BRITAIN’S FUTURE

Wanganui Chronicle, Volume 89, Issue 277, 23 November 1945, Page 6

BRITAIN’S FUTURE

AUSTERITY DAYS AHEAD

SIR STAFFORD CRIPPS ON CAR PRODUCTION (Special Correspondent—N.Z.P.A.) London, Nov. 21 The fact that Britain has a period of austerity ahead of her has been reemphasised recently. Sir Stafford Cripps, addressing motor manufacturers and traders and the Manchester Chamber of Commerce, made it clear that the Government’s policy is to keep the home market, short for the sake of exports. In the House of Commons it has alsp been stated that Britain must take fewer American films unless the United States take* more of Britain's. It was, as Robert Boothby said, a case of "Bogart Oron." While the point of Sir Stafford Cripps’ statements was»fully realised, his was not a popular policy to declare, and there were cries of “No! No!” and “Tripe!" when he suggested that Britain should go without cars so that the export trade could benefit. He declared that by the middle of 1946 Britain would need to export at the rate of 100,000 private cars and 25,000 commercial vehicles a year.

“We must," he said, "produce a cheap, tough, good-looking car of a decent size—not the sort of car we have hitherto produced for the smooth roads and short journeys of Britain.” Sir Stafford also declared: "We will not become the economic serf of any other country. We will work out our own salvation by our own strength. We will not sell our birthright of economic freedom for the mess of pottage of temporary comfort and luxury.” This comment, made io the Mam Chester Chamber of Commerce, was better received than his remarks to the motor manufacturers and traders. The explanation was made by Sir Thomas Miles, vice-president of theNuffield Organisation, that Sir Stafford Cripps had been somewhat clumsily briefed. "The Home Agency could hardly be expected to be overjoyed at rhe prospect of their normal livelihood in car sales being throttled. What his listeners wanted to hear was that his department was taking steps to remove the bottle-necks of production that are hampering the export business in cars to-day.”

Although there has been a widespread hope that motor-car taxation would be changed, there will only be minor alterations as indicated in the Budget While the purchase tax stays. This was made plain by Dr. Dalton in the House of Commons. He emphasised that more than 50 per cent of car production must be exported, as against the pre-war figure of 16 per cent. He promised the industry every assistance. On the purchase tax in general, he promised between now and the April Budget to go carefully into all cases put by members of the House of Commons and see how far it would be justifiable to remit or reduce the tax.

An indication of the effect that the war has had on private motoring in Britain is the fact that there are nearly 900,000 fewer cars on the road now than in November, 1938. The new British cars, when available in quantity, will be higher-priced than before the war, and the retention of the purchase tax will make them dear. In thp United States they are reported to cost little more than in 1941. Britain’s film bill to America, which before the war was some £7,000 000 annually, had more than doubled by 1944 at £15,500,000, and increased still further this year. Britain therefore intends to produce more of her own films—as recently indicated bv thp decision to launch a £10,000.000 drive—and either receive fewer from America or send more of her own to the States.

Britain, it mav be gathered, Is nov well in thp doldrums of the austerit 4 period, with her basic rationing fo food and clothing the scarcity of good and the virtual banning of what maj be regarded bv some as luxuries, sucl as cars—t hough many of the America! cheap films would scarcelv qualifv fo that category. More civilian goods ar< promised for early next year following the return of of members of the force to factories, but. few people expect th general position to be very muci better before this time next veai What has been described as Britain' economic Dunkirk is now being fulh experienced.