The Wanganui Chronicle THURSDAY, SEPTEMBER 21, 1950. BRITISH GOVERNMENT WINS

Wanganui Chronicle, 21 September 1950, Page 4

The Wanganui Chronicle THURSDAY, SEPTEMBER 21, 1950. BRITISH GOVERNMENT WINS

QEi’ISIOX of tlie British Labour Government to nationalise the iron and steel industry and endorsement of that action in the House of Commons puts Britain a step nearer socialisation of the whole of her industrial wealth. That there is wide divergence of opinion as to the wisdom of nationalising that basic industry has been known for a long time, and time will prove whether it is wise or unwise. Management of industry by the people, for the people has not always been happy. Where some qualified people can, inspired by personal incentive, make a success of an industry, all the people, represented by the State, have not been able to do so. We have instances of it in New Zealand. In theory it is a wonderful thing to pool the profits of an industry, on the assumption that all should benefit from what it produces. But when industry makes losses those who are loudest in their desire.' to have it State managed grumble the loudest when they have to foot the bill. Whether an industry is privately owned or State owned, the same economic principles apply—if it is selfsupporting all is well, but if it is not somebody must make good the losses. The British people have now taken upon themselves vast iron and steel undertakings, having looked at them from without. Now they must accept responsibility for management and this at a time of extreme national danger, ■when steel is a priority in defence. The fact that that responsibility is to rest on the State rather than private owners will in no way alter the difficulties and basic economy of the industry. In fact, if other State managements are to be taken as a guide, the industry will face an even greater burden than before, because the State relies too easily on the public exchequer. State undertakings make good the losses from the pockets of the people, but when they return a profit the taxpayer receives his reward, not in something tangible in the sense that he receives a dividend, but he should receive it in reduced taxation. In these days of mounting taxation it is hard to convince him that he is any better off with the State managing his industry than he was when it was in private hands. It will be interesting to see how the people of Britain manage their new vastness in the industrial sphere. If the industry loses, they will know where to lay the blame, but that will be small compensation for having to pay the piper. If the Statemanaged industry returns a profit the taxpayer will hope to share that profit by paying a smaller bill to the coffers of the State. If his bill is higher and iron and steel are profitable, he will begin to realise that it might have been better after all to have left the industry to those who knew how to manage it.