ECONOMY IN BRITAIN.

New Zealand Herald, Volume LXVIII, Issue 20954, 18 August 1931, Page 9

ECONOMY IN BRITAIN.

RUMOTJR ABOUT WAGES CUT.

PRIME MINISTER'S DENIAL.

MEASURES FOR COMMONS. DETAILS BEING CONSIDERED. By Telegrnph—Press Association—Copyright (Received August 17, 9.5 p.m.) LONDON, August 17. The Prime Minister, Mr. Mac Donald, at Lossiemouth to-day said to an interviewer: "I want you to deny a printed statement that I, in company with Mr. Lloyd George and Mr. Baldwin, intend to issue a manifesto calling for a temporary all-round cut in wages and salaries. " I (im amazed tliat anyone should attempt to use the nation's . difficulties, to spread panic-stricken mischief of this kind. The statement is a sheer malicious invention.

" It is a prime mistake to confuse the need for : balancing tho Budget with talk of a reduction in wages. Instead of achieving national union, which is essential, it would rnako the industrial position worse."

The Daily Herald states that Mr. MacDonald and his colleagues will stress this point of view to tho members of tho council of the Trades Union Congress and of tho executive of the Labour Party when they meet them on Thursday. Although tho Cabinet's economy committee adjourned from Thursday until Monday there has been no slackening in tho preparation of plans to deal with the financial emergency. Tho members of the committee who arc on holiday in different parts of tho country are examining the Treasury • memoranda and other departmental reports on the various proposals under consideration. The Chancellor of the Exchequer, Mr. Snowden, iu particular, is keeping in close touch with tho Treasury.

By the timo tho committee reassembles on Monday afternoon it is hoped that the proposals in some detail vrill be ready for consideration. The schemo as approved by the Cabinet will probably bo the subject of discussions with Mr. Neville Chamberlain for the Conservatives, and Sir Herbert Samuel for tho Liberals. If there is an indication that tho Opposition parties are prepared to give the proposals general support, Parliament will probably be summoned next month.