Iron and Steel Act 1949

short title

type

Act

parliament

Parliament of the United Kingdom

long title

An Act to provide for the establishment of an Iron and Steel Corporation of Great Britain and for defining their functions, and for the transfer to that Corporation of the securities of certain companies engaged in the working, getting and smelting of iron ore, the production of steel, and the shaping of steel by rolling, and of certain property and rights held by a Minister of the Crown or Government department; for the licensing of persons engaged in any such activities; for co-ordinating the activities of the Corporation, the National Coal Board and the Area Gas Boards relating to carbonisation; and for purposes connected with the matters aforesaid.

year

1949

citation

12, 13 & 14 Geo. 6. c. 72

royal assent

24 November 1949

commencement

23 October 1950

repeal date

13 July 1953

repealing legislation

Iron and Steel Act 1953

status

Repealed

original text

https://www.legislation.gov.uk/ukpga/Geo6/12-13-14/72/contents/enacted

use new uk-leg

The Iron and Steel Act 1949 (12, 13 & 14 Geo. 6. c. 72) was an act of the Parliament of the United Kingdom which nationalised, or bought into state control, elements of the iron and steel industry in Great Britain. It established an Iron and Steel Corporation which acquired certain iron and steel companies. In a departure from earlier nationalisations the Corporation only acquired the share capital of the companies, not the undertakings themselves. The individual companies continued to operate under management Boards appointed by the corporation. The act was one of a number of acts promulgated by the post-war Labour government to nationalise elements of the UK's industrial infrastructure; other acts include the Coal Industry Nationalisation Act 1946 (9 & 10 Geo. 6. c. 59); Transport Act 1947 (10 & 11 Geo. 6. c. 49), which included railways and long-distance road haulage; the Electricity Act 1947 (10 & 11 Geo. 6. c. 54); and the Gas Act 1948 (11 & 12 Geo. 6. c. 67).

Background

The involvement of the UK government in the iron and steel industry began in the interwar period with the establishment of the British Iron and Steel Federation to represent companies in the industry, and which fixed prices, production quotas, levies, and closed redundant works under Government supervision.[1]

Enactment and provisions

The Iron and Steel Act 1949 (12, 13 & 14 Geo. 6. c. 72) received royal assent on 24 November 1949.

The Iron and Steel Corporation of Great Britain was established under the provisions of the act with effect from October 1950. It brought 94 iron and steel companies into public ownership with effect from vesting day, the 15 February 1951.[1]

The 1949 Act also established an Iron and Steel Consumers' Council. This had the duty ‘of making representations to the Minister on such matters affecting the interests of the consumers as the Council think necessary’.[3]

Operation of the act

The model of nationalisation enacted by the 1949 act was different to earlier ones, such as Coal Industry Nationalisation Act 1946. Only the share capital of the companies was acquired, not the undertakings themselves. The individual companies therefore continued to operate under management Boards appointed by the corporation.[1] The mode of nationalisation was distinct because many iron and steel companies undertook other integrated activities, that could not easily be segregated into their individual functions. For example, the manufacturers of motor vehicles, which undertook steel processing, were excluded. About 2,000 iron and steel companies operated outside the nationalised sector.[4]

Observations on the act

The 1949 act has been seen as both the culmination of the Labour government's nationalisation policy and as a major departure from that policy.[5] It completed the list of major industrial infrastructures to be brought into state control and introduced collective ownership, and a certain amount of competition, into a manufacturing industry. It has also been seen as significant as it 'sheds light on the policy of nationalisation'.[6] It has been described as being doctrinally inspired.[5] And 'a highly exceptional measure... pushed through Parliament with great vigour and determination'.[6] It has been seen as ‘nationalisation for clearly ideological reasons’;[7] since the government 'was so persistent with a measure which can fairly be described as in no way popular'.[6]

Iron and Steel Act 1949

Background

Provisions of the Bill

Enactment and provisions

Operation of the act

Observations on the act

Government policy and later enactments

See also

External links

References