BRITISH DEFICIT

Hokitika Guardian, 14 August 1931, Page 6

BRITISH DEFICIT

RETRENCHMENT QUESTION. 96 MILLION CUT PROPOSAL. (British Official Wireless.) RUGBY, August 12. A Cabinet sub-committee, consisting of Messrs MacDonald, Snowden, Henderson, Graham and Thomas, which is to advise Cabinet regarding the recommendations of the committee appointed in February at the request of the Commons, to review national expenditure, met for the first time this afternoon, and after a session of nearly four hours adjourned until to-morrow. The sub-committee is in possession of the observations of all Government Departments effected by the proposals of the Economy Committee, which estimated the effect of the reduction in the expenditure next year at 96 millions.

The sub-committee will decide after the study of the proposals, the general direction in which economies can be made in order in provide for balancing the next Budget. It is denied that there are any differences between Ministers with regard to the imperative necessity of a balanced British Budget which the “Daily Herald” to-day described as “An integral part of the world financial security.” It is understood that to-day’s meeting explored the whole ground and dealt generally with the situation. After to-morrow, the? committee is not expected to meet again until Monday, when it is hoped that the next stage will evolve consultation with representatives of the two Opposition parties, but nothing definite is known as to the Government’s intentions.

CONSERVATIVE ATTITUDE

LONDON. August 13

The “Daily Telegraph” understands that while the Conservatives are not unwilling to participate in a three Party conference on economy, the responsibility for it must be the Government’s. Any proposal in the direction. of a National Government would he rejected.