31 MAY 1945, Page 2

The Government's Coal Policy

The Government's policy for the coal industry, as outlined by Major Lloyd George on Tuesday, will need a great deal of amplifica- tion before judgement can fairly be passed on it. Every competent authority on mining, including Mr. Foot, who stated a case for the mine-owners' point of view, has agreed that nothing less than drastic reorganisation will set the industry on its feet again ; and the Reid Report, prepared by technical experts, has set forth the minimum requirements. Efficiency is the keynote, based upon central and regional planning, adequate finance, regrouping, re-equipment, and a pooling of certain area services