NATIONALISATION OF IRON AND STEEL

Wanganui Chronicle, 2 November 1948, Page 6

NATIONALISATION OF IRON AND STEEL

DETAILS OF 3RITBH BILL LONDON, Oct. 29.—The British iron and steel firms which the Government proposes to nationalise will retain their own names, it was revealed today when details of the Iron and Steel Bill were published. Reuter’s diplomatic correspondent says this is a compromise. The firms will not be submerged in general anonymity.

Three hundred thousand iron and steel workers are employed by the firms which will be nationalised under the Bill. They constitute threetifths of the employees in the entire iron and steel industry.

The Bill sets up an Iron and Steel corporation of Great Britain, which will have a chairman and from four, to ten salaried members. The corporation will become the sole shareholder of all firms with an output above a specified tonnage. The firms taken over will be those engaged in the working, getting and smelting of iron ore, the production of steel and the shaping of steel by rolling. The corporation becomes a holding company for the firms and all their subsidiaries. Their securities will he transferred to the corporation on May 1, 1950, or any later date up to 18 months after the passing of the Bill, as the Minister may appoint. AS SEPARATE UNITS

The firms taken over are to remain separate units, to retain their own - names and to continue to make use of their goodwill and of all loyalties ■ and special traditions associated with them. The old managements will continue to be responsible, being asked to carry out such overall planning | of nationalisation as is considered desirable in the national interest. The Bill provides that firms will be free to compete with each other, as long as this does not clash with the general plan of the corporation, which will itself be subject to the directions of the Minister of Supply on question of broad national in- , terest. The powers of the corporation and the publicly-owned companies for . which it will be responsible will be j those now existing in the articles or - association of each company. The corporation must provide iron , and steel at prices, in quantities and , sizes best suited, in its opinion, to the J public need. : The corporat m's plans for de- , velopment, tre ning and research , must be on li .es approved by the , Minister of St pply. i The Bill provides that firms whose , output is below a specified tonnage i will be allowed to carry on without ; licensing arrangemeints. Firms in a ‘‘medium’’ capacity may expand their , production up to the basic tonnage figure for nationalisation, or double their present output, whichever is the less, hut will have to obtain licences for this expansion. CONSUMERS’ COMMITTEES Consumers’ committees are to be set up, the intention, broadly, being ; that every considerable body of consumers shall have an effective committee which can make recommendations on any problem to the Minister, who is authorised to give directions to the corporation. About £40,000,000 of invested capital will be brought within the scope i of State control by the Bill. One hundred and seven firms and all their subsidiaries .are to be nationalised. They embrace all companies annually producing 50,000 tons or more of iron ore, all firms producing 20,000 tons or more by smelting iron ore into pig iron in blast furnaces, converting pig iron and scrap into steer ingots, or shaving steal by hot roiling. -e Motorcar making is specifically excluded. Subsidiary companies to be taken over produce such things as tennis rackets, printers’ ink and constructional steel. Compensation for acquired securities will be made by the issue of "British iron and steel stock” equal in value to the securities. It will be based on Stock Exchange quotations on certain dates, on an average of six specified days. The Bill says the corporation must pay its way. The total issued capital (including loan capital qualifying for vesting under the Bill' of the 107 companies listed is Officially stated to be about £195,000,000. It is officially estimated that the amount of British iron and steel stock needed to provide compensation will be £300,000,000. "SPANNER IN THE WORKS” Reuter’s industrial correspondent savs that the contents of the Bill [ also came as a surprise to steel interests- They feel that the GovernI ment intends to take over certain • firms picked from the whole structure I of the engineering industry and that State competition with private firms ■ over he whole wide range of steel ■ and its allied manufacturing indus- ■ tries has found expression in the Bill. I They consider that the Bill gives the i State special Interests which may i complicate the Government’s guid- ■ ance and stimulation of industry as a r whole.