DEFENCE AND INDUSTRY

Nelson Evening Mail, Volume LXX, 17 June 1936, Page 4

DEFENCE AND INDUSTRY

REORGANISATION PROGRESS (By Air Mail—From Our Own s Correspondent) v LONDON, 14th MayvSv, The Government, I is making steady progress in the negotiations which it is carrying on for the reorganisation of industry for defence purposes. Engagements have already been entered into with a number of motor manufacturers for the; production of aircraft engines, and;.; contracts are being discussed with two large firms for the building of aircraft frames on mass production scale. In one case, I am informed, the negotiations are nearly completed. The reorganisation plans have to provide against two contingencies, firstly, to meet the demands of the defence programme as laid before Parliament, and, secondly, to provide a shadow industry capable of very rapid expansion to meet any possible emergency that might arise in the future. For the present, attention is concentrated upon the first and im-. perative need, but the Government is not losing sight of the alternative possibility. Meanwhile, responsible officials are studying the question of the control of profits, and as it is found that there will be great variety in the conditions of contracts, it will be impossible to frame one general rule for controlling profits. The, Government, however, is confident that there will be no repetition of wartime profiteering, and that the programme can be carried out without incurring extravagant expenditure of public funds. As regards the labour aspect of the scheme, the Government sees no call to approach the trade unions at the present moment, and will not intervene between employers and workers unless there should be reason for so doing.