Chapter Notes

Chapter 1 Introduction

D. C. Coleman, 'Naval dockyards under the Later Stuarts', Econ. Hist. Rev., 2nd series, VI (1953-4) pp. 134-155; W. Ashworth, 'Economic Aspects of Late Victorian Naval Administration', ibid. XXII (1969) pp. 491-505; R. Vesey Hamilton, Naval Administration (London, 1896). 2 H. Robinson, Britain's Post Office (London, 1953) esp. chs I-III. 3 Ibid., pp. 198-205,218-20. 4 G. M. Young and W. D. Handcock, English Historical Documents, XII(I) (London, 1956) pp. 194,248,318; P. S. Bagwell, The Transport Revolution from 1770 (London, 1974) pp. 174, 177-8. 5 B. Chubb, The Control oj Public Expenditure (Oxford, 1952) chs II and IV. 6 A. T. Peacock and J. Wiseman, The Growth oj Public Expenditure in the United Kingdom (Princeton, 1961) pp. xxi-xxv and ch. 3. 7 D. J. Payton-Smith, Oil (History of the Second World War, UK Civil Series) (London, 1971) pp. 9-12;J. H. Clapham, An Economic History if Modern Britain, vol. 3 (Cambridge, 1938) p. 276, says this was only the second or third time since Elizabeth I that the Crown had acquired shares in a joint-stock company. 8 S.J. Hurwitz, State Intervention in Great Britain (New York, 1949) Section II. 9 R. H. Tawney, 'The Abolition of Economic Controls, 1918-1921 " Econ. Hist. Rev. XIII (1943) pp. 1-30, esp. 12-19. 10 M. Bowley, Housing and the State 1919-1944 (London, 1945) Part I, esp. chs II, III and VI. 11 D. N. Chester, The Nationalisation if British Industry 1945-51 (London, 1975) p. 3. 12 H. J. Hanham, The Reformed Electoral System in Great Britain, 1832-1914 (London, 1968) pp. 25 and 35; A.J. P. Taylor, English History 1914-1945 (Oxford, 1965) pp. 115-16 and 262. 13 M. Heinemann, Britain's Coal (London, 1944) passim; B. Supple, The History oJthe British Coal Industry, Vol. 4, 1913-1946 (Oxford, 1987) chs 8 and 13. 209 210 Chapter Notes

14 Chester, Nationalisation, pp. 383-7. 15 Bagwell, Transport Revolution, p. 293. Though the London Passenger Transport Board was set up by the 'national' government it had been planned by the preceding Labour government, which fell before its legislation on the subject had completed its passage through parliament. 16 Supple, British Coal Industry, Vol. 4, pp. 301-2 and 351-8. The act was also intended to increase powers to compel the amalgamation of collieries, but this aspect of it was frustrated by the outbreak of war. 17 W. K. Hancock and M. M. Gowing, British War Economy (History of the Second World War, UK Civil Series) (London, 1949) esp. chs I, II and V; M. M. Postan, British War Production (History of the Second World War, UK Civil Series) (London, 1952) ch. III. 18 R. S.Sayers, Financial Poliry 1939-1945 (History of the Second World War, UK Civil Series) (London, 1956) ch. I. 19 Postan, War Production, ch. IX; W. Ashworth, Contracts and Finance (History of the Second World War, UK Civil Series) (London, 1953) esp. chs IX, XI and XII; W. Hornby, Factories and Plant (History of the Second World War, UK Civil Series) (London, 1958) chs III, IV, V and XIV. 20 Hancock and Gowing, War Econorrry, ch. XVI; Supple, British Coal Industry, Vol. 4, chs 11, 12 and 13 (section vi). An extreme presentation of the war as a revelation of current and preceding industrial failings (which by over-emphasis diminishes persuasion) is C. Barnett, The Audit of War (London, 1986). Part II deals with individual industries, including coal in ch. 4. The railways are not discussed. 21 L. C. B. Seaman, Post- Victorian Britain 1902-1951 (London, 1966). Chapter 46 summarises this change of public attitude very well. 22 Chester, Nationalisation, pp. 2-3. The past history of proposals for nationalisation is examined at length in E. E. Barry, Nationalisation in British Politics (London, 1965). 23 R. P. Arnot, The Miners: One Union One Industry (London, 1979) p.105. 24 Chester, Nationalisation, pp. 3-4; R. Kelf-Cohen, Nationalisation in Britain (2nd edn, London 1961) ch. II. 25 Chester, Nationalisation, pp. 1-2 and 4-8. The section (pp. 5-7) of Let Us Face the Future which deals with public ownership is reprinted in J. F. C. Harrison, Society and Politics in England 1780-1960 (New York, 1965) pp. 450-3. Chapter Notes 211

26 R. B, McCallum and A. Readman, The British General Election of 1945 (London, 1947) p. 150 reports an opinion poll during the election period which shows only 6 per cent regarded nationalisation as one of the most important questions for discussion in the campaign, whereas 41 per cent thought housing was such a question. 27 Chester, Nationalisation, pp. 1-2 and 6. 28 Chester, Nationalisation, passim, deals with this in enormous detail, A. A. Rogow, The Labour Government and British Industry 1945-1951 (Oxford, 1955), esp. ch. VIII, is much briefer and more restricted. Seaman, Post- Victorian Britain, ch. 48 summarises the basic facts. 29 These changes are set out in chapter 2 below. 30 Central Statistical Office, United Kingdom National Accounts, 1986 edn (' The CSO Blue Book') p. 115 lists all the public corporations, individually or by category (50 of them). It does not, however, specify the individual corporations comprised in certain major categories, such as Area Electricity Boards, New Town Development Corporations, Urban Development Corporations and Regional Water Authorities. It is these which take the total beyond 70. 31 Chester, Nationalisation, p. 8. 32 Further detail and discussion in chapter 2 below. 33 j. Kay, C. Mayer, and D. Thompson (eds), Privatisation and Regulation - the UK Experience (Oxford, 1986) Introduction and Part I.

Chapter 2 The Sequence of Nationalisation

W. Ashworth, Contracts and Finance (History of the Second World War, UK Civil Series) (London, 1953) pp. 220-1. 2 Ibid., pp. 221-2. It is a contrast with the cost of most nationalisations that the price paid for Short Brothers was only £ 1472182. After the end of English operations the group was changed into a holding company, SB (Realisations) Ltd, which was wholly owned by the government and which in turn owned 69.5 per cent of the share capital of Short Brothers and Harland Ltd (see SC on Nationalised Industries 1967-8, The Committee's Order of Reference, HC 298, para. 90). 3 D. N. Chester, The Nationalisation if British Industry 1945-51 (London, 1975) pp. 142-3. H. A. Clegg and D. N. Chester, 'The 212 Chapter Notes

North of Scotland Hydro-Electric Board', Public Administration, XXXI ( 1953) pp. 213-34 reviews the early history. P. L. Payne, The Hydro (Aberdeen, 1988) gives a full account of both the origins and later activities of the Board. 4 Chester, Nationalisation, pp. 27-39 traces the formation of the timetable of nationalisation. 5 Ibid, pp. 38. 6 Ibid., pp. 91-104, 240-58, 388-91; B. Supple, The History of the British Coal Industry, Vol. 4 (Oxford, 1987) pp. 628-65; W. Ashworth, The History of the British Coal Industry, Vol. 5, 1946-1982 (Oxford, 1986) pp. 20-36, 121-30. For the national- isation of the non-mining activities, see Ashworth, British Coal Industry, Vol. 5, pp. 471-80, 486-8, 508; for the changes in the organisation of opencast mining, see ibid., pp. 449-51. For the number of mines owned by the NCB and the licensing of private mines, see ibid., pp. 6, 24, 158-9; Supple, British Coal Industry, Vol. 4, pp. 636, 673-4 is slightly inaccurate on this subject. 7 Ashworth, British Coal Industry, Vol. 5, p. 28. 8 Chester, Nationalisation, pp. 104-6, 260-1, 405-6, 456. 9 Ibid., pp. 453-6. 10 Ibid., pp. 106-39,261-77,391-405,665-77; P. S. Bagwell, The Transport Revolution Jrom 1770 (London, 1974) pp. 305-10; T. R. Gourvish, British Railways 1948-73 (Cambridge, 1986) pp. 24-8. II Chester, Nationalisation, pp. 140-7, 277-96, 319-29, 406-33, 656-65. 12 Ibid., pp. 147-9,296-308,329-31,433-40,677-8. 13 Ibid., pp. 149-83,308-15,440-53,678-87. 14 R. Kelf-Cohen, British Nationalisation 1945-1973 (London, 1973) pp.94-6. 15 Ibid., pp. 76, 78-81; Bagwell, Transport Revolution, pp. 328-40; Gourvish, Railways, pp. 137-56,307-30. 16 G. L. Reid, K. Allen and D. J. Harris, The Nationalized Fuel Industries (London, 1973) pp. 170-1; Kelf-Cohen, British Nationalisation, pp. 40-1, 44-7. 17 CEGB, Annual Report and Accounts 1985/86, pp. 49-52. 18 L. Hannah, Engineers, Managers and Politicians: The First Fifteen rears oj Nationalised Electricity Supply in Britain (London, 1982) pp. 171-6. 19 Kelf-Cohen, British Nationalisation, p. 108. 20 D. H. Aldcroft, British Transport since 1914 (Newton Abbot, 1975) pp. 269-82. 21 Reid, Allen and Harris, Fuel Industries, pp. 103-9, 117 - 25, 161; Kelf-Cohen, British Nationalisation, pp. 61-5. Chapter Notes 213

