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A Case Against Nationalization

13th September 1946
Page 25
Page 25, 13th September 1946 — A Case Against Nationalization
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Which of the following most accurately describes the problem?

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TRANSPORT, although an important 1 industry, can be more precisely described as a secondary industry, because it is not complete in itself, and its existence is justified only. by the service which it gives to others.

This was one of the points stressed by Mr. R. G. Meager, of Messrs. Dussek Bros., Crayford, when he addressed members of the Monmouthshire Centre of the Institute of Traffic Administration at Newport, on September 3, on "A Case Against Nationalization of Road Transport."

It was, he said, an all-important point to bear in Mind when cOnsidering this question. Those best able to judge were all convinced that they would receive better service from the industry under a system' of free enterprise, and, as far back as 1937, the Transport Advisory Council set up by the Government Of that time said in its report. that "the trader must be left with a free choice as to the kind of transport he used."

Close Contact Essential Demands made on transport were so varied, so unforeseeable, and so dependent on quick decision, that only . by intimate contact between the contractor and the user could the system be efficient.

Urging the importance of holding a public inquiry before taking steps towards nationalization, Mr. Meager instanced the position of Northern Ireland, where, between its inception in 1935 and three years later, the Transport Board lost some £400,000. He also quoted the case of London Transport, which, he said, had experienced many strikes that caused endless disruption of traffic.

Denying that State ownership of the industry was necessary to produce an integrated system, Mr. Meager declared that a co-ordinated service already existed. The State. as constituted to-day, restricted activity. It provided housing programmes and bricklayers, but no bricks; clothing coupons, but few clothes or shoes. Similarly, it would provide a transport service without suitable vehicles.

A Warning The present lull in the discussions did not mean that the Government had abandoned its intentions. Mr. Hynd, Parliamentary Secretary to the First Lord of the Admiralty, had said that public ownership of transport must be faced in the immediate future, and that it would be mentioned in the King's Speech in November. The necessary legislation would be put through in the next session of Parliament, according to Mr. Hynd's forecast.

Certain quarters were allowing and assisting an impression to be gained that the closer working of road and rail interests and closer agreement on rates would mean the creation of a monopoly, with a natural rise in rates. This impression, said Mr. Meager, if allowed to go unchallenged, could be disastrous. It was, of course, ridiculous, for the Minister of Transport had already removed the radius of limitation from the ancillary user, and if there were to be a general and unjustifiable increase in rates, the ancillary user would, quite naturally, obtain more vehicles of his own. Hauliers and the railways would not run the risk of that happening. .

Closer co-operation of road and rail would tend to create remunerative rates, which, at the,same time, would be sufficiently attractive to commerce and industry to reduce the advantages of vehicle operation by ancillary users.

PRIVATE ENTERPRISE CARES FOR WORKERS " THE future of industry—whether it shall be brought more closely under State control or whether it shall be progressively liberated from its wartime fetters—is a matter of the widest possible comern," said Sir Miles Thomas, vice-chairman of Morris Motors, Ltd., at the company's annual general meeting last Week.

To illustrate the achievements of private enterprise in the field of welfare, Sir Miles Thomas mentioned that Lord Nuffield personally gave his workpeople ordinary share capital to the market value of £2,250,000, and that the workers had received dividends totalling £876,000. Under the Nuffield scheme, employees with one year's service received one week's paid holiday, and those with five years' service two weeks. During 1945 the company paid the workers £139,254 for holiday time.

All employees, on completing six months' service, are supplied with a life insurance policy, and £135,227 has been paid out to dependents of employees under this scheme. A staff pensions fund and a provident and savings fund are also operated " I believe that the industrial progress of Britain—indeed, of the world— depends on the establishment of a community of interest between employers and employees. There must be an equitable spread of the benefits that accrue from industry," said Sir Miles.

INQUIRY INTO ROAD TRANSPORT WANTED

SOME of the arguments being made against nationalization can be grouped under the following headings: Absence of a mandate to the present Government to nationalize transport; failure of the Northern Ireland Road Transport Board; lack of success of State railways, and failure of the Ministry of War Transport's scheme during the past war.

That these points are faulty is propounded in Transport Plans and Britain's Future," by James A. Dunnage, F.Inst.T.A., M.I.I.A. The book is published by Industrial Transport Publications, Ltd., 18, Kensington Gate, London, W.8, price Is.

The author urges the Government to set up an impartial commission to make a full investigation of the industry. He does not favour State control, but thinks that a re-orientation of the road transport industry is needed. NEW POINT RAISED IN REINSTATEMENT CASE

THE question whether a reinstated employee had resigned or had been dismissed was raised before Lanarkshire Reinstatement Committee in Motherwell on September 3, when Mr. John Courtneya dt-iver of Airdrie, appealed against dismissal by = his former employers, Messrs.Felix Travers and Sons, Darngavil, near Airdrie. • The appellant's case was that, after demobilization, he successfully applied for reinstatement on May 4. On July 4, however, he had been dismissed, the reason given being that there was no work for him. Again, on August 29, he was told that his job was open.

He stated that on July I he was driving a 3-ton lorry belonging to the firm and had punctures, which resulted in minor damage to the vehicle.

Mr. Felix Travers, senior member of the firm, maintained that the appellant ' was not dismissed, but had asked for his " books." . He had previously informed Mr. Courtney that there would be no more work for him until the lorry was repaired.

The committee unanimously ordered reinstatement of Mr. Courtney as from August 31, with ccmpensation equal to eight weeks' wages. The employers indicated that they would appeal.

U.S.S.R. DESIGNS VEHICLE FOR METHANE FUEL

ANEW "natural-gas cylinder" motor vehicle has been designed by the Ukranian Institute of Automobile Transport, according to Moscow radio, which says that the vehicle operates on methane.

It is not stated whether the methane is gaseous or liquefied; both types are contained in cylinders, but of different kinds. The gaseous form is usually compressed into cylinders capable of withstanding a pressure of 3,000 lb. per sq. in., whereas the containers for the liquefied gas do not have to withstand pressure, but must be insulated against the entrance of atmospheric temperatures, to maintain an internal temperature of 163 degrees Centigrade.

DUNLOP TO HELP INSTITUTION

UNDER present-day conditions the endowments of the Royal Institution and its Davy Faraday Research Laboratory are inadequate. To help in this matter, the Dunlop Rubber Co., Ltd., has undertaken to contribute £1,000 annually, less tax, for seven years.

BEARING MAKER'S RESULTS

ANET profit of £127,371 is reported to have been made by Ran some and Mules Bearing Co., Ltd., on the past year's trading, against £123,227 a year earlier. A final dividend of 121 per cent., added to the interim dividend of 71 per cent., raises to 20 per cent, the distribution for the year to June 30.

MANCHESTER CAVALCADE lUIANCHESTER Cavalcade will take al place on Saturday, October 26, instead of October 23. The Society of Motor Manufacturers and Traders feels that the change will give the public a greater chance to view the show.