Economic Advisory Unit

I have furthermore to inform hon. Members that Government has set up an Economic Advisory Unit which will consist of the Economic Adviser, Sir Sydney Caine, and two full-time assistants. The purpose of this Unit is that it should give advice to the Government on general economic policy, on the programme of capital investment, and on the broad economic aspects of social policy.

It is now, Sir, as you are aware, the normal practice, both amongst our immediate neighbours and in other countries of the world, for advisory work of this nature to be entrusted to a unit entirely independent of the ordinary executive departments, and it is that precedent which we seek to follow.

The Economic Advisory Unit is to be attached for the present to my office, but it is my hope, as our constitution develops, that some other arrangement will be found preferable, and I have in mind its attachment to the future Minister for Finance.

Members of the Economic Advisory Unit will be advisers of all Ministers concerned with economic policy, and it is proposed that this Unit should work to a Ministerial sub-committee of the Council of Ministers on economic matters. To assist in the preparation of subject for discussion and decision by Ministers, a Committee of officials from the principal interested departments is also being formed. The Economic Advisory Unit itself will have no powers of executive authority or control, but it will work in closest contact with existing departments, and it is the intention that it should be kept small in size and should make maximum use of the statistical and other technical facilities of existing departments.

Among the matters which we expect the Economic Advisory Unit to examine in the immediate future are the various recommendations of the International Bank Mission, including the details of the proposals for the Central Bank, whose establishment we are very anxious to expedite, Sir; the establishment of an Industrial Development Corporation; the formation of a long-term development programme; the broad nature of future budgetary policy, and measures for the establishment of minimum standards of livelihood.

It is our intention that the Unit should keep in close touch with those concerned with economic policy in the Federation.