22 Ashworth, British Coal Industry, Vol. 5, pp. 496-9; P. johnson ( ed. ), The Structure of British Industry (London, 2nd edn, 1988) ch.2. 23 Kelf-Cohen, British Nationalisation, pp. 10 1-7. 24 Bagwell, Transport Revolution, pp. 350-8; Gourvish, Railways, pp.365-81. 25 Ashworth, British Coal Industry, Vol. 5, pp. 328, 482-4. 26 P. johnson (ed.), The Structure of British Industry, pp. 38-9, 43. 27 Ibid., p. 183. 28 The functions of this company (including some services to the Ministry of Defence not mentioned in previous reports) are described in British Nuclear Fuels pic, Annual Report and Accounts 1986-87, pp. 7-9. 29 CEGB, Annual Report and Accounts 1985/86, pp. 7 and 41. 30 Bank of Scotland, United Kingdom Taxation: Offshore Oil and Gas (Edinburgh, 1976') pp. 2, 4-9, 19. 31 The nationalisations of the mid-1970s have not been absorbed into much of the published secondary work, other than highly specialised studies of particular aspects. They are most easily followed in the contemporary press and the annual reports of the corporations concerned. In some cases the relevant information is usefuIIy summarised in the prospectuses of privatisation share lssues. 32 Kelf-Cohen, British Nationalisation, pp. 108-9;j. Kay, C. Mayer and D. Thompson (eds), Privatisation and Regulation - the UK Experience (Oxford, 1986) pp. 224-5,232-7. 33 The course of privatisation is summarised in ibid., pp. 2-5.

Chapter 3 Objectives

1 See Chapter 1 above. 2 R. H. Tawney, posthumously reprinted in The Radical Tradition (London, 1964) p. 160; cited in R. Pryke, Public Enterprise in Practice: The British Experience of N ationalisation over Two Decades (London, 1971) pp. 4-5. 3 E. Davies, 'Who Decides the Public Interest?' in M. Shanks ( ed. ), The Lessons of Public Enterprise; A Fabian Society Study (London, 1963) p. 227. 4 Coal Industry Nationalisation Act 1946, ss. 1, 3, 26, 29, 30 and 63. 5 N. Murrell Marris, Joseph Chamberlain: the Man and the Statesman (London, 1900) p. 112. 214 Chapter Notes

6 W. Ashworth, The History of the British Coal Industry, Vol. 5 (Oxford, 1986) p. 579 discusses the absence of the word' profits', which crept in only in reference to the profits of colliery concerns before nationalisation. 7 Transport Act 1947, s. 3 (1). 8 D. N. Chester, The Nationalisation of British Industry 1945-51 (London, 1975) pp. 561-2. 9 Electricity Act 1947, s. 25; Gas Act 1948, s. 1; Iron and Steel Act 1949, s. 3. The similarities and differences in the various acts are discussed in Shanks, Lessons, pp. 231-3. 10 Civil Aviation Act 1946, s. 2. 11 Transport Act 1953, s. 25. 12 Transport Act 1962, ss. 3 and 7. 13 Report of Committee of Inquiry into the Electricity Supply Industry (Herbert Report) Cmd 9672 (London, 1956) p. 97. 14 Electricity Act 1957, s. 13. 15 1st Report of SC on Nationalised Industries, Session 1967-8, HC 371-11, pp. 149-50 for the NCB's complaint about such 'arm-twisting' practices in the 1960s, the incidence of which, of course, varied with circumstances. In the late 1940s and most of the 1950s they were not much in evidence for coal because ministers were too scared about not getting enough coal produced. 16 Shanks, Lessons, pp. 9-10, 18-19, 26-8; T. R. Gourvish, British Railways 1948-73 (Cambridge, 1986) pp. 72-85 and 284-304 examines the role of government actions in variations of railway investment and does not find the government to be the only villain, though its actions were often ill-judged. 17 Gourvish, Railways, pp. 174-6. 18 The Financial and Economic Obligations of the Nationalised Industries, Cmnd 1337 (London, 1961) pp. 3-4. 19 Ibid., pp. 7-10. 20 R. Kelf-Cohen, British Nationalisation 1945-1973 (London, 1973) pp. 143-52 discusses the White Paper and the application of its policies. 21 Ashworth, British Coal Industry, Vol. 5, p. 277. Kelf-Cohen, British Nationalisation, p. 150 stated that the NCB was seeking a financial reconstruction and being refused, at the time its financial objective was being agreed, but he was wrong. 22 Kelf-Cohen, British Nationalisation, pp. 151-2. 23 There had been previous references of price proposals to the National Board for Prices and Incomes. For example, in December 1965 NCB proposals were so referred and the NBPI reported on them (Cmnd 2919), in February 1966, with a Chapter Notes 215

recommendation that they be approved. The innovation was the reference of all proposed increases. 24 The Treasury was active in explanation and advocacy of DCF methods at this time, particularly in memoranda and evidence to the SC on Nationalised Industries. See HC 440 of 1966-7, pp. 291-8 and HC 371-11 of 1967-8, pp. 14-22. 25 Nationalised Industries: A Review !if Economic and Financial Objectives, Cmnd 3437 (London, 1967) pp. 5-9. 26 R. Pryke, The Nationalised Industries: Policies and Performance since 1968 (Oxford, 1981) p. 258. 27 L. J. Tivey (ed.), The Nationalised Industries Since 1960: A Book of Readings (London, 1973) p. 14. 28 L. J. Tivey, Nationalization in British Industry (London, 2nd edn, 1973) p. 177. 29 Ashworth, British Coal Industry, Vol. 5, pp. 284-5 and 403-6. 30 Pryke, Nationalised Industries, pp. 259-61. 31 Ibid., p. 262. 32 Ashworth, British Coal Industry, Vol. 5, pp. 415-18. 33 Annual Reports: British Waterways Board 1986-7, p. 2; Electriciry Council 1986-7, p. 8; London Electriciry Board 1986-7, p. 5; British Gas Corporation 1985-6, p. 4; The Post Office 1986-7, p. 51 ; British Shipbuilders 1986-7, p. 25.

Chapter 4 Means

1 See Chapter 1, pp. 5-6 above. 2 G. N. Ostergaard, 'Labour and the Development of the Public Corporation', The Manchester School, XXII ( 1954) pp. 192-226. 3 H. Morrison, Socialisation and Transport (London, 1933) gives his own account. 4 W. Friedman (ed.), The Public Corporation (Toronto, 1954) examines in detail the problem of defining the public corporation. R. Kelf-Cohen, Nationalisation in Britain (London, 2nd edn, 1961 ) pp. 308-9 queries some points in the definition offered. Neither writer appears to envisage either public dividend capital or outright grants as possible financial features of a public corporation. 5 D. N. Chester, The Nationalisation !if British Industry 1945-51 (London, 1975) pp. 387-456 goes into the minutiae of the process by which the number and specific form of the new public corporations of 1945-51 were settled. 216 Chapter Notes

6 Ibid., p. 391 attributes the choice of divisional structure to the NCB, which is formally correct in a statutory sense. But it is misleading, as the members of the NCB were told before they were formally appointed that there would be a regional structure and what the regions would be (W. Ashworth, The History if the British Coal Industry, Vol. 5 (Oxford, 1986) p. 139). 7 Ashworth, British Coal Industry, Vol. 5, pp. 269-71. 8 Electricity Act 1947, s. 6. 9 Chester, Nationalisation, pp. 406-33 describes in detail how the structure and the relations within it came to be settled. lOR. Kelf-Cohen, British Nationalisation 1945-1973 (London, 1973) pp. 273-4 conveniently summarises the changes in the structure of the boards. 11 Ibid., p. 275; Chester, Nationalisation, pp. 433-40. 12 See Chapter 2, pp. 23, 27-8 above. 13 Kelf-Cohen, British Nationalisation, pp. 275-7; Chester, National- isation, 1975, pp. 391-405; T. R. Gourvish, British Railways 1948-73 (Cambridge, 1986) pp. 24-5, 137-41,330,365. 14 This is illustrated in detail for the railways in Gourvish, Railways, pp. 31-67, 137-72,307-88; in less detail for coal in Ashworth, British Coal Industry, Vol. 5, pp. 138-42, 181-97, 266-74, 341-54, 612-29. 15 Ashworth, British CoalIndustry, Vol. 5, pp. 32-3, 171-2, 194-5. 16 Gourvish, Railways, p. 31. 17 Ashworth, British Coal Industry, Vol. 5, pp. 121-4. 18 Gourvish, Railways, p. 32. 19 Chester, Nationalisation, pp. 506-29 for the detailed discussions and decisions on board salaries. 20 Kelf-Cohen, British Nationalisation, p. 186; Gourvish, Railways, pp. 322-4, 360-1, 382, 573-4. 21 Chester, Nationalisation, pp. 511-15, 527. 22 NCB, Report oj the Advisory Committee on Organisation (1955) pp.23-5. 23 Ashworth, British Coal Industry, Vol. 5, pp. 171-4. Kelf-Cohen, Nationalisation in Britain, pp. 118-19, 264-5 compares the recruitment and training policies of the coal and electricity industries very much in favour of the former, but points out that policy changed for the better after criticism by the Herbert Committee and after the Central Electricity Authority was abolished and the Electricity Council created. 24 First Report if SC on Nationalised Industries, Vol. I (HC 371-1 of 1967-8) p. 70. 25 The NCB was probably not untypical in having agreements with the unions representing non-industrial staff that vacancies Chapter Notes 217

