DIFFICULT YEAR AHEAD

Chronicle (Levin), 14 November 1946, Page 5

DIFFICULT YEAR AHEAD

(Special Correspondent.)

CAREFUL HANDLING NEEDED

Received Wednesday, 7 p.m. ' LONDON, Nov. 13. Britain 's Labour crovernmeiit- faces a difiicult testing year and perliaps the erucial year in its careef, during tlie neW session of Parliament opened b.; tlie Iving.- Production and trade wil provide the main domestie problenis t be solved aiid success or failufe in thi field will have a deiinife influence upoi. the Labour Party 's futu're. Labour begins its seeond year n, power more firmlv established th'an n was 12 months ago aud still Witliout a serious challenge from *the (Jon servatives. , It has behind it a recon. total of legislation, a fairly smootl, switehover of 7,900,000 men and womei. from war services and production tc peaceful Qccupatious, and promisuig trade ligures. »So far its record cai reasonably be regarded as being as gooi. as any new govermuent could hope foi in these times. But it lias yet to re eeive a national answer to its reneweo call for production and to make head way in overcoming one of its greates. prolilems — balance of trade payments In the backgi'Ound is the cpieasy fear oi a trade depression which may liave itroots in United States. Tliis, and some uneasiness about renewed un emproyment, go some disfance towanL explaining tlie cause of under production which, to a certain extent, is baseil on the desire to "sjiread the work". Other factors conibiniiig to make uji tliis prolilcm of production iiiciudc shortages of raw m'aterials and labour There is'also a lack of incentive amorig employees aggravatetl, among other things, by wage systems which fi> niinimum guarantees so higli that there is little urge to earn more, and by the results of the pay as you earn income tax. On the emplovers' side there are com plications of controls which are catlsiug iucreasing restiveness. There is a growing campaign against nationalisa tion and in favour of freedom from bureaucratic controls. The main task confronting Labour is the easing of these two moods. Ex hortation, it is being said, is not enoug'i and something more needs to be (Tone tlian telling tlie workers that vmderproductioa cuts at the roots of Labour 's social programnie, and declaring to employers that tlie Government lias no wisli to destroy the pro(it„motive. Thev are prickly moods and will requiix skilful handling. Alany Socialists desire to see greater inroads made upon capitalism and a greater measure of authoritv given organised workers in tlie management of industry, despite ,Sir Stafford Cripps telling them that ,few wage earners are qualified to fullil such responsibhfunctious. The employers reseat eacn frosli ranve toward nationalisation and Ihe rnaintenatice of controls. While outliniiig4 some of the "maui domestie ditHciilt ies that face the Governiiient, however, it would be wrong i to suggest lliere is cause for despond- ; ency. British people have a liabit ot airing tlieii* dilfi'renct'.s nf opiuion and crit icising tlieir ovvn shortcomings. nsually in tlieir own disadvantage,. j During the war, for instancc, there was ' freijueiit lamentation about production yet production was good. There were many criticisms of the food I rationing svstem as well as such things as tlie eensorsliip. Yet Britain V rationing motliods worked more fairly tlian any in Europe and lier eensorsliip was as tolerant aiul eiiicicnt as any oi /he Allics. j Despite all tlie gloominess that lias : l>oon cast so recent ly over tlie coal pm duction, latest ligures show more .eonl is being produced with t'evver niiners The production ligures are the most en couraging since 1942. AVhile tlie posi tion is still not satisfactory, indifatiomare tliat the niajoritv of miners are responding to tlie Government 's call. It lias also to be remembered tliat Britain still has lier " breathing space" with a seller's niarket stil. existing and lier Aiiierican and Ca'na diau loans still to be drawn upon. B.v again airing and debating lier ' difiicult ies Britain is also facing fip to lier position and tlie pull of opposing interests is substantially in the sam!'direction. Conditions are graduallv improviwg j in Britain though the process may be islow as ice forniing. But whether tlie 'process will be fast enough during the eoming year is a'qucry tliat casts s shadow for the Labour Govermuent. Its cliaracter and abilitv will be stern 1\ : tested during the eoming session and i any lengthening or shortening of tk, shadow will be reflected both over th « Government and Britain as a whole. -