§ 46. Mr. Denmanasked the Prime Minister (1) what authority has been appointed for the economic planning of the nation's war efforts, including such aspects as finance, supply of commodities, economic warfare, and stimulus of exports;
(2) whether it is proposed to set up a body to plan the economic war efforts of the Allies?
§ The Prime MinisterAs the reply to these questions is rather long, I propose, with the permission of the House, to make a statement at the end of questions.
§ Later—
§ The Prime MinisterThe responsibility for co-ordination of all branches of the nation's war effort in whatever sphere rests of course with the War Cabinet as a whole. In practice the method adopted is to effect the solution of particular problems by means of consultation between the Ministers concerned, and in order that the results may be brought before the War Cabinet, some member of the Cabinet is entrusted with the general direction of these consultations.
In the case of economic and financial policy a Committee has been set up, under the chairmanship of the Chancellor of the Exchequer, composed of the Ministers concerned with the various aspects of the subject. The duty of this Committee is to keep under review and to coordinate the working of Deparements in relation to the economic effort of the country as a whole. This Committee is also responsible for supervising the arrangements which have been made for Anglo-French economic co-operation.
Lord Stamp has been asked to assist this Committee by becoming Adviser on Economic Co-ordination. Assisted by Mr. Henry Clay and Mr. H. D. Henderson, Lord Stamp had for some time prior to the outbreak of war been advising 29 upon the economic war plans of the Government, giving guidance and assistance to the Departments concerned. In association with the Ministerial Committee to which I have just referred, he will continue to review our current economic plans and activities in order to propose to the Minister or Ministers concerned ways of filling any gaps that may be found to exist or remedies for any inconsistencies that may be discovered.
There has also been set up under the Ministerial Committee an inter-Departmental Committee of officials composed of the permanent heads of the Departments concerned. Lord Stamp will be President of this official Committee.
As regards Anglo-French economic cooperation, arrangements already exist for discussion between representatives of the two Governments on many common problems. Further arrangements are under consideration with a view to establishing the requisite degree of consultation, as well as the means for joint action.
§ Mr. DenmanIn view of the fact that our economic effort obviously needs concerted direction and drive, will Lord Stamp be a whole-time worker, or is there anyone who will be a whole-time director of these activities?
§ The Prime MinisterI do not think that Lord Stamp will be a whole-time worker, but he will be able to give a very large part of his time to this work.
§ Mr. ShinwellDoes the right hon. Gentleman appreciate that our economic activities may prove to be the most fundamental of all our lines of defence, and that there is essential need for the effective co-ordination of all our economic activities, including finance, supply, mobilisation of labour, of exports and of imports and the like; and would not he reconsider the whole matter, and, instead of appointing a very large number of committees, with voluntary assistance, appoint some member of the War Cabinet who would actively function in all these matters?
§ The Prime MinisterNo, Sir; I do not think that it would be possible for any single individual to function without consultation with the Ministers who are responsible for the Departments concerned, and it is because we do realise 30 the importance of the whole subject that we have set up this Committee, which we believe will be the most effective way of dealing with them.
§ Mr. ShinwellWhile I appreciate the need for consultation and for active liaison between the Board of Trade, the Ministry of Supply and the Ministry of Labour and the like, does not the right hon. Gentleman agree that to have someone directly responsible not only to the War Cabinet but to this House and to the country for the co-ordination of all these activities is much better than the establishment of a large number of committees?
§ The Prime MinisterI do not know why the hon. Member says "a large number of committees." I mentioned a ministerial committee and an inter-departmental committee, and I do not think that we could do without either of these. As for the general responsibility to the House and to the country, it must rest on the War Cabinet as a whole, and my right hon. Friend the Chancellor of the Exchequer is to act as chairman of this Committee, and he will be the individual Member of the War Cabinet who will be specially responsible.
§ Mr. AttleeWould it not be better to have some Minister who could give his whole time to this economic question, and not to have part-time attention given to it by one who, I should have thought, has quite a big enough job already?
§ The Prime MinisterIt is very difficult for me to meet all these different points of view. One point of view which has been urged upon me—I am not sure that the right hon. Gentleman himself has not taken part in the suggestion—was that the War Cabinet ought to be made smaller than it is at present. I do not see how it could be made smaller if you added more members?
§ Mr. Lees-SmithWill Lord Stamp have any staff or will the work be done in his own time?
§ The Prime MinisterNo, Sir; he will have the secretarial staff of the Cabinet available.
§ Commander Locker-LampsonWill any Member of Parliament be allowed to sit on this committee?
§ The Prime MinisterYes, Sir. The members are all Members of Parliament in one House or the other.
§ Sir P. HarrisWill the right hon. Gentleman consider making use of some economist, other than those named, particularly those who had very extended experience during the last war, and who, if used in these days, could give the Government the benefit of all the experience they obtained during those four critical years?
§ The Prime MinisterYes, Sir; we are anxious to take advantage of the experience of anybody who can help, and I do not think that the arrangement I have suggested will exclude that.
§ Commander Locker-LampsonDo I understand that back benchers who are not in the Government will be called in?
§ The Prime MinisterI am obliged to my hon. and gallant Friend. I shall be glad to accept any assistance that can be given.
§ Mr. AttleeIn view of the statement which has been made by the Prime Minister, we shall take an early opportunity of raising the whole question of the economic direction of the war.