Return to Private Enterprise

In the showcase of British Socialism, perhaps the biggest trophy is the nationalization of steel. Winston Churchill's Tory government came to power pledged to denationalize the industry. Last week, with surprisingly little fuss considering all the hours of campaign oratory once devoted to the subject, the House of Commons voted 304 to 271 to return the steel companies to private ownership. The significance of the step was more in the attitude than the act. The Tories hope to restore what Winston Churchill's Supply Minister (and son-in-law) Duncan Sandys calls "the invaluable stimulus and driving force of private enterprise."

An iron and steel board, responsible to Parliament, will be set up to retain virtually all the powers over the industry that the government has now: the board will fix prices, regulate capital development, even import raw materials if it thinks they are needed.

Labor's nationalization act never disturbed the basic structure of the steel firms; instead, it provided that the government buy their stocks. Under the new law, a government agency will sell steel stocks back to private owners, but this will take months of prolonged haggling. Laborites are trying to discourage investors by threatening to nationalize the industry again if they return to power. But current production--under nationalization --is high (352,400 tons weekly). Despite Labor's threats, the City, London's Wall Street, is already showing a lively interest in iron and steel.

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