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Page 448

Page 448

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By scaling down these rising programmes sane jobs which would

otherwise get in 1950 would not beauty449fH•

16.

The nature and scale of the problem can be seen from the Table in the Appendix to this report, which shows the trend of investment as brought out by the last review made by the Investment Programmes Committee. It will be noted that Departmental estimates suggested an increase over the level achieved in 1948 of no less than £300 millions in 1950 rising to £500 millions in 1952. The pressure of demand comes mainly from the public sector, as is shown by the following figures:

1948

1952

1952

1952

Depart-

Actual

mental Estimate

as per cent of

1948

I.P.C. Recomm- endation

SM.

ᎦᎷ .

SM

Fuel and Power

164

326

199

279

Transport & Com-

munications

287

371

129

309

Shipping

77

49

64

49

Agriculture, etc.

84

97

115

81

Iron and Steel

34

39

115

39

Manufacturing

Industry

400

530

132

450

New Housing

322

282

88

253

Other Social

Services

70

222

317

147

Administration &

Defence

58

86

148

75

TOTAL: Principal

Sectors only

1,496

2,002

134

1,682

Apart from manufacturing industry, where the estimate for 1952 is of doubtful validity, it is quite clear that major reductions in 1950 and later years can be secured only by checking the rate at which new commitments are undertaken in the socialised industries and in the social services. It is by this approach and by allowing only a modest increase in the provision for manufacturing industry that the Investment Programmes Committee in their recent report recommended cuts of £200 million for 1950 and £300 millions for 1952. The outs for 1950 have been provisionally approved with minor increases for education and certain Home Office services, thus reducing the prospective total investment for that year from £2,326 millions to £2,123 millions • Final decisions on the recommendations for '1952, which would reduce the proposed programme from £2,526 millions to £2,206 millions, have yet to be taken.

17.

The prospects of reducing the volume of investment for 1950 and later years below these levels turns on the following factors:-

(a)

The extent to which private firms and individuals

and also the public corporations would be induced spontaneously to limit their investment plans Page 4498f662 of any general deflpȧtery ofggqures

that may be adopted (paragraph 7 above).

emy of geures

estimate can be placed on this.

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