above the levels for school and college leavers would be filled internally as far as possible (Ashworth, British Coal Industry, Vol. 5, p. 625). 26 Chester, Nationalisation, pp. 217 -331 goes into great detail about the terms of compensation. See Kelf-Cohen, Nationalisation in Britain, pp. 213-14 for a summary of terms and comments. 27 Details for coal in B. Supple, The History of the British Coal Industry, Vol. 4 (Oxford, 1987) pp. 649-66 and Ashworth, British Coal Industry, Vol. 5, pp. 25-31. 28 See Ashworth, British Coal Industry, Vol. 5, pp. 276 and 279 for the significance of very long periods of repayment. 29 Kelf-Cohen, Nationalisation in Britain, pp. 212-14, 225-7. 30 NCB, Annual Reports, 1947, p. 158; 1963-4 II, pp. 20-1; 1971-2 II, p. 25; 1981-2, p. 60; 1982-3, p. 48. For the details and effects of the two financial reconstructions see Ashworth, British Coal Industry, Vol. 5, pp. 278-9 and 283-4. 31 Kelf-Cohen, British Nationalisation, p. 268. 32 See Gourvish, Railways, pp. 68-90 for details. The problem was partly that the government interfered restrictively in particular projects on the railways, whereas its normal practice elsewhere was to consider only general programmes. 33 Lord Citrine, Two Careers (London, 1967) pp. 297-9. 34 See L. Hannah, Engineers, Managers and Politicians: The First Fifteen Years of Nationalised Electricity Supply in Britain (London, 1982) pp. 171-81 and 229-44 for an account of the nuclear power station programme. 35 Ashworth, British Coal Industry, Vol. 5, pp. 254-5 and 360-1. 36 Gourvish, Railways, pp. 595-611 makes persuasive and useful recalculations of capital formation on the railways. 37 Kelf-Cohen, British Nationalisation, pp. 139-54 discusses some of the problems. Lord Robens in evidence to the SC on Nationalised Industries emphasised the inability of government departments to criticise NCB proposals effectively (HC 371-11 (1967-8) p. 144). The Treasury view of how and why departments should appraise the investment programmes of nationalised industries is in ibid., pp. 14-22. 38 See Chester, Nationalisation, pp. 878-917 for details of what the formal powers of ministers were, and why they wanted them in the forms that were adopted; ibid., pp. 980-99 for ministerial views of the effectiveness of the powers. 39 HC 371-11 of 1967-8, pp. 149-50. 40 Ashworth, British Coal Industry, Vol. 5, pp. 634-5. 41 M. Shanks (ed.), The Lessons of Public Enterprise: A Fabian Society Study (London, 1963) pp. 94-5; Chester, Nationalisation, p. 1036. 218 Chapter Notes

42 Cmnd. 1337, pp. 9-10. 43 Hannah, Engineers, Managers and Politicians, pp. 171-81,229-37, 284-5. 44 Shanks, Lessons of Public Enterprise, pp. 95-7; C. Harlow, Innovation and Productivity under Nationalisation: The First Thirty Years (London, 1977) pp. 86-7, 41, 44-5. 45 Lord Robens, Ten Year Stint (London, 1972) pp. 148 and 149. 46 HC 371-1 (1967-8) p. 190. 47 See Robens, Stint, pp. 148-77, under the heading 'Mixing it with Ministers'. 48 Ashworth, British Coal Industry, Vol. 5, p. 351. 49 C. Harlow, Innovation and Productivity under Nationalisation: The First Thirty Years (London, 1977) pp. 45-50. 50 For the persistence of the uneasy balance between government and public corporation as experienced in one industry, coal, see Ashworth, British Coal Industry, Vol. 5, pp. 630-47. 51 Ibid., pp. 635-7; Shanks, Lessons of Public Enterprise, pp. 99-109. 52 See Chapter 3 above.

Chapter 5 PerforlDance

See Chapter 2 above, passim, for the statutory posItIOn of particular nationalised industries. Some of the information in Chapters 3 and 4, about the way in which the statutory objectives were defined in practice and operating resources supplied, is also an essential part of the context in which particular industries operated. 2 W. Ashworth, The History of the British Coal Industry, Vol. 5 (Oxford, 1986) p. 3. 3 Ibid., pp. 130-8. 4 Ibid., pp. 197-205. 5 Report oj the Committee on National Policy Jor the Use oj Fuel and Power Resources (Ridley Report) Cmd 8647 (London, 1952). 6 Ashworth, British Coal Industry, Vol. 5, p. 208. 7 Ibid., p. 586; Ridley Report, pp. 14-19. 8 Ashworth, British Coal Industry, Vol. 5, pp. 278-9. 9 Ibid., pp. 249-66, 668. 10 Ibid., pp. 303-16, 331-41. II Ibid., pp. 283-5. 12 Ibid., pp. 355-66, 377-93. 13 Ibid., pp. 403-8. Chapter Notes 219

14 M. Adeney and]. Lloyd, The Miners' Strike 1984-5: Loss Without Limit (London, 1986) is probably the best introductory aid to understanding. 15 Tables 5.1-4 are all constructed from figures in NCB, Annual Report and Accounts for various years, with the incorporation of various minor corrections made in Ashworth, British Coal Industry, Vol. 5, Appendix Tables. 16 Much fuller information and comment on the performance of the coal industry is given in Ashworth, British Coal Industry, Vol. 5. See especially chapter 11, section 1 and chapter 12 and the earlier passages to which those chapters make footnote cross-references. 17 Figures in both tables from Ministry oj Power Statistical Digest 1967 and Digest if Energy Statistics for 1971, 1980, 1983 and 1987. It should be noted that annual issues of the Digest sometimes contain retrospective revisions for earlier years. The figure for electricity sent out in 1950 is from Annual Abstract oj Statistics 1938-1950, table 164. 18 R. Pryke, The Nationalised Industries: Policies and Performance since 1968 (Oxford, 1981) p. 32. 19 L. Hannah, Engineers, Managers and Politicians: The First Fifteen rears oj Nationalised Electricity Supply in Britain (London, 1982) pp. 168-181, 229-44 and 284-7, and Pryke, Nationalised Industries, pp. 25-9 discuss the choice offuels and types of power station. 20 Calculated from Digest oj Energy Statistics, 1987, table 53. 21 Digest if Energy Statistics, 1971, table 73; 1975, table 71; 1987, table 57. 22 Pryke, Nationalised Industries, p. 240. 23 R. Pryke, Public Enterprise in Practice: The British Experience oj Nationalisation over Two Decades (London, 1971) p. 20. 24 Pryke, Nationalised Industries, pp. 31 and 238. 25 Ibid., p. 247 and Pryke, Public Enterprise, p. 434. Pryke's 1981 book, p. 23 modified his earlier favourable view of the international comparisons for the 1960s by suggesting that better labour productivity in Britain depended too much on an excess of investment which was not fully used. 26 Compare chapter 3 above. 27 W. G. Shepherd, Economic Performance under Public Ownership: British Fuel and Power (New Haven, 1965) p. 71. After payment of interest the rate was 1.2 per cent, which was fractionally better than that for gas. 28 Pryke, Public Enterprise, p. 191; Pryke, Nationalised Industries, pp. 31 and 251. 220 Chapter Notes

