Manawatu Evening Standard. WEDNESDAY, APRIL 18, 1934 IRON AND STEEL.

Manawatu Standard, Volume LIV, Issue 118, 18 April 1934, Page 6

Manawatu Evening Standard. WEDNESDAY, APRIL 18, 1934 IRON AND STEEL.

A plan for tlie reorganisation of the British iron and steel industry has been completed and, according- to report, approved by the Treasury. This means the fulfilment of an undertaking given by the industry when the British Government gave protection to it through the tariff. The plan is the achievement of a National Committee of the whole industry, with the aid of sub-com-mittees and regional committees. A year ago it submitted to the Import Duties Advisory Committee for presentation to the Chancellor of the Exchequer a scheme which Mr Chamberlain, in a letter to Sir George May, chairman of the Advisory Committee, described as a real step forward and welcome evidence that the work on reorganisation was steadily proceeding. When the Import Duties Act was passed in March, 1932, the general tariff of 10 per cent, was applied to the industry. A month later the protection was increased to the extent of 334 per cent., and in May, 1932, "the duty on pig iron was raised from 10 to ; 33J per cent. These larger duties were granted on the recommendation of the Advisory Committee, which in its report of April 8, 1932, stated that they were “satisfied that the maintenance of a prosperous iron and steel industry is essential to the economic progress of this country, while, from the point of view of national security it must still be regarded as vital.” The .increased duty was temporarily imposed on a wide range of iron and steel products, and in October, 1932, it was extended for two years “subject to satisfactory progress beingmade in the preparation of the scheme of reorganisation, and in putting the approved Scheme into force.” This period gave the National Committee breathing space in which to make a thorough examination of the industry, which itself recognised the need of being placed upon a better basis to meet foreign competition. In January there was a hint that unless the National Committee completed its undertaking the tariff authorities would not recommend the continuance of the present protection. The inference then was that the industry was not prepared to adopt the scheme of reorganisation, which the National Committee had been at pains to prepare. The latest report rather makes it clear that this difficulty has been overcome, and though 'but the barest outlines have been cabled the scheme is to embrace the industry throughout the Empire, . Dominion members of the British Iron and .Steel Federation participating in a company to develop exports. Imports are to be controlled by quotas and co-ordina-tion sought of all the iron and steel enterprises in the Empire to recover lost world markets. The industry has been in difficulties for some considerable time. Before the War it produced 7,000,000 tons and imported 2,000,000. Two years ago production had declined by 2,000,000 tons and imports increased by 900,000 tons. Exports similarly had Shown a big de-

cline from 4,700,000 tons to 2,000,000. The industry is so representative of Britain and one of its greatest labour-employ-ing avenues that to place it on a sound basis to meet foreign competition has been the aim of the Federation. The intensity with which foreign interests have competed against the British producers has been noted by the National Committee, which stated that before the imposition of tariffs the industry was suffering' to an exceptional degree. In 1930 ,the result was that imports exceeded exports. In the reorganisation that is to be effected in the next five years this great British industry should be once again firmly established.