19 APRIL 1957, Page 7

I AM GRADUALLY coming to the conclusion that the present

Government's best friends are the leaders of the Labour Party. Their latest pious inanity is contained in a report which was 'leaked' over the weekend, that they are considering a scheme put forward by Mr. Gaitskell a few months ago

whereby the State would bid for control, or a share in control, of all firms with a capital of £2f million or more. Even by Labour standards it is absurd to think merely in terms of size. Restrictive practices are often much more damag- ing in an industry where there are a number of small and relatively inefficient firms; whereas some of the biggest firms—particularly those which have adopted decentralisation—are ex- tremely competitive and efficient. It is little use arguing with the Labour leaders in their present frame of mind : they are so busy thinking up ways to make themselves look different from the Con- servatives that they may fall for any suggestion, however ridiculous, which can be advanced as distinctively Socialist. Still, they might bear in mind that the German Social Democratic Party has just abandoned nationalisation as a policy; and that its leader, Herr 011enhauer, has said that there would need to be a very clear mandate from the coming elections for any form of public con- • trol of industry to be considered. Before Mr. Gaitskell lets this project go any further he should test out opinion by getting the views of the workers in those industries for which State take- over bids are contemplated. He would get a very short answer indeed.