29 Pryke, Public Enterprise, p. 175. 30 Pryke, Nationalised Industries, p. 251. 31 Dept. of Employment, Retail Prices Indices 1914-1983, pp. 2, 4 and 32. 32 Ashworth, British Coal Industry, Vol. 5, pp. 432-3. 33 Electricity Council, Annual Report and Accounts 1986/87, pp. 7 and 10. 34 G. L. Reid, K. Allen and D. J. Harris, The Nationalised Fuel Industries (London, 1973) pp. 94-5, and Pryke, Public Enterprise, pp. 363-4 show that in 1949 73 per cent of the works, producing 15 per cent of the output, made no more than 1.25 million therms a year, whereas production costs were not minimised until plants turned out at least 10 million therms annually. 35 Ashworth, British Coal Industry, Vol. 5, pp. 178 and 180. 36 Reid, Allen and Harris, Fuel Industries, pp. 95-8. 37 Pryke, Public Enterprise, pp. 363-73 has an excellent discussion of the economies of scale in the gas industry in different phases of its history. 38 Reid, Allen and Harris, Fuel Industries, pp. 110-11. 39 Ibid., pp. 106-12. 40 Pryke, Nationalised Industries, pp. 9-21 examines pricing policy and makes out a good case for maintaining that natural gas was underpriced throughout the 19705. 41 Figures from various issues of Digest ojEnergy Statistics and Annual Reports of Gas Council and British Gas Corporation. There are some slight problems ofstrict comparability over the long period because there. were other producers of gas, for example, steelworks, coke ovens, collieries and oil refineries, which consumed varying proportions of their own output and were self-sufficient in gas to varying degrees at different times. Even as late as the mid-1980s more than 5 per cent of the total UK gas supply came from coke ovens and blast furnaces, though by this time the share of the British Gas Corporation in total supply and sales was much higher than that of the Area Boards around 1960 (when coke ovens and blast furnaces made about half the total national supply) and this somewhat exaggerated the long term growth trend. 42 Pryke, Nationalised Industries, p. 251 and calculations based on Pryke, Public Enterprise, p. 175. 43 Calculated from Dept. of Employment, Retail Prices Indices 1914-1983. 44 British Gas Corporation, Annual Report 1985-6, pp. 4 and 46-8. 45 See Chapter 2 above. Chapter Notes 221

46 T. R. Gourvish, British Railways 1948-73 (Cambridge, 1986) p.93. 47 Ibid., p. 96. 48 Pryke, Public Enterprise, p. 182. 49 Gourvish, Railways, pp. 585 and 589-92. 50 Pryke, Nationalised Industries, pp. 76 and 251. 51 Gourvish, Railways, pp. 595, 602 and 603. 52 Ibid., p. 105. 53 Ibid., pp. 474-86. 54 Pryke, Public Enterprise, p. 175. 55 Pryke, Nationalised Industries, p. 251; Dept. of Employment, Retail Prices Indices 1914-1983, pp. 1 and 32. 56 Gourvish, Railways, pp. 456-60. 57 Pryke, Nationalised Industries, p. 238. 58 Gourvish, Railways, p. 612. 59 Ibid., p. 617. 60 Pryke, Public Enterprise, pp. 17, 20, 175, 182 and 191. 61 Pryke, Nationalised Industries, pp. 238, 240 and 251. 62 Ibid., pp. 96-115 gives a detailed analysis of the poor performance of nationalised buses between 1968 and 1978. 63 Pryke, Public Enterprise, pp. 181-3. 64 Ibid., pp. 20, 22, 27-30, 36-9, 175, 182. 65 Pryke, Nationalised Industries, pp. 116-28, 238, 251. 66 R. Kelf-Cohen, British Nationalisation 1945-1973 (London, 1973) pp.89-91. 67 Duncan Burn, The Steel Industry 1939-1959 (Cambridge, 1961) pp.291-2. 68 G. W. Ross, TheNationalizationrifSteel (London, 1965) p. 150. 69 Burn, Steel, pp. 236-7 and 240. 70 Kathleen Burk, The First Privatisation (London, 1988) pp. 140-3. 71 K. Ovenden, The Politics of Steel (London, 1978) p. 19. 72 Ibid., p. 22. 73 J. Vaizey, The History ofBritish Steel (London, 1974) pp. 169-75. 74 Ibid., pp. 178-9. 75 Pry ke, Nationalised Industries, p. 193. 76 Ibid., pp. 183-93 for a highly critical discussion of BSC's replanning exercises. 77 Kelf-Cohen, British Nationalisation, pp. 104-5; Ovenden, Politics of Steel, p. 170. 78 Pryke, Nationalised Industries, pp. 193-200. 79 Ibid., p. 192. 80 Ibid., p. 201. 222 Chapter Notes

81 British Steel Corporation, Annual Statistics jor the Corporation, 1978J79 and 1981/82. 82 Pryke, Nationalised Industries, pp. 204-5. 83 Figures from British Steel Corporation, Annual Report, various years. 84 See Chapter 2, p. 30 above. 85 Annual Abstract of Statistics, 1979 and 1988. 86 Telecommunications Statistics 1974, p. 54. 87 Post Office, Annual Report and Accounts, 1973-4 and 1982-3; British Telecom, Report and Accounts, 1981-2 and 1983-4. 88 Post Office, Annual Reports for various years cited. It should be remembered that profits were also affected by the counter services, though mail was the principal activity. 89 Ibid., 1986-7, pp. 16 and 18-19. 90 Ibid., 1982-3, pp. 58-9. 91 Pryke, Nationalised Industries, pp. 149 and 158. This author's severity is perhaps a little excessive from under-rating the need for some retained services. Note, in particular, his denunciation of the retention of a second daily postal delivery. 92 Post Office, Annual Report 1986-7, pp. 16-17, 51 and 52. Because of changes in classification the absolute figures of numbers employed differed from those cited earlier. 93 C. Harlow, Innovation and Productivity under Nationalisation: The First Thirty Years (London, 1977) pp. 106-9. 94 Ibid., pp. 110-37 goes into detail on this subject. 95 Post Office, Annual Report 1973-4, pp. 12-13. 96 Pryke, Nationalised Industries, p. 172. 97 Ibid., pp. 178-9. 98 Calculated from Post Office, Annual Report 1973-4 and British Telecom, Report and Accounts 1981-2. In 1973-4 prices were artificially low because of the government's statutory price policy. 99 British Telecom, Report and Accounts, 1981-2, pp. 42-3; 1983-4, pp. 74-5. 100 Pryke, Public Enterprise, p. 182. 101 See Chapter 4 above for BEA's requirement to buy British; full detail in Harlow, Innovation, pp. 13-50. Pryke, Public Enterprise, pp. 256-83 analyses the sources of BOAC's losses and devotes pp. 268-83 to an examination of the costs of using British aircraft. 102 Quoted in Pryke, Public Enterprise, p. 275. 103 Ibid., pp. 155-60 and 198. 104 Pryke, Nationalised Industries, pp. 134-5, 137, 242, 247-8, 251. The net margin on assets, which is what should be compared Chapter Notes 223

with the figures previously cited for the 1960s, was only 1.6 per cent in 1977-8. 105 Lord King, 'Turning Silver to Gold', an article in The Times, 19June 1987, which abridged a lecture given the previous day to the Institute of Directors. 106 The later details are discussed in National Audit Office, Report on Department of Trade and Industry: Sale of Government Shareholding in Rolls-Royce pic, HC 243, 1987-8. 107 Pryke, Nationalised Industries, pp. 210-13. 108 Ibid., pp. 220-36. 109 British Shipbuilders, Annual Report and Accounts, 1986-7, pp. 33 and 44-5. 110 Ibid., pp. 48-9. III Dept. of Employment, Retail Prices Indices 1914-1983, pp. 2, 4 and 32. 112 Pryke, Nationalised Industries, p. 251. 113 Pryke, Public Enterprise, p. 175 and Pryke, Nationalised Industries, p. 251. For the period to 1968 the Post Office is not included in the public enterprise figure and would probably have slightly worsened it. 114 Ashworth, British Coal Industry, Vol. 5, pp. 215, 230, 428-30. 115 Ibid., pp. 432-3. 116 Ibid., p. 583. 117 Calculated from Central Statistical Office, Economic Trends Annual Supplement, 1987 edn, p. 201. 118 Calculated from ibid., p. 48. 119 Calculated from CSO, United Kingdom National Accounts, 1986 edn, table 1.3. 120 Calculated from ibid., tables 1.3 and 11.7. It should be noted that this ratio is slightly different from a calculation of the return on assets, such as was given earlier for telecommunications where the information to which Note 99 relates emphasises the large difference which can be made by differences of accounting convention. 121 Ashworth, British Coal Industry, Vol. 5, p. 34. 122 CSO, Economic Trends Annual Supplement, 1987 edn, p. 156. The figures are net of surpluses and of borrowings repaid, but this is a trivial proviso because 1985 was the only year with a surplus and was also the only year with a negative borrowing requirement. 123 CSO, United Kingdom National Accounts, 1986 edn, tables 6.1 and 7.2. 124 Compare table 5.13 above. 125 Calculated from UK National Accounts, 1986, table 7.2. There are, of course, further complications from the tying of some 224 Chapter Notes

subsidies to specific purposes which were sometimes concerned more with social than business purposes. For an attempt to sort out these differences in one industry, coal, see Ashworth, British Coal Industry, Vol. 5, pp. 403-6. 126 UK National Accounts, 1986, tables 6.2 and 6.3. The taxes mentioned here do not include the much larger sums for income tax and national insurance contributions in respect of employees. These are accounted for before the gross trading surplus is calculated. 127 Calculated from ibid., tables 1.3, 6.2 and 6.3. 128 Calculated from ibid., table 1.3 and Economic Trends Annual Supplement, 1987, p. 48.

