Inflation Inc.
Sir: It was refreshing to read Bill Jamieson's 'The inflation machine'. 1 only wish that our masters at Westminster and the Councils of the Accountancy bodies would read and understand the article.
The simple truth is that only a government can deal with inflation (only they have control of the money supply).
Very few people have the time or interest to read the contemplated reports except for pressure groups wanting material to advance their case.
It is not adequately appreciated that accountants will be reporting on occurrences generally more than a year old. It seems likely that entrepreneurs will be further restricted in their decisions; they are already restricted in all conscience.
So far as the Sandilands report is concerned, in seeking to ensure an adequacy of financial provision for replacement of fixed assets and stock, the aims are good but inflation will vary from time to time and it is inevitable that all plant and all stock does not require to be replaced. This is likely to result in making beneficiary companies attractive to bids by the Slaters etc, for their taxation advantages — and why not? Alternatively there will be a lot more British Leylands for the poor taxpayers' backs, many producing goods uneconomically or unwanted.
Tinkering with accounts is no alternative to an adequate control of the money supply, reduction of governmental (including local government) expenditure, reduction of taxation of businesses and individuals and greater freedom for all trade. Only so can this nation be saved from a very sorry fate.
John L. Rodrigues 13 Elm Grove, London SW19
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