STATE CONTROL

Otago Daily Times, Issue 27517, 11 October 1950, Page 7

STATE CONTROL

British Steel Industry CHANGE IN FEBRUARY NZP A—Copyright Rec. 8 p.m. LONDON, Oct. 10. Britain’s steel industry will pass under Government control on February 15, 1951, the Ministry of Supply announced last night. The Labour Government will take over control under the Iron and Steel Act of 1949, which provides for naationalisation any time in 12 months after January 1 next year. This Act was upheld by v Parliament last month when the Conservative Opposition censure motion was defeated by 306 votes to 300 in the House of Commons. The Daily Express says 92 major British steel companies will be affected by the Government’s decision. The switch will be effected by taking over securities worth £350,000,000 from the existing shareholders, who will receive compensation in British Steel Corporation stock guaranteed by the Treasury at prices already fixed by the Government. The Government announcement set off a new spate of suggestions of an early general election. Political quarters had not expected the new Steel Corporation—which came into being only a week ago—to be ready to take over the industry so soon.

Some commentators said the Conservatives had hoped that a general election might intervene before the formal transfer could take place, and now they are likely to make renewedsefforts to force an election within the next few months.

It is also suggested that the date has been fixed by the Government to fit in with an election campaign in the spring, but usually well-informed quarters said no particular significance should be attached to the February date. It ''is simply the earliest practicable date at which the switch over is possible. Conservatives’ Resolution

The terms of the emergency resolution on steel nationalisation and defence, to be moved at the Conservative Party Conference at Blackpool on Thursday, have been announced. They follow closely on the lines of the Opposition’s attack on the Government during the recent session of Parliament. The resolution states:

“ That this conference, fully supporting the action of the United Nations in Koreai and recognising that the peace and security of the free world cannot be achieved unless its defences are immediately strengthened by a united effort, most strongly condemns the Government’s decision to nationalise iron and steel, thus dislocating a vital industry and dividing the country in bitter party controversy at a time when natidnal unity is imperative.” The resolution adds: “ This conference further pledges the Conservative Party to promote a foreign policy carried out in closest association with the British Empire and Commonwealth, the United States, and our European partners, the purpose of which shall be to secure peace by negotiation from strength.”