Chapter 6 Critique

R. Kelf-Cohen, British Nationalisation 1945-1973 (London, 1973) p. 215. Ibid., pp. 211-28 for consumer councils as a whole. M. Shanks (ed.), The Lessons of Public Enterprise: a Fabian Society Study (London, 1963) pp. 212 -13 notes the failure of the consumer councils and suggests reasons and possible remedies. 2 Kelf-Cohen, British Nationalisation, p. 226. 3 T. R. Gourvish, British Railways 1948-73 (Cambridge, 1986) pp. 100, 103,205-12,436-43,452-7. 4 Kelf-Cohen, British Nationalisation, p. 164. 5 Ibid., pp. 180-1. 6 R. Pryke, Public Enterprise in Practice: The British Experience of Nationalisation over Two Decades (London, 1971) p. 20. 7 Kelf-Cohen, British Nationalisation, p. 180. 8 Gourvish, Railways, p. 461. 9 W. Ashworth, The History of the British Coal Industry, Vol. 5 (Oxford, 1986) pp. 678-9. 10 British Coal Corporation, Annual Report 1988-9, p. 29. 11 A. J. H. Dean, 'Earnings in the public and private sectors 1950-1975', National Institute Economic Review, No. 74 (Nov. 1975) pp. 62-6; and' Public and private sector manual workers' pay 1970-1977', National Institute Economic Review, No. 82 (Nov. 1977) pp. 62-6. 12 Ashworth, British Coal Industry, Vol. 5, pp. 304-5 and 338-9. Surface workers in coalmining did much more than recover the relative losses of the 1960s but faceworkers did much less. 13 C. Trinder, 'Pay of employees in the public and private sector', National Institute Economic Review, No. 97 (August 1981 ) pp. 48-9, Chapter Notes 225

53-4; N. A. Foster, S. G. B. Henry and C. Trinder, 'Public and private sector pay: a partly disaggregated study', ibid., No. 107 (Feb. 1984) pp. 63-6. 14 Gourvish, Railways, p. 223. 15 Ashworth, British Coal Industry, Vol. 5, pp. 657-8 discusses the general change; ibid., pp. 607 - 12 looks more particularly at the miners' strikes of 1972 and 1974 and their consequences. 16 Ibid., pp. 297-300, 595-7. 17 Monopolies and Mergers Commission, National Coal Board ( 1983) I, pp. 260-2. For comparisons before and after nationalisation, W. H. Sales, 'Human Relations and Welfare' in Colliery Guardian (ed.) , National Coal Board: The First Ten Years (London, 1957), p. 102. 18 Gourvish, Railways, p. 569. 19 See Ashworth, British Coal Industry, Vol. 5, pp. 50-60, 642-3 and 659-62 for discussion of the nature of energy policy. 20 Ibid., pp. 324 and 361. 21 Compare Tables 5.11 and 5.12 above. 22 Dean,' Earnings', in National Institute Economic Review, 1975, p. 66. 23 R. Pryke, The Nationalised Industries: Policies and Performance Since 1969 (Oxford, 1981) pp. 259-61. 24 H. Morrison, Socialisation and Transport (London, 1933) p. 169. 25 Ibid., p. 17 I. 26 Ibid., pp. 171-3. 27 The consumers' councils were not of this kind. They had to be informed and consulted but did not have powers of decision. 28 D. N. Chester, The Nationalisation if British Industry 1945-51 (London, 1975) pp. 984-5. 29 Gourvish, Railways, p. 141. Compare Ashworth, British Coal Industry, Vol. 5, pp. 632 and 633. 30 See Chapter 4 above, pp. 83-9. 31 It would be possible to argue that the nationa1isation statutes of the late 1940s, by their references to ministerial powers to act in the national interest and their requirements for boards to go to ministers for capital and discuss investment programmes with them, tipped the balance rather more towards ministers than Morrison had indicated in 1933, but it is doubtful whether he would have accepted this argument. 32 Ashworth, British Coal Industry, Vol. 5, pp. 630-47 discusses the way in which relations between government departments and nationalised boards were carried on, with particular but not exclusive reference to the NCB. 33 Ibid., pp. 579-82 discusses the comments made on these lines by the Fleck Committee (1955) about the NCB. 226 Chapter Notes

Chapter 7 Conclusions

I See chapter 6, pp. 173-81 above. 2 See chapter 5, p. 159 and chapter 6, pp. 179-80 above. 3 See chapter. 5, p. 163 above. 4 The examination of particular industries in Chapter 5 passim provides illustration and support for this suggestion without bringing to light any indication of any persistent general inferiority in the running of nationalised businesses. 5 Chapter 3 above reviews the changing ways in which the nationalised industries were required to interpret their statutory financial duties. 6 See chapter 6, p. 185 above, and H. Morrison, Socialisation and Transport (London, 1933) pp. 171 and 173. For examples of government intervention see also Chapter 4 pp. 85-7 above. 7 Morrison, Socialisation and Transport, p. 171. See chapter 6, p. 182 above. 8 See W. Ashworth, The History of the British Coal Industry, Vol. 5 (Oxford, 1986) pp. 547-58 for the improvement of safety in mines; pp. 529-30 and 558-61 for medical facilities at collieries; pp. 561-72 for the reduction in the incidence of the occupational diseases of coalmining. 9 The most notorious industry, coalmining, illustrates the difficulty ofassessment. When the last years of private ownership ( 1935-39) are compared with the early years of nationalis ation (1947-55) the annual average number of recorded disputes rose from 357 to 1200 but the annual average number of days lost by disputes fell from I 032 000 to 618000. See the discussion in W. H. Sales, 'Human Relations and Welfare' in Colliery Guardian (ed.), NationalCoalBoard: The First Ten rears (London, 1957) pp. 102-3. The NCB may have been more comprehensive in reporting disputes. If so, the true comparison would have been more favourable to nationalisation. 10 See chapter 6, pp. 169-71 above. II See chapter 6, pp. 171-2 above. See also Ashworth, British Coal Industry, Vol. 5, pp. 306-15, 335-9, 608 and 644-5. 12 Ibid., pp. 114-15. The italics in the quotation are mine. 13 Ibid., pp. 82-6. 14 C. Harlow, Innovation and Productivity under .Nationalisation: The First Thirty rears (London, 1977) p. 234. Harlow investigated the nationalised coal, gas, electricity, airline and telecommuni- cations industries. 15 Ibid., p. 247. 16 Ibid., pp. 249-50. Chapter Notes 227

17 The need for information on which to base technical choices was only one aspect of a general contractual problem which continuously engaged the nationalised industries in conditions of imperfect competition. They were most familiar with it in relation to prices as they needed information which was not automatically available if they were to fix prices that were neither extortionate towards themselves nor oppressive to their suppliers. Different public corporations and government departments dealt with the problem in different ways, probably all imperfect. See Ashworth, British Coal Industry, Vol. 5, pp. 344-6. 18 Ministry of Fuel and Power, Coal Mining: Report of the Technical Advisory Committee (Reid Report), Cmd 6610 (London, 1945). See Ashworth, British Coal Industry, Vol. 5, pp. 3-20 for a general review of the state of the coal industry in 1945. 19 Details of the proposals from the coalowners' standpoint are in W. A. Lee, Thirty rears in Coal (London, 1954) pp. 169-203. Discussion in B. Supple, The History of the British Coal Industry, Vol. 4 (Oxford, 1987) pp. 619-23. 20 See chapter 5, pp. 148-51 above. 21 Ashworth, British Coal Industry, Vol. 5, pp. 130-8, 155-62,205-8 and 665-6. 22 Ibid., pp. 447-72. 23 Some of these are discussed, for individual industries, In the relevant sections of Chapter 5 above. 24 Chapter 5, pp. 158-63 above. 25 A. Nove, Efficiency Criteria for Nationalised Industries (London, 1973) p. 128. 26 Ibid., pp. 7-8. 27 J. E. Stiglitz et ai., The Economic Role of the State (Oxford, 1989) p.32. 28 This was the view of the Fleck Committee which reported on the NCB in 1955. See the discussion in Ashworth, British Coal Industry, Vol. 5, pp. 579-82. 29 Compare the proposition of Nove, Efficiency Criteria, p. 91 that the public interest must be part of the operational principles, and his discussion (pp. 93-9) whether the better solution is payment for specific services or fixed but non-specific' subsidy'. 30 Ashworth, British Coal Industry, Vol. 5, pp. 636-41. 31 One recalls the words given by an admirer of politicians to a fictional cabinet minister at the beginning of the century: 'The ordinary political career is simply a form of trifling. There's no trade on earth where a man has to fear so few able competitors. Of course it's very public and honourable'. Things doubtless improved thereafter but probably no faster than the number of 228 Chapter Notes

governmental posts and public questions that needed high talent. The quotation comes from John Buchan's novella, Fountainblue ( 1901 ), reprinted in The Best Short Stories rif John Buchan, Vol. 2 (London, 1982) p. 240. 32 Morrison had also thought the creation ofa House of Commons Select Committee on Nationalised Industries was very unsuitable and originally opposed it, but it came into existence from 1953 (Ashworth, British Coal Industry, Vol. 5, p. 636). 33 It should be borne in mind that some of the public corporations used company organisation for some of their subsidiaries and associated undertakings, and that some, but by no means all, of these companies operated more smoothly than their parents (ibid., pp. 381-6 for some examples). 34 Some of the 'privatisations' of the 1980s resembled this pattern. There were second-stage sales of holdings in Associated British Ports, British Aerospace, and Cable & Wireless which the government had retained at the time of the original offer of shares to the public. The government remained a large shareholder in British Telecom after its' privatisation' in 1984. 35 W. Ashworth, Contracts and Finance (London, 1953) pp. 149-57, 217-19; pp. 287-96 give in full an example of the kind of agreement that had to be observed. W. Hornby, Factories and Plant (London, 1958) pp. 154-66 and 218-22 gives additional information. Agency management was at last tried out again in the 1980s, in the Royal Dockyards. 36 P. Hennessy, 'Why the message must transcend the medium' in The Independent, 10 Oct. 1988, reporting an address by Peter Kemp to a seminar of the Royal Institute of Public Administration. See also Hennessy's further articles in The Independent, 14 Nov. 1988 and 13 Feb. 1989. It will be recalled that HMSO had previously been reorganised as a public corporation. 37 Compare Nove, Efficient;) Criteria, p. 143: 'In a world of huge units, most of us persist in talking of competitive markets, although, as everyone knows, oligopoly is prevalent'. 38 Ibid., p. 17: 'one of the principal arguments for public operation and control of any sector of the economy is that it permits the internalisation rifexternalities'. Compare ibid., p. 137: '''Make a reality of cost-benefit analysis" may not be a good election slogan, but it would make sense as a principle'. List of Works Cited

