BRITAIN'S ECONOMIES

Chronicle (Levin), 29 August 1947, Page 5

BRITAIN'S ECONOMIES

(N.Z.P.A.—

-Reuter,

s — Public Reaction To LatestRestrictions

, Copyright)

Received Thursday, 7 p.m. LONDON, August 28. More and possibly heavier cuts than those announeed yesterday may be expected in the next fortnight, says the Daily Mail's political correspondent. Reuter 's correspondent says the new restrictions on hotel and restaurant meals are less drastic than the public at one time feared. The maintenance of the. domestic meat ration at 12d weekly depends on Argentina's reaction to Britain 's deeision on sterling convertibility. Comments on the cuts included: — Hotel and Restaurants Association of Great Britain; Ineonvenience and -hardship will result. to the travelling public and those having to eat and sleep away from home. The saving will be inliinitesimal compared with the total consumption of rationed goods. The restrictions are bound to jeopardise the expansion of the tourist industry. Caterers Association of Great Britain: The cuts mean less food for the public who have to eat out while the saving will be half of one per cent. of tlie total rationed food consumption. Rpokesman for Lyons Cafes: Any further worsening of the general food position will cause a serious situation. These severe cuts must cause hardship to many of our customers. Recretary of the National Federation of Meat Traders: The cuts mean that the ration to butchers will be lower than during the war. Thomas Cook and Sons: The lack oi eurreney for foreign travel will end winter sports. Many potential travellers will havve their deposits returned. Resorts like the Channel Islands, I.sle of Man and Eire should benefft eonsiderablv. Mavor of Weston-Super-Mare: We liave a better background for holidays in this country than anywhere abroad. I don 't see why we shouldn 't make holidays at home just as attraetive. Joint Rtanding Committee of the British IMotoring Organisations: We will have to take account of what the tiovernment proposes to do to ensure that motorists who use their cars foi business — the great, majority of private car users today — continue to receive an adequate ration. Should Have Gone Further.

A Times' editorial says that never has tlie ALinistry falleu so far short of pentup expectations. The Governuient 's announcements of yesterday have all the air of another postponeiiieut of a critical deeision. -For' the second time at least the British people were prepared for a most rigorous demand for sacrilices during the lean winter ahead. Instead they have again been given a confused account of several restraints which cannot be avoided but for a positive programme for inilustrial recovery they must wait. The tiiue has arrived for -a'protest. The positive side of the programme is still a matter for iuterininable negotiation with trade uuions. Nothing was said yesterday eitlier about the physicai suppression of wasteful activities or Ihe incessant inflationary pressure which breeds and encourages such activities. The Governmeiit 's reluctance, for political reasons, to make plain deprivations in terms of houses, schools, factories and other necessities foregone, is as obstructive as understaiidable. This bit by bit approach to the policy which Mr. Attlee announeed three weeks ago simply means that the goodwill of the people is dissipated. There has been far too much pessimism about Britain 's future. There is no reason why a fresh foundation cannot now be laid but the preface must be a real programme of retrenchment eft'ort. Second-hand Cars Hit The Daily Mail's motoring correspondent says the abolition of the basic petrol ration will deny hundreds of Uiousands of motorists any use of thei; cars. There will be no more week-end trips, motoring holidays or going'-- to golf or raees by car. There will be 110 .more black-market petrol because those uot entitled to petrol for business will run too great a risk if thejr venture on the road. The police will be able to demand from any car user an explanalion of his right to be wherever he is. Motor coaches, hire cars and taxis will uot be aff'eeted because they run ou special transport users' allowances. The motor industry will find it easier to export 75 per cent. of its output as the Government is urging, with the less Keen liome demand. The Daily Telegraph says the petrol cut will be disastrous to used ea:•lealers. Many smaller dealers holding heavv stocks of prewar cars will be espeeially hit. One Midlands deale: •aid the cut would knoelc £200 or £300 off tlie secondhand price of £700 or £800 asked for a popular 10 h.p. car prieed new at just over £400. The Daily Herald, in an editorial, says the reason for the cuts is that they are unavoidable. They must be made because we have not yet had time to build up our production suffieiently to pay our way in the world and to buy all we need and want from other countries. Taking each item by itself it might be argued that the total saving will be only small but if the fsame argument were employed about everv item, we would end by making 110 savings at all. Unless those realities are understood and unless we are able to increase the output considerably, the Government will be impelled to introduee much more grievous cuts. More to Come The Times 's Parliamentary correspondent says the Government statenient is not the whole of the Government 's economic policy for meeting the exchange crisis or even the most important part., The statement on export policy to be made in the second week in September will mark a further' very important stage of the emergency progfamme. On the positive side it will show how industry is to be hai nessed to produce more for export.