GREAT BRITAIN: Blank Check

Britain’s socialist government controls prices, production, distribution & consumption through a hodgepodge of wartime emergency regulations enforced under the Supplies & Services Act. The act is now subject to annual review by Parliament. Last week the government gave notice that it would introduce a bill to establish all the economic controls it wants on a permanent statutory basis.

In the King’s speech (written by the Cabinet) at the opening of a new session of Parliament, the proposed bill was explained as a measure “to defend full employment, to ensure that the resources of the community are used to best advantage and to avoid inflation.” Said Opposition Leader Winston Churchill: “It seems to me that this vague language for giving all kinds of tremendous powers to the executive … goes further than anything I have seen before. This is not planned economy. This is a blank check.” Replied Prime Minister Attlee: “I am quite sure that any government would find it necessary [to maintain essential controls] in the world position we have to face today [but it] should not be carried on by the hangovers of the defense regulations renewed from year to year . . . There ought to be legislation which would define the position quite clearly.”

By avoiding any further major nationalization plans and deliberately choosing to define its position on permanent economic controls in a year of increased defense spending and shrinking EGA funds, the Labor Party had isolated the issue on which it would like best to fight an election, if it has to.