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Plan for U.K.
Steel Industry
LONDON, Nov. 16 (A.A.P.).
'Moving the second reading of the
Iron and Steel Bill in the House of Com
mons, the Minister for Supply (Mr.
Strauss) gave two main reasons why the :
Government was introducing the measure.
Mr. Strauss said' the Go- :
vernment believed the steel
Industry could not become
either efficient enough over a
long period to produce cheap
steel in ample quantities or
responsive enough to national
requirements as long as it re
mained under private owner
ship.
"It is generally conceded,"
he said, "that the return to
unregulated private ownership
is out of the question. Indeed,
responsible leaders of the in
dustry agree that private
ownership must be tempered
by State control "
"The Iron and Steel Federa
tion is, in fact, a vast mono
poly' or cartel, possessing great
power, without responsibility,
over the people's well-being.
"All Is not well with the In
dustry's efflcimcy. The pre
sent management Is good, but
a substantial proportion of the
plant and equipment Is anti
quated and inefficient.
"The Government refuses to
perpetuate an arrangement
where, in what might be a mat
ter of life or death for the
nation, it can at any moment
be thwarted by the steel mas
ters' non-co-operation.
"But, because we wish to
avoid dislocation, we propose to
keep Intact the Identity of in
dividual concerns— the only
difference for them will be that
the ownership of securities will
change hands.
"Some spokesmen claim the
steel Industry is already effi
cient, and say British steel
prices compare very favorably
with those of any country ex
cept Australia.
"This argument is acceptable
only with serious qualifica
tions. It does not take into
account the effects of Govern-
ment subsidies and price con
trols.
"If we withdrew control of
price on scrap, and the British
steel industry had to buy mate
rial at the same prices as the
Americans, our steel prices, in
the main, would be above the
American prices, despite the
fact that American wages are
much higher:
"When directors are weak or
the management below stan
dard, a corporation to be set
up will cut out the dead wood
and appoint new men, many
of whom will be drawn from
ranks not normally considered
for posts of high responsi
bility."
Opposition cries of "Jobs for
the boys."
Mr. Strauss continued: "Un
der our plans the spur of com
petition as an Incentive to effi
ciency won't be blunted.
"The corporation will assure
that, in the allocation of ma
terials or decisions on prices,
no unfair advantage Is given
to publicly owned companies."
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