Greymouth Evening Star. TUESDAY, APRIL 23, 1946. Loose Talk

Greymouth Evening Star, 23 April 1946, Page 6

Greymouth Evening Star. TUESDAY, APRIL 23, 1946. Loose Talk

W E Avere told by the local Labour press on Saturday morning that in announcing in the House of Commons the British Government’s decision to nationalise a portion of the iron and steel industry, the Alinister of Supply, Mr. John Wilmot, said that public ownership would be. welcomed by a large body of opinion in the industry itself. Mr. Wilmot merely said that he “considered” such would be the case — and after all that is only Mr. Wilmot’s opinion. There is obviously a wide difference between what he did say and what the Labour press, to suit its own political ends, would like people to believe he said. Another extraordinary statement in the Labour press was that it was obvious that “capitalists were now looking to the State for the financing of the expansion necessary if Britain is to maintain her position in the forefront of this basic industry.” This assertion also has no basis in fact. No one challenges the right of the Labour press,—or anyone else —to ventilate its views about the efficiency of this or that British industry but it is incumbent on it to base its criticism on facts. Anyone who accuses the British iron and steel industry of inefficiency and of incapacity to set its house in order without socialisation, is guilty of a gross distortion. During the five years preceding the Avar the industry had partially completed a large programme of reorganisation, which had raised many of its units to the highest standards. Further progress was perforce suspended by the Avar, but it was among the first of the major industries to prepare its post-war reconstruction plans Avell in advance. Programme Ready.

]944 the industry was ready with a vast detailed programme of expansion and modernisation involving an expenditure of over £1'20,000.000. This programme had, of course, nothing to do with fears of nationalisation, as it was in being before a general election was even mooted, and it formed the substance of the report which the British Government is stated to have studied. The industry, moreover, did not wait on political decisions. The firm of Dorman Long, for example, announced in November last an. £8,000,000 scheme on which it intended to start operations in a month or two. The view is hold in commercial circles in Britain that if the industry were allowed to put through this programme without political interference it would bring itself abreast of the most efficient rival anywhere in the world. It is interesting- to note in this connection recent remarks by Mr. Wilmot, the self-same Socialist Minister hvho had the unhappy task in the .House of trying to justify the Government’s decisions. .Mr. Wilmot earlier had occasion to make highly complimentary references to the achievements of the precision tool industry, whose raw material is steel. It will, also not have escaped notice that when earlier in the year the industry made a modest increase—the first for five yeal . s —of five per cent, in prices for most of its products to cover rises in costs (e.g. coal) over which it lias no control, it actually reduced certain prices, notably in the ease of motor body sheets. In advance of the reorganisation programme it may be that the prices of British steel are somewhat higher than the American, although this would not be surprising in view of the much more favourable, conditions m which the' American industry has been able, to work during the war. There does not seem to be room for doubt, however, that the industry would be capable of rectifying any disparity by its own devices. Socialist Propaganda.

In the face of these facts, the local Labour press would do well to think again, before trying to make any more propaganda for Socialism by suggesting that the British iron and steel, industry is effete. It would be better occupied in pointing to New Zealand’s unhappy experience of Socialist “enterprises.’ An extraordinary feature about the British Government’s announcement was the revelation that it has no clear-cut plan. It does not even know how much of the. industry is going to come under the nationalisation scheme. This suggests that the real reason for its hasty decision is the need for a manoeuvre 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 considered. 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 defeat the Communists. Mr. Churchill’s description of the Government’s announcement —“a pure politica ramp” —would appear to be well justified.