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5.

The measures recommended by the Committee and now submitted to the Cabinet for approval are as follows:-

Investment Programme

6.

The Committee recommend for approval from the proposals in paragraphs 7 to 16 of E. P. C. (49) 111 the follow- ing broad pattern of reduction to which the Investment Programmes Committee should work for the latter half of 1950:-

Fuel and Power

Transport and Communications

Agriculture, Fisheries and

Forestry

Shipping

£ million

25

10

3

Iron and Steel

Manufacturing Industry

15

New Housing

35

Other Social Services

12

.

Defence and Administration

5

Miscellaneous

35

140

Government Expenditure

7.

The Committee recommend for approval the items in Schedule I and Schedule II of E. P. C. (49) 111, including such

further economies in administration and in these services as it may prove possible for the Departments, in consultation with the Treasury, to secure in detailed examination. As regards Schedule III (items involving major Government policy outside the field of social services) the Committee recommend approval of items 1, 4 and 5, but, as regards item 3, recommend approval of item 3(c) only. The Cabinet will note that these items include dropping the Second Register of Electors each

year.

8.

9

As regards Schedule V (new services not yet in operation which could be abandoned or deferred), the Committee recommend a partial deferment of Legal Aid and the Lord President has undertaken to secure a reduction of £1 million in the estimate for the Festival of Britain.

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