Orders of the Day — Budget Proposals and Economic Survey

Part of the debate – in the House of Commons at 12:00 am on 12 April 1948.

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Photo of Sir Alexander Spearman Sir Alexander Spearman , Scarborough and Whitby 12:00, 12 April 1948

What I tried to say was that right hon. Gentlemen on this side had expressed repeated warnings on all the four points I have raised. I do not want to take up time by going into the whole galaxy of inflationary policy, but I say that, on those four points, there have been repeated warnings which have been entirely ignored. Some hon. Members opposite appear to be rather jubilant about the present conditions. I think that that is a most unfortunate thing, and it must confuse the country. It may cause great harm, and I would suggest to them that they should take note of a paragraph which I will quote from the Economic Survey. Paragraph 243 states: Our situation is, therefore, such that, without further substantial external aid, we can have no hope of recovering equilibrium at a reasonable standard of life within the next few years. And elsewhere—paragraph 50: dislocation would be widespread and it would be impossible to avoid large-scale unemployment. Paragraph 28 states: Clearly, with our financial reserves at so dangerously low a point, we cannot afford a heavy investment in additional materials. But clearly also such an investment would bring a rich return … I do not think that there is much to be jubilant or complacent about in a situation in which we cannot even buy the raw materials necessary for the use of our people in this country. The President of the Board of Trade compared our production with other countries. I am not so concerned about a comparison with other countries in Europe of whose conditions I am not aware, or in America, where production has gone ahead so immeasur- ably greater than here, but I am concerned about the failure of our production to be in proportion to the expenditure indulged in by the Government. We have breathing space by the passing of the E.R.P., and I think that, in this House, we can nearly all of us join with the Chancellor in his very genuine and deep tribute of praise and thankfulness to that very generous people for what they have done.

May I, for a moment, if it is not thought too officious, as I have lately been in the United States, make one short comment? In the United States great attention is paid, and considerable respect is given, to what is said in this House. In the United States they do not know of the importance or unimportance of different Members. What they know is that they are Members of Parliament, and consequently, when someone like the hon. Member for Nelson and Colne (Mr. S. Silverman) gets up and talks about America as a "cheap moneylender" they do not realise the limitations of the hon. Member, as we know them so well, and they merely think of him as a Member of Parliament. Consequently, the damage of the reckless words said by the hon. Member can do immeasurable harm. We should all bear that in mind.