POLITICAL STORM

Greymouth Evening Star, 20 April 1946, Page 8

POLITICAL STORM

NATIONALISATION OF STEEL ' INDUSTRY

COMMUNISTS’ EXPLANATION

LONDON, April 19.

Britain’s Labour Government is facing a first-class political storm over its decision to nationalise the iron and steel industry. The opposition, led by Mr, Churchill, is supported by every national daily newspaper, with the exception of the Labour Daily Herald. Newspapers say that the Iron and Steel Federation was invited to submit a report on modernisation and reequipment of the industry, and the report has been in the hands of the Government for about four months. The Government welcome it as “an important contribution to the planned development of this basic industry,” but it has not published the Report. There has been no suggestion that the industry is less efficient than others or that its plans for modernisation are inadequate. Trade figures demonstrate that iron and steel is the greatest individual contributor to Britain’s rising exports, with the industry employing 223,000 people compared with 206,000 in 1939. “Has No Plan”

ndb HU r ian The Government is going to establish an Iron and Steel Board, whose first duty will be to consult the industry. Opponents of the Government say it has no plan nor does it know how much of the industry it is going to nationalise. It will take at least one year before any plan can be drawn up, and it is estimated that the Nationalisation Bill will not come forward until 1948. This delay, it is said, will cause paralysing uncertainty. Iron and steel is the most complicated of all industries, with all big firms engaged in subsidiary and complementary businesses. There are fears that the Government action will have grave reactions throughout industry as a whole. The political correspondent of the Daily Mail says: “The Communists have the explanation. The Communists believe the Government’s action is nothing more or less than a ministerial plan to rally trade union support to the Cabinet’s side in readiness for the annual Labour Party conference at Whitsun, when the Communist appeal for affiliation will be received. “It is said that the Socialist Ministers are prepared to do anything, even nationalise a vital industry, to swing the vote in their favour and thus prevent the Communists winning affiliation. This might be denied in Government quarters, but it has been rumoured at Westminster for several h p nce Mr. Churchill s outburst. The Dailv Herald says nationalisation of the" industry is “good business,” and says the Government is carrying out its election promises. Indefinite Degree The Times says the industry is promised nationalisation to an indefinite degree at an indefinite time. The present prospect of a transitory regime, destined to be followed by Elastic changes, must have, to say the least of it, a seriously unsettling effect,” says The Times. The final change of ownership when it comes is likely to happen at a time when this country is facing the full pressure of foreign competition, when the processes of domestic reconstruction will be far from complete, and when the need for manpower in works of construction will still be as pressing as to-day. Here surely is a plan which, by its very nature, is bound to make the worst of both worlds.” The Manchester Guardian says this is the most audacious decision the GoI vernment has yet taken in its domestic policy. While it is within the Government’s mandate, the practical 'difficulties of taking over such a com,plex industry are so appalling that this particular point in the party s programme has always been legalded, I even within the Labour movement, as , an objective to be reached by stages.