Disaster Unless Cost Rises Are Checked

Chronicle (Levin), 10 February 1948, Page 5

Disaster Unless Cost Rises Are Checked

(N.Z.P.A.—

-Reuter,

, Cowrighi)

Received Monday, 7.*0 p.m, • 'LONDON, Feb. 9. : A ' serious eonfiict between the Government and Trades"' Union OongreHS is. fprecast over the Government 's decision to eall for an end to general Jnercases in' wages. Mr. Attlee- and-Sir Stafford Cripps, how,ever,. seem resigned to the fact that this conliiet must occur if DritaiiG is to take (ft'ective steps towards mastering its economic crisis. Ijast vear both of them spoke ahout the' need for stemming wage increases hut though the T.II.G. reported 011 the situation in Decemher, it offered no guidanee, [tresumably because it felt that any advice to the unions against an inerease would he unpopular. This indeeision made no contribution fo reduejng the rising cost of Bi'itish manufactured goods which. Sir Stafford Cripps deelared to be a Gomplieation in Britain's export drive. The initiatiye, therefore, returned to the Government and it deqicled that some attempt must be made to check the vicious eirele of rising wages and |>rices. Commentators see behind this decision the timi hand of Sir Stafford (fripps who onee again is risking unpojmlarity on the grounds that if voluntary self diseipline is not displaycd in this matter during the next six months, the Government will be faced with alternatives either of striking at the structure of eollective bargaining or clrif'ting into a worse eeonomie position. The unions are particulafly anxious to know if and when the (fovernmCnt intends to interfere with dhe existing machinery for eollective bargaining and this will be one of the main points diseussed with Mr. Attlee during the eoming week. They also feel that more emphasis should he laicl on controlling ])rices and profits.

Sir Stafford Cripps is expectec i:o put the Government ease to tlu Commons and eountry when thc whole subjeet is debated next Thursday. Meanwhile, in his broadcast last week, Mr. Attlee emphasised a point about Britisll experts. 'Mi the ])rice .(of our exports) is too 1 iiigh," he said, "we shall not be .ible to sell and if we can't export vve shall be able to buy neither the food we need nor raw lnaterials for our factories. "Without these here must be ntass imemploymeni and real desperate 'hunger, " he said. ';It is only as" a great exporting eOuntry that B'ritain can survive and already some'of out best customers are jibbing at oui prices." Mr. Attlee said he lmew it was lempting to press for more money when prices were rising and othei people had more ''but it is a sliort fived advantage and if more goods have not been produced, the Shortages will still be there. All thal \ ill have happened is -that therc w?U be more money about. Bu1 ihis will do them no good because llioy will be spending it in eompe t i t ioA with othci's who have more money too." The Prime Minister added thal the Government -was just as con cerned- with rising profits as rismg wages. "Their view is' that ihere is no justification at the pre: sent fime for any rise in income from profits or other like sources," he said. Wrhjle there has heen a good deal of comment about T.II.G. op]>osition, another union view has been put by Mr. A. Edwards, Hatuma! chairinan of the Independ ent Lahotir Party and acting general secretary of the Ghemical AYorkers' Union. f Saying it wai clear the. Government was deter m.ined,.-despite formidable trade union opposition, to press forward

1 its new poliey, he aclded:- "The trade union movement cannot continue to bury its head in the Sancj and refuse to faee up to its obligations. Thc ti'ade unions demand q planned eeonomy and they can hardly expect tp contract out of the implications of siich a poliey. The trade union movement seepis unwilling or unable 'to face up to the new situatian which eries a.loud for a natioiial wage poliey basod on t]ie .economic situation that exists in this countyy, in ( Europe and the world, "