Renationalization Not Justified--F.B.I.
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" THERE is no justification for the
proposal to renationalize the steel industry or long-distance road haulage," says a report on nationalization, published on Monday by the Federation of British Industries.
".Apart from ih.e direct effect on these industries, the indirect effect on the rest of industry must be profound. Notably, the steel-using industries cannot afford the-slightest loss of flexibility; nor can the country afford a further upheaval in the steel industry," it says.
Examining the records of the nationalized industries and the merits of free enterprise,the report " does not make a "case for the denationalization of industries already nationalized, but the country ought not to be content with their performance so far. Even the threat of further nationalization jeopardizes the country's prospects of prosperity."
The nationalized industries are stated to have taken more than a proportionate share of the total funds used for investment in the economy, although the railways have received less than a proportionate share of the capital made available to those industries.
Nationalization has, the report says. produced no discernible improvement in labour relations. It has, indeed, made them more difficult by destroying the worker's choice of employer within his industry, and by bringing the Government into the ringin important cases, of dispute.
Consumers' councils have not been effective. Parliament has been unable to devise methods to bring. the nationalized industries effectively to account. "The Parliamentary system is unsuitable for, the efficient control of industry, and accountability without control is meaningless." the report says.
The record of the nationalized industries makes it clear, that they have not fulfilled their sponsors' expectations of outstanding progress and improvement.
In their report, the F.B.I. clearly state their dislike and distrust of :Labour's threatened acquisition of equities, a move described as ." nationalization by the back door." Allegations of the decaying power of the shareholder are. refuted; the investor continues to play an active part in the provision of fresh capital.
Government ownership without effective control could result only in the stifling of industrial enterprise and growth.