ECONOMIC STATE VERY SERIOUS

Rotorua Morning Post, Issue 5308, 22 January 1947, Page 5

ECONOMIC STATE VERY SERIOUS

(Press Assn-

white paper issued SPEEDY INCREASE IN OUTPUT IMPERATIVE

-Rec. 9.30 p.m.)

LONDON, Jan. 21. A Government White Paper on economic eonsiderations afK'cting the relations between cmployers aiicl workers describes Liitain's industrial position as c'tremely serious. It says that t"e country must produce more 0. risk a lowering of the present living standards. Employers and union representat'ves on the National Joint Advisory Gouncil have endorsed the White I'aper's views which the Government is promulgating to all employers and v.f trkers. The document says that Industry ean ensure production by using all musterable manpower, particularly for essential supplies and, while costs and prices are steady, by vaising" the per capital output without prejudicing earnings. Increases in wages since the war began approximate £1,200,000,000 annually and the Government tiopes to stabilise these gains as a permanent advance in real wages. "W e must. and very quiekly, begin 1. maintain and seek to improve our li-'ing standards entirely by our own eiVorts. AVe must soon begin to repay some of the external borrowing, which has enabled us to maintain the existing standards. A speedy and substai^tial increase in British industrial output, with the maintenance of quality is highly imperalive,." the Paper says. Great Labour Shortage That policy is required to improve afliciency and productivity, for which ■industrial management and workers • like as well as th'e Government, are : i sponsible. The document says that -there is iar more work than men and women to do it. Britain's working population as at Xovember .'10, 1946, was 20,324,000 or 270,000 ahove that at June 30, 1939, and included 2,985,000 in the forces, Auxiliary Services, sei-vice -iqiply and manufacture, National and Lccal Government, Services .•ntertainment and sport, which was 81.5,000 above June* 30, 1939. The oalance of workers at November 30, 1940, was thus 15,339,000. which was • decrease of 241,000 as at June 30, 1 939. There were 1,440,000 workers making exports at November 30, 1946, which was 500,000 below requirements. There will be an cverall labour shortage for years and Britain can only pay for imports by using the American and Canadian loans, which gave her a short breathing space. -'We must make sure that on price and quality, we can sell our goods. Tlie rise in production costs may make it impossiblc to pay our way and buy all the imports we need," it adds. Subsidies, which with price i-ontrol had kept internal prices steady since 1941, was costing the Kxchequer nearly i'4 00,000,000 this financial year, of which food was taking £364,000.000. Production Less than Income The document. says that the only way to balance tlu* purchasing power and the available goods is to increase production. British incomes, after Ihe payment of incOme tax exceed £7.000,000,000 whereas the available goods and services are only £6,000,000,000. ''The country needs increased production per annum as well as per hour. The Government is doing everything possible to minimise the ihuiger of depressions abroad and preparing to counteraet any home depression." says the document. "Apart from these dangers a high demand is likelv for British products in the forseeable future and prolonged had trade and unemployment should be a thing of the past if prices are right.

"Employers and workers must do everything possible to increase production. Anything less than high production endangers full employment. "The Government will prevent unregulated increase in prices of essential goods. Industry must steady costs of production, man essential undermanned industries, and, ahove all, increase production." Big Issues To Be Debated By Parliament LONDON, January 21'. Steps are to be taken to bring home to employers and workers in Britain the seriousness" of the industrial situation as set out in the Government's White Paper, which was puhlished today. A panel of speakers has been arranged. Headlines in the morning paper s give a foretaste of what they will say: "We are warned, work or hust," and "Work harder or live UTAVCo"

The White Paper recalls how the country's economic system was deliberately distorted during the war, when Britain sold at least one-half of her overseas profits and assets, and went into debt. She is still running into debt, and cannot go on for long living on foreign loans. The White Paper says that what manpower there is must he steered into the most important jobs and the output per man must be raised. If production is increased, there will be no fear of unemployment for many years, but if it is not, there will he a lot of unemployment arid a lower standard of living for everyhody. The whole economic state of the nation will he debated in the House of Commons next month. An economic correspondent says that this economic Budget or "Manpower Budget ' stands out in a 'programme confronting members when they reasaemble to-day after the recess.