Spectator's Notebook
cVRIL MUSGRAVE doesn't like being pushed around. It has already emerged that, along with the three other Government-appointed direc- tors of Short Brothers and Harland, he is threatening to resign unless the Government comes clean about its plans for the Belfast air- craft company within the next few days. What has not yet become known is that an even bigger row is threatening to blow up between the Government and Sir Cyril in his capacity as chairman of the Iron and Steel Board.
The point at issue is steel prices. The story is a complicated one, but looks like becoming yet another landmine in the path of the prices and incomes policy. Briefly, the facts are these. The Government's notorious 'early warning' White Paper, which covers everything from Sunday newspapers to meat pies, specifically excluded steel from the prices and incomes policy machinery since steel prices were already regu- ated by a state agency, the Board. The steel- masters, in the usual way, a few months ago asked the Board for a rise. The Board, under Cyril Musgrave, has been investigating the steel- masters' case, in the light—inter alia—of Mr. Brown's prices and incomes policy, and has decided that the industry should have a price rise of around 31 per cent.
Enter the hapless Minister of Power, Mr. Fred Lee, charged with implementing the Govern- ent's policy that all prices are a Bad Thing, and e higher the prices the graver the sin. Mr. Lee as made no public pronouncement. But behind e scenes he has been putting very heavy pres- ure indeed on the Board to persuade it to back own on its price award. So far, Sir Cyril has tood firm. Result: deadlock.
All this raises an important issue. The Iron nd Steel Act certainly gives the Minister of tic the right to overrule a price decision by Inc Board. But it specifically lays down that this must be done by a directive approved by both Houses of Parliament. The Government's attempt o avoid public debate and bring pressure to I:ar behind the scenes is therefore not only Igrettable but unconstitutional, too. Moreover, Lee is further embarrassed by the fact that, hen he first took office, the industry and the and both came to him offering to stop price- g altogether and return to a good old- ashioned capitalist free-for-all. Oh no, said Fred
L. to Cyril Musgrave. You go on fixing prices just as you have always done.
We haven't heard the last of this.
Previous page
