HL Deb 27 October 1953 vol 183 cc1378-9

3.10 p.m.

LORD MACPHERSON OF DRUMOCHTER

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they have anything to report to the House about the result of the special study which the Paymaster General stated was being made during the economic debate on the 29th April about the plans to cope with any sudden change in economic conditions resulting from some material reduction in the armament programme, particularly in the United States of America, and whether Her Majesty's Government can say if any plans to deal with this possibility have been made.]

THE EARL OF SELKIRK

My Lords, the strict and short answer to this Question would be "No." It would not be possible to announce in advance details of the plans which might be put into operation should there be a slackening in world trade. Such plans must inevitably depend on the circumstances at the time. The noble Lord can, however, rest assured that the Government are making a continuing and special study of the problems which might react adversely on the policy of Her Majesty's Government of maintaining a high level of employment. Such a study is no more than common prudence. It does not imply that we expect any slackening in world trade; but it is a recognition of the common duty which we share with the United States of America, and indeed most countries of this highly integrated world, to ensure that any tendency which appears likely to lower the general level of employment is quickly countered by appropriate and considered action. We hope further, now that our economy has become rather less rigid, that it will be more readily adaptable to meet changes in the world economy which must always be expected.

There are, in any case, limits to what could be done by one Government alone in the economic field, and the details of our policy would in large part depend upon the policies of other Governments, notably those of the United States of America, Canada and the other Commonwealth countries, and the countries of Western Europe. Her Majesty's Government will therefore continue to work side by side with the Governments of these countries towards the objective of economic strength and independence.

The noble Lord refers specifically to the armament programmes. No material reduction in these programmes is, unhappily, yet in sight, so that the conditions which the noble Lord foresees are not yet imminent.