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Scope of the B488 of 253
Page 188 22. It is intended that all the main processes which make up thron and steel industry, set out in the Appendix, shall come within the purview of the new Board, thus bringing the whole industry again under the super- vision of a single authority and ending the present distinction between nationalised and non-nationalised sectors. The Board will not be concerned with the extensive engineering and other extraneous activities which, though not part of the iron and steel industry, were brought under the control of the Iron and Steel Corporation because they happened to form part of the activities of the companies which were nationalised.
Duties and Powers of the Board
23. The Board will have the general duty of supervising the industry with a view to promoting the efficient, economical and adequate supply of iron and steel, and will be required in particular to keep under review:
(a) development of production capacity;
(b) prices;
(c) raw material supplies ;
(d) research and technical training;
(e) arrangements for joint consultation between management and em- ployees on matters of mutual interest other than wages and condi- tions of service; and
(f) arrangements for the safety, health and welfare of employees.
24. Whilst the powers of the Board are intended to provide for the super- vision of the whole iron and steel industry, they will not extend beyond it, for example to the activities of steel-using industries or metal merchants.
25. So long as the present emergency powers or similar powers under other legislation continue to be exercised, the Government will consult the Board in regard to their application to the iron and steel industry, and in appropriate cases may authorise the Board to exercise them on behalf of the Government.
Development
26. One of the most important responsibilities of the Board will be to supervise capital development. It will be the Board's duty to discuss with the iron and steel companies their plans, in order that they may be satisfied that individual schemes are consistent with the proper development of the industry as a whole and that any additional capacity or improved facilities required will be provided.
27. If a company should put forward a major scheme which in the opinion of the Board would seriously prejudice the efficient and economical develop- ment of the industry, the Board will have power to restrain that company from embarking upon such a scheme. Companies dissatisfied with the Board's decision will have the right of appeal to the Minister of Supply.
28. On grounds of general national interest it may at times be desirable to carry out schemes of capital development which on commercial grounds no company feels able to undertake. It is therefore proposed to give powers to the Minister of Supply to arrange in such cases, after consultation with
the Board the grosion and operation of phe additional forkor other
facilities required.
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29. The Government propose to give these positive powers to the Minister and not top the Board because if the rvising the industry as a whole, they
Board pre in performance of their
presryef impartiality muemain free from responsibilities of ownership or
or management in respect of particular concerns.
Prices
30. In view of the importance of iron and steel to the national economy, it is proposed to give to the Board power to fix maximum prices for sales in the United Kingdom. Discretion will be left to the Board to decide from time to time in respect of which products such price control is necessary. In addition it is proposed that the Government should have in reserve a power to intervene in the fixing of maximum iron and steel prices should the public interest so require.
31. In order to avoid overlapping, the Board's price-fixing powers will not be exercisable in respect of any product for which a Price Control Order under Defence Regulations is at the time operative. On the other hand,
the Minister of Supply will be required to consult the Board before making any such order in respect of any product or raw material of the industry, including scrap.
Enforcement of Board's decisions
32. The Bill will provide that all producers of iron and steel shall be deemed to have entered into a contractual obligation with the Board to observe their decisions in relation to development and prices. The Board's decisions will thus be enforceable by civil proceedings for an injunction..
Supply of Raw Materials
33. The Board will keep under review the distribution of raw materials, including scrap. In times of shortage, such as the present, when emergency powers are in operation, it is the Government's intention that the Board should control the distribution of scarce raw materials within the iron and steel industry under the authority of the Minister of Supply.
34. In view of the dependence of the United Kingdom upon supplies of high grade iron ore and other raw materials from abroad, the Board will have to assure themselves that the arrangements made by the industry for importation of the raw materials it requires and their distribution are satis- factory. The Board will be empowered themselves to take steps to secure the imports required, should they consider the industry's arrangements inadequate.
35. The Board may also if necessary arrange for the import of iron or steel, in finished or semi-finished form.
36. In order to avoid serious price discrepancies due to the higher cost of imported iron and steel and raw materials, the Board may arrange, with the approval of the Minister of Supply, for these to be sold below cost and for the loss to be recovered from appropriate sectors of industry, as is done at present.
Research and Training
37. The Board will be empowered to take steps to promote research and 'the training and education of employees, should they consider that the indus- try's arrangements are inadequate, and to make any necessary grants or loans.