NOT REQUIRED

Southland Times, Issue 25343, 23 July 1935, Page 7

NOT REQUIRED

NEW DEAL FOR BRITAIN GOVERNMENT’S REPLY TO MR LLOYD GEORGE SCHEME REJECTED (United Press Assn. —Telegraph Copyright.) London, July 21. “In every field Mr Lloyd George explores the Government has already taken action which has produced results wider and more comprehensive and more beneficial than any his programme can effect,” says the Goveinment in a long statement rejecting his “new deal.” . , “Mr Lloyd George apparently believes the people can be shaken out of their blank pessimism not by concrete measures but by the establishment or some spectacular new machinery ot government which is vaguely expected to evolve the whole new programme ot national regeneration in twelve months. His proposal to raise a big loan in advance of the time when it is required to be spent would involve, financial dislocation and be deflationary in effect.” , , , The Government argues that beyond the public works programme there is nothing in the plan likely to directly affect the amount of employment available for a considerable time. It traverses the Government’s record in this respect and its future projects. It expresses the opinion that progress would be slower under Mr Lloyd George s new machinery than at present. Mr Lloyd George’s proposed settlement of half a million workers in agriculture could be achieved only, if at all, at the cost of a large increase in the price of food and injury to friendly relations with the Dominions and other countries. Some of the most important parts of the Empire would be gravely affected by the exclusion of £92,000,000 worth of foodstuffs. New Zealand might lose at least a quarter of her trade. Australia -and Canada, though they might find some compensation for serious losses in increases in the sales of animal feeding stuffs, could not escape a severe dislocation of their industries. . . The Government is of the opinion that no single statutory body could carry out the work the plan seeks to impose on a national development board. A small instead of a large Cabinet would intensify rather than simplify the problem.