Official Publications

(i) Annual Reports and Accounts of Nationalised Undertakings

British Coal Corporation British Gas Corporation. British Nuclear Fuels pIc British Shipbuilders British Steel Corporation British Telecommunications British Waterways Board Central Electricity Generating Board Electricity Council Gas Council London Electricity Board National Coal Board Post Office

( ii) Official Statistical Publications

Annual Abstract cif Statistics British Steel Corporation, Annual Statistics for the Corporation Central Statistical Office, Economic Trends Annual Supplement Central Statistical Office, United Kingdom National Accounts Department of Employment, Retail Prices Indices 1914-1983 Digest cif Energy Statistics Ministry of Power, Statistical Digest Telecommunication Statistics

(iii) Reports and White Papers (in chronological order)

Ministry of Fuel and Power, Coal Mining: Report cif the Technical Advisory Committee (Reid Report) Cmd 6610 (London, 1945). Report cif the Committee on National Policy for the Use cif Fuel and Power Resources (Ridley Report) Cmd 8647 (London, 1952).

229 230 List if Works Cited

National Coal Board, Report of the Advisory Committee on Organisation (Fleck Report) (London, 1955). Report of Committee of Inquiry into the Electricity Supply Industry (Herbert Report) Cmd 9672 (London, 1956). The Financial and Economic Obligations of the Nationalised Industries, Cmnd 1337 (London, 1961). National Board for Prices and Incomes, Report No. 12, Coal Prices, Cmnd 29 I 9 (London, 1966). Nationalised Industries: A Review of Economic and Financial Objectives, Cmnd 3437 (London, 1967). Select Committee on Nationalised Industries 1967-8, The Committee 's Order of Riference, HC 298, 1967-8. Select Committee on Nationalised Industries 1967-8, Ministerial Control of Nationalised Industries, 3 vols, HC 371, 1967-8. Monopolies and Mergers Commission, National Coal Board, 2 vols, 1983. National Audit Office, Report on Department of Trade and Industry: Sale of Government Shareholding in Rolls-Royce plc, HC 243, 1987-8.

Books and Articles

Adeney, M. and Lloyd, J., The Miners' Strike 1984-5: Loss Without Limit (London, 1986). Aldcroft, D. H., British Transport since 1914 (Newton Abbot, 1975). Arnot, R. P., The Miners: One Union One Industry (London, 1979). Ashworth, W., Contracts and Finance (History of the Second World War, UK Civil Series) (London, 1953). Ashworth, W., 'Economic Aspects of Late Victorian Naval Admin- istration', Economic History Review, 2nd series XXII (1969). Ashworth, W., The History of the British Coal Industry, Vol. 5, 1946-1982 The Nationalized Industry (Oxford, 1986). Bagwell, P. S., The Transport Revolution from 1770 (London, 1974). Bank of Scotland, United Kingdom Taxation: Offshore Oil and Gas (Edinburgh, 1976). Barnett, C., The Audit of War (London, 1986). Barry, E. E., Nationalisation in British Politics (London, 1965). Bowley, M., Housing and the State 1919-1944 (London, 1945). Burk, Kathleen, The First Privatisation (London, 1988). Burn, D. L., The Steel Industry 1939-1961 (Cambridge, 1961). Chester, D. N., The Nationalisation of British Industry 1945-51 (London, 1975) . Chubb, B., The Control of Public Expenditure (Oxford, 1952). List of Works Cited 231

Citrine, Lord, Two Careers (London, 1967). Clapham, J. H., An Economic History rif Modern Britain, Vol. 3 (Cambridge, 1938). Clegg, H. A. and Chester, D. N., 'The North of Scotland Hydro- Electric Board', Public Administration, XXXI (1953). Coleman, D. C., 'Naval Dockyards under the Later Stuarts', Economic History Review, 2nd series VI, 1953-4. Colliery Guardian (ed.), National Coal Board: The First Ten Tears (London, 1957). Dean, A. J. H., 'Earnings in the Public and Private Sectors 1950-1975', National Institute Economic Review, No. 74, November 1975. Dean, A. J. H., 'Public and Private Sector Manual Workers' Pay 1970-1977', National Institute Economic Review, No. 82, November 1977. Foster, N. A., Henry, S. G. B. and Trinder, C., 'Public and Private Sector Pay: a Partly Disaggregated Study', National Institute Economic Review, No. 107, February 1984. Friedmann, W. (ed.), The Public Corporation (Toronto, 1954). Gourvish, T. R., British Railways 1948-73 (Cambridge, 1986). Hamilton, R. Vesey, Naval Administration (London, 1896). Hancock, W. K. and Gowing, M. M., British War Economy (History of the Second World War, UK Civil Series) (London, 1949). Hanham, H.J., The Reformed Electoral System in Great Britain, 1832-1914 (London, 1968). Hannah, L., Engineers, Managers and Politicians: The First Fifteen Tears of Nationalised Electricity Supply in Britain (London, 1982). Harlow, C., Innovation and Productivity under Nationalisation: The First Thirty Tears (London, 1977). Harrison,J. F. C., Society and Politics in England 1780-1960 (New York, 1965 ). Heinemann, M., Britain's Coal (London, 1944). Hennessy, P., 'Why the Message must Transcend the Medium' The Independent, 10 October 1988. Hornby, W., Factories and Plant (History of the Second World War, UK Civil Series) (London, 1958). Hurwitz, S. J., State Intervention in Great Britain (New York, 1949). Johnson, P. (ed.), The Structure rif British Industry, 2nd edn (London, 1988). Kay,J., Mayer, C. and Thompson, D. (eds), Privatisation and Regulation - the UK Experience (Oxford, 1986). Kelf-Cohen, R., British Nationalisation 1945-1973 (London, 1973). Kelf-Cohen, R., Nationalisation in Britain, 2nd edn (London, 1961). King, Lord, 'Turning Silver to Gold', The Times, 19June 1987. 232 List of Works Cited

Lee, W. A., Thirty rears in Coal (London, 1954). McCallum, R. B. and Readman, A., The British General Election of 1945 (London, 1947). Marris, N. Murrell, Joseph Chamberlain: the Man and the Statesman (London, 1900). Morrison, H., Socialisation and Transport (London, 1933). Nove, A., Efficiency Criteria for Nationalised Industries (London, 1973). Ostergaard, G. N., 'Labour and the Development of the Public Corporation', The Manchester School, XXII, 1954. Ovenden, K., The Politics of Steel (London, 1978). Payne, P. L., The Hydro (Aberdeen, 1988). Payton-Smith, D. j., Oil (History of the Second World War, UK Civil Series (London, 1971). Peacock, A. T. and Wiseman, j., The Growth of Public Expenditure in the United Kingdom (Princeton, 1961). Postan, M. M., British War Production (History of the Second World War, UK Civil Series) (London, 1953). Pryke, R., Public Enterprise in Practice: The British Experience of Nationalization over Two Decades (London, 1971). Pryke, R., The Nationalised Industries: Policies and Performance since 1968 (Oxford, 1981). Reid, G. L., Allen, K. and Harris, D.]., The Nationalized Fuel Industries (London, 1973). Robens, Lord, Ten rear Stint (London, 1972). Robinson, H., Britain's Post Office (London, 1953). Rogow, A. A., The Labour Government and British Industry 1945-1951 (Oxford, 1955). Ross, G. W., The Nationalization of Steel (London, 1965). Sayers, R. S.,Financial Policy 1939-1945 (History of the Second World War, UK Civil Series) (London, 1956). Seaman, L. C. B., Post- Victorian Britain 1902-1951 (London, 1966). Shanks, M. (ed.), The Lessons of Public Enterprise: A Fabian Society Study (London, 1963). Shepherd, W. G., Economic Performance under Public Ownership: British Fuel and Power (Yale, 1965). Stiglitz, j. E., et al., The Economic Role of the State (Oxford, 1989). Supple, B., The History of the British Coal Industry, Vol. 4, 1913-1946 The Political Economy of Decline (Oxford, 1987). Tawney, R. H., 'The Abolition of Economic Controls, 1918-1921', Economic History Review, XIII, 1943. Tawney, R. H., The Radical Tradition (London, 1964). Taylor, A.]. P., English History 1914-1945 (Oxford, 1965). Tivey, L.]., Nationalization in British Industry, 2nd edn (London, 1973). List rif Works Cited 233

