§ Mr. J. H. Osbornasked the Minister of Power what representations he has now had from the steel industry and other organisations about alternative proposals to nationalisation as outlined in the White Paper on Steel Nationalisation, Command Paper No. 2651; and whether he will summarise these proposals in a further White Paper together with his reasons for rejecting them.
§ Mr. MarshThe Office Bearers of the British Iron and Steel Federation handed me at a meeting on 10th May, 1966, proposals for a new supervisory authority for the steel industry. A summary of these proposals was published by the Federation on 14th June. I had already explained the Government's views in the following letter of 24th May to the President of the Federation which was also published on 14th June
I have considered your suggestions very carefully with my colleagues. The facts are, however, that the Government have been returned to power at two successive General Elections on the basis of a programme which clearly included public ownership of the main part of the steel industry and that the implementation of your proposals would not fulfil these commitments. Moreover, under your proposals, rationalisation of the structure of the industry would be slower and less complete than under full common ownership of all the main producing units, and the continued existence of separate companies with their own shareholders would make it impossible to secure the full advantages of positive central planning of investment, production and marketing over the main part of the industry as a whole.Again, in the circumstances of the steel industry, a proposition under which the State became a major shareholder of the equity of individual companies would leave their 27W Directors with an awkward divided responsibility to the State on the one hand, with its concern for the most efficient development of the industry as a whole in the national interest, and to the private shareholders on the other hand, whose legitimate concern it would be to secure the maximum return on their investmentFor these reasons and to end uncertainty the Government have decided that a Bill to implement the White Paper proposals for the future of the steel industry should be presented to Parliament soon after the Whitsun Recess.I know that our decision will be unwelcome to you, but I do assure you that it has been reached only after careful thought and because we are satisfied that this is the right course in the national interest. I realise that you and your colleagues will want to make your general views known to Parliament and the public. I very much hope, however, that in the light of the Government's decision, you will in the interests of the industry and the nation co-operate in the practical implementation of these proposals and in securing the best technical organisation of the nationalised industry, which the White Paper leaves flexible. I shall get in touch with you again very shortly and I hope we shall be able to arrange fruitful discussions on this basis.
§ Mr. Roy Hughesasked the Minister of Power whether steps have been taken to consult the appropriate trade unions in the steel industry concerning the participation of worker in the democratic management of the industry.
§ Mr. MarshMy predecessor consulted the Trades Union Congress in the preparation of the White Paper and I resumed these consultations at a meeting on 16th June. My predecessor and I have also had discussions with individual unions and union officials in the steel industry.