was to be Government policy in the future. He accused the Government of a “terrible lack of fo’resight and judgment.” He said devaluation was not by itself a policy. 'lt was a “confession of weakness and failure.”

The overriding thing was to restore confidence in the pound sterling. “We must get one level for the pound the world over,” he said. ■ “Confidence in ourselves and the confidence of the world in us must be found by a wise policy and resolute action. “We cannot accept the Government's motion and shall table an amendment.” The leader of the Liberals (Viscount Samuel) said the Liberals would not support the motion. He added that devaluation was inevitable under the circumstances and the Government was right to take the step, but it was a disaster to the world at large and to Britain in particular, because its effect must v be to raise prices still higher. There was a scene when Lord Pethick-Lawrence said there was a “whispering campaign” among large sections of the Opposition, which said that to compel workers to work harder, the “whip of unemployment” was necessary. Lord Swinton interjected: “He is libelling the party I represent in this House.” The chairman of the Conservative Party (Lord Woolton) described the charge as a “dastardly lie.”