Tivey, L. ]., The Nationalised Industries Since 1960: A Book of Readings (London, 1973). Trinder, C., 'Pay of Employees in the Public and Private Sector', National Institute Economic Review, No. 97, August 1981. Vaizey, ]., The History if British Steel (London, 1974). Young, G. M.and Handcock, W. D., English Historical Documents, Vol. XII(I) (London, 1956). Index

Admiralty 205 board membership, nationalised aero-engine industry 36, 148, 183, undertakings 69-73 205 British Aerospace 40, 41 agency factories 7, 205-6 British Aircraft Corporation 39-40 agriculture, subsidies to 161 British Airports Authority 30-1 ; Air Corporations Act (1949) 22 see also airports Air Corporations Act (1966) 33 British Airways 22,41, 147, 153, Aircraft Production, Ministry 154, 168 of 17, 205 British Broadcasting aircraft types, government Corporation 6, 12 restrictions on choice of 86-7, British Coal Corporation 169; see 88, 145 also National Coal Board Air France 147 British Electricity Authority 25, Air Ministry 17 28,64-5, 71, 72,81, 85, 86, airports 15, 30-1, 20 I, 206 178 Air Transport Licensing Board British Electric Traction 86 Company 34 Alitalia 146 British Gas Corporation 31,32, Anglo-Persian Oil Company 3, 36,39,41,57,65, 112, 114-15, 12, 36; see also British Petroleum 117, 161, 199 Company British Leyland 15, 37, 55, 56, 80, Area Electricity Boards 25, 29, 148-50, 192, 197, 198; see also 64-5,71,111 Austin Rover; BL Ltd; Rover Area Gas Boards 25, 31, 47, 65, Group 71, 76, 112, 113 British Motor Holdings 148-9 Atomic Energy Authority see British National Oil United Kingdom Atomic Energy Corporation 39,99, 161 Authority British Nuclear Fuels Ltd 37-8 Austin Morris 149 British Overseas Airways Act Austin Rover 37, 148; see also BL (1939) 6 Ltd; British Leyland; Rover British Overseas Airways Group Corporation 6, 18, 22, 72, 76, 145-6 Bank of England 9, 12, 18, 19, British Petroleum Company 12, 76, 179 36,39,205 Beeching, Richard (later British Railways Board 28, 33-5, Lord) 72, 73, 84, 124 47,72, 120, 122-3, 128,200; see BL Ltd 37, 148, 149, 150; see also also British Transport Austin Rover; British Leyland; Commission; railways Rover Group British Road Services 127

234 Index 235

British Shipbuilders 40, 57, Central Transport Consultative 150-1, 197 Committee 166-7 British South American Airways Chamberlain, Joseph 46 Corporation 22 channel tunnel 200 British Steel Corporation 32-3, Citrine, Lord 71,81 55, 73, 79, 133-8; see also iron Civil Aviation Act (1946) 21-2 and steel industry Civil Aviation, Ministryof 30 British Telecommunications Coal Act (1938) 6 (British Telecom) 40-1, 199 Coal Commission 7, 20 British Transport coal industry 5, 10, 18, 19,41, 56, Commission 23-4,28, 33, 63,76,91-103,109,112,159, 46-7,49,66, 70-1, 72,85-6, 161, 168-9, 172-3, 177, 183, 118,121, 122, 175; Executives 189, 195, 196-7; costs 7,56, of 23-4,66, 121, 122; later 93, 95, Ill; output 7, 92, 95, subordinate bodies of 27-8 100; prices 50, 55, 93-4, 95, British Transport Docks 97,99, 101, 110, 112, 116, 153, Board 28,35 154; international price British Waterways Board 28, comparisons 93, 98, 154; see 34-5, 57 also National Coal Board Britoil pIc 39 Coal Industry Act (1965) 95 Burmah Oil Company 36 Coal Industry Nationalisation Act buses 24, 154, 175, 189; see also (1946) 19-21,44 National Bus Company; Scottish coke 21,26, 31, 112, 113 Transport Group; Thomas coke ovens 20,99,112-13 Tilling Ltd colliery methane supplies 113 Colvilles 132 Cable and Wireless Ltd 13, 18, Commonwealth agreements 13, 22-3,41, 76 22 Caledonian Steam Packet Commonwealth Telegraphs Act Company 34 (1949) 23 Cameron, Sir John 171 Companies House 206 capital: formation by public compensation for corporations 81-2, 156, 157, nationalisation 21-2, 76 159, 162, 163; provision for competition 9-10, 202, 206; see nationalised undertakings 21, also monopoly, in relation to 45, 75-83, Ill, 143-4, 155, 159, nationalisation 163,179,184,203; see also Conservative party 6, 15, 19, 26, investment 29,30,35-6,41,49,60 Carter Paterson 24, 27 Consumer Councils 166-7 Castle, Barbara (Minister of co-ordination, as an argument for Transport) 122 nationalisation 10, 62, 63, 165, Central Electricity Authority 28, 173-7, 185 29,48,81 cost-benefit analysis 83, 125, Central Electricity Board 5-6, 207 60 Crown Agents 13 Central Electricity Generating Board 29, 37, 38, 86, Ill, 174, David MacBrayne Ltd 34 195 Davies, Ernest 44 236 Index debts written off 28, 33, 35, 37, financial obligations of nationalised 80, 82, 95, 96, 119, 134, 145, undertakings 21,45-9,50-4, 150, 158; see also financial 56-8, 75, 109, 110 reconstructions of public financial reconstructions of public corporations corporations 33, 35, 79, 95, 96, defici ts of na tionalised 97, 102, 135, 138, 145, 146, undertakings 28, 50, 55, 84, 99, 158-9; see also debts written 101, 102, 103, 118-20, 134, 135, off 137, 145, 151, 159, 161, 163, 188 Firth Brown Ltd 131 denationalisation see privatisation Forbes, Sir Archibald 25, 129 d' Erlanger, Sir Gerard 146 Ford Motor Company 149 direction, ministerial powers franchise, parliamentary 4 of 45, 48, 84, 86, 182 Freightliners Ltd 34 discounted cash flow techniques Frigg gasfield 115 53 Fuel and Power, Minister and dock labour scheme 200 Ministryof 20, 45, 63, 77, 86, 87,92, 183, 199 Economist, The 130 Edwardes, Sir Michael 149 Gaitskell, Hugh 14 Electricity Act (1947) 24-5 Gas Act (1948) 25 Electricity Act (1957) 29 Gas Act (1965) 31 Electricity Council 29, 65 Gas Act (1972) 31 elctricity industry 5, 52, 55, 57, Gas Council 25,31,32,71,112, 63,76,86,91,98, 103-11, 158, 113; see also British Gas 176, 177, 198; costs 57, 107; Corporation output 104; prices 85, 107, gas industry 31, 52, 55, 63, 76, 109-10, 153, 154; see also 91,94,109,111-17,176,195; generating plant; nuclear power prices 112, 114-15, 116, 117, stations 153, 154, 165; sales 112, Electricity Reorganisation 115-16; see also North Sea gas ( Scotland) Act ( 1954) 28 and oil employment in nationalised generating plant 104-9, 174, 176, undertakings 156, 157 177, 178; see also nuclear power energy costs 153, 154, 198,201 stations energy policy 81,175,176,177,198 Gourvish, T. R. 118, 119 Enterprise Oil pic 39 grants to nationalised Estimates, Select Committee on 30 undertakings 35, 50, 55, 57, 80, European Coal and Steel 95, 99, 119-20, 180, 184; see also Community 33, 55, 133, 134 subsidies European Community 154 Guillebaud Committee on Exchequer and Audit Railwaymen's Pay 86 Department 2 external financing limits 56-7, Hardie, Keir 8 III, 117 Harlow, Chris 195 Hawker-Siddeley pic 40 Fergusson, Sir Donald 183 Heath government 35, 36, 54, Finance Corporation for 123, 134, 180 Industry 132 Herbert Committee 29, 48 Index 237

Her (His) Majesty's Stationery Labour party 4, 8, 14--15, 41, Office 14, 206 42-4,60, 61, 131 housing, subsidies to 161 labour relations under Hurcombe, Sir Cyril (later nationalisation 165, 172-3, Lord) 71 191-2 Hydrocarbons Great Britain 32 Land Drainage Act (1930) 38 H ydro-Electric Development land nationalisation, proposals (Scotland) Act (1943) 18 for 8-9 Let Us Face the Future 9, 10, Imperial Chemical Industries 72, 14 113 Leyland Motor Corporation 148 inflation 54,95, 123, 140, 152, Liberal party 4, 60 153, 179, 180, 188, 193 liquefied natural gas 31, 113 infrastructure, quality and London Electricity Board 57 improvement of 178-9, 200-1 London Passenger Transport interest rates 75-6,78-9,103,159 Board 6, 24, 60, 181 investment: level of 81, 121, 122; London Transport Board 28, 34, regulation of 81,121, 174, 190; 35,48 see also capital London Transport Iron and Steel Act (1949) 26 Executive 23-4, 35 Iron and Steel Act (1953) 26-7 Lufthansa 146 Iron and Steel Act (1967) 32 Lysaght, J., Ltd 131 Iron and Steel Act (1969) 33 Iron and Steel Act (1972) 33 mail services 12, 52, 139, 200, Iron and Steel Board, 201; productivity 142-3; pre-nationalisation 25, 129 tariffs 140, 142 Iron and Steel Board (1953 managerial independence, degree of onward) 26-7, 131, 132 in nationalised undertakings 61, Iron and Steel Corporation 26, 62, 83-9, 179-84, 187, 189-91, 47,71,130, 131 193, 203 Iron and Steel Holding and Marx, Karl 4 Realisation Agency 27 mineworkers' strikes: (1972) 55, iron and steel industry 14,26, 41, 80, 97, 99, 106, 172, 192; 55,56,76,91,94,129-38,158,168, (1974) 97,98,99,106,172, 206; international comparisons 194; (1984-5) 99, 106, Ill, 131,133, 135, 137; see also 161, 176 British Steel Corporation Mining Association of Great Britain 196 Jaguar Cars 150 Monopolies and Mergers Japan Air Lines 146 Commission 89 monopoly, in relation to King, Lord 147 nationalisation 10, 51, 140, 196, KLM 146 199,206-7; see also competition Morrison, Herbert 6, 9, 60, 62, Labour governments: 70,84, 85, 129-30, 181, 182, (1945-51) 11, 17-26, 30, 61, 184, 191, 204 76,129; (1964-70) 15,31,54, motorways and trunk roads 175, 188; (1974-9) 55, 56, 123 179, 200 238 Index municipal businesses 13, 30-I, oil industry 32; see also British 34,35,61-2, 76, 127 National Oil Corporation; North Sea gas and oil National Board for Prices and oil prices 94, 97, 98, 110, 153, Incomes 53 176 National Bus Company 34, opencast mining 20, 92, 94, 102, 126 - 7; see also buses 103, 199 National Carriers Ltd 33 organisational structure of National Coal and Power nationalised undertakings 60-7 Corporation, proposed 63 overstaffing in nationalised National Coal Board 19-21, 28, undertakings 145, 147, 168-9 32, 36, 44-6, 52, 55, 63-4, 68, 71,74,77,78,79,80,81,82,85, Pan American 146 87,91-103,161,169,176,178, Parker, Sir Peter 73 179,191,194,198,199; see also Passenger Transport British Coal Corporation; coal Authorities 34, 35, 175 industry Petroleum and Submarine Pipelines National Coal Board (Additional Act (1975) 39 Powers) Act (1966) 32 petroleum revenue tax 39 National Economic Development Pickfords 24, 27 Council 110 Plan for Coal (1950) 92, 94 National Enterprise Board 149 Plan for Coal (1974) 98 National Freight Corporation 33, planning, economic, by 34, 35, 128 government 45, 62, 165, nationalisation, early proposals 2,8 178-181, 186-9 nationalisation, general political interference in nationalised programmes 8 -II, 14-15, undertakings 179-85,189-91, 17-26, 60, 75 202-4; see also managerial Nationalised Industries, Select independence Committee on 89 Post Office I, 12, 23, 30, 52, 60, National Union of 84,91, 138-44, 189, 195,201, Mineworkers 93, 98 204-5 NCB (Exploration) Ltd 32 Post Office Act (1969) 30 New Earnings Survey 169 Post Office Corporation 30, 55, New Town Corporations 12 138, 143,205 Next Steps 206 Post Office User Councils 166 North of Scotland Hydro-Electric price control 53, 54, 55, 115, Board 18, 25, 28 122-3, 140, 161, 190 North Sea gas and oil 31, 36, 39, prices and price policies of 99, III, 176 nationalised undertakings 51-3, Nove, Alec 201, 202 54,56, 79-80,83, 127-8, 153-4, nuclear power stations 29, 37-8, 155, 163, 165, 179, 180, 193 86, 105, 106-7, 174, 176, 208 prices, general 54, 109-10, 116, 123, 153; see also inflation objectives of Prime Minister's Efficiency nationalisation 42-58, 82, 88, Unit 206 89, 186 privatisation 14, 31, 40, 41, 126, occupational hazards 191 128,130-1, 150, 155,201,206,208 Index 239 productivity in nationalised Rolls-Royce 15,36-7, 148, undertakings 95, 98, 108, 124, 197-8 126, 137, 146, 150, 168, 189 Rover Group 14, 37, 148; see also profits of nationalised undertakings: Austin Rover; BL Ltd; British achieved 98-9, 10 1, 102, 109, Leyland 116-17,126,127-8,131,137, Royal Dockyards 1, 17 140, 141, 144, 146, 157-8, 163; Royal Navy 3, 151 required by government 21, Royal Ordnance Factories I, 17 45-6, 109, 152, 153, 155, 190, Ryder, Lord 149 193, 203; see also deficits of nationalised undertakings; Sabena 146 surpluses earned by public salaries of nationalised board corporations members 69, 70, 71-3 Pryke, Richard 108, 109, 142, Scottish Aviation pic 40 153 Scottish Motor Traction Company Public Accounts Committee 2 Ltd 24 public corporation, characteristics Scottish Transport Group 34, of 5-6,60-1,66-7,85,181-2, 126 185, 202, 204 Shell (UK) Ltd 72 public dividend capital 33, 61, 75, Short Brothers 17 - 18, 60 79, 134 Short Brothers and Harland 18 public interest: as an objective of Slattery, Sir Matthew 146 nationalisation 44, 56, 203; South of Scotland Electricity statutory references to 45-7, Board 28, 37, 38, 174 58 staff recruitment and Public Service Obligation training 67-71, 74-5 Grants 35 Statutory Corporations (Financial Provisions) Act (1974) 55 Qantas 146 steel industry see iron and steel quality of nationalised goods and industry services 165-6 steel strip mills 132, 137 Stevenson, Sir Matthew 87 railways 2, 7,8,41,49, 50, 55, subsidies 47,97, 155, 158-61, 71,81,94, 118-25, 159, 167, 163, 180, 197; see also grants to 168, 173, 175, 189, 190, 192, nationalised undertakings 197, 208; charges 121, 122-3, Supply, Ministry of 25,205 153; traffic share 119, 125; see surpluses earned by public also British Railways Board; corporations 109, 110-11, British Transport Commission 116-17,120,157-8;seealso Reid Repoert 10, 19,63 deficits of nationalised research and development 195 undertakings; profits of Richard Thomas and Baldwins nationalised undertakings Ltd 27, 129, 131 Ridley Report 92, 93 Tawney, R. H. 43 River Boards Act (1948) 38 technological innovation under road haulage 14, ll8, 153 nationalisation 94, 106, Road Haulage Disposal Board 27 113-14,117,124,143-4,165, Robens, Lord 87 193-6 240 Index telecommunications 12, 52, 91, Transport (London) Act 138-44, 154, 178-9, 189, 195, (1969) 35 201; productivity 144; Transport, Minister and Ministry tariffs 144, 165 of 33, 50, 70,86, 122, 167, 175, telegraphs 2, 138, 139, 140, 183, 190 141 Transport (Railway Finances) Act telephones 2, 138-9, 143-4 (1957) 28,50 telex services 139 Treasury 21, 74, 77, 78, 179, 184, Thatcher governments 40, 137-8, 203 161 Trustee Savings Banks 13 Thomas Tilling Ltd 24, 126 trade unions 68, 70, 98, 135, 147, UK Nirex Ltd 38 168,171-2,192-3 unemployment 4, 5 Trades Union Congress 8, 9, IO United Kingdom Atomic Energy transport 2,65-6,76,81,91, Authority 29, 37, 38,86, 195 117-28,153,158,161,167,175, 182; see also British Transport Vehicle Inspectorate 206 Commission; railways; road Vickers Shipbuilding and haulage Engineering Ltd 151 Transport Act (1947) 23-4, 46-7, 166 wages 93; public and private Transport Act (1953) 27,47, 121, sectors compared 169-71, 180, 175 188, 192 Transport Act (1962) 28,47,66, Water Authorities 38-9 119, 167, 175 welfare objectives and achievements Transport Act (1968) 33, 119 of nationalisation 43-6, 56, 190 Transport Act (1974) 35 Wilberforce Tribunal 192 Transport Consultative women, pay of in public and Committees 166-7 private sectors 171 Transport, Department of 66, Wood, Sir William 71 179, 200 workers, benefits of nationalisation Transport (Disposal of Road to 167-72, 185, 191-2; see also Haulage Property) Act welfare objectives and (1956) 27 achievements of nationalisation Transport Holding Company 28, World War: First 2,3,7; 33,34 Second 3, 7, 91, 205