Not Afraid
Page 79
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The reason that the Society opposes these provisions is not, as surmised by Mr. Heard, because its members fear competition, but because they oppose nationalized manufacture as a principle.
The nationalized chassis and body manufacturers are generally smaller than their private competitors, and would have to be expanded in order to compete directly with private industry. Any plans to export will entail the setting up of an overseas sales organization with a chain of franchised dealers and distributors. These would involve considerable expenditure of public money, as the holding company is prohibited from borrowing elsewhere.
The Bill provides for the making of loans to the holding company upon such terms as to interest, etc., as the Minister, with the approval of the Treasury, may from time to time direct. It would thus be open for the Minister to advance public money to these concerns_ at rates of interest lower than those available to their private competitors.
I think that your readers will agree that the prospect of State-subsidized participation in the motor or any other industry is most undesirable.
W. T. WILLIAMS, Secretary, The Society of Motor
London, S.W.1. Manufacturers and Traders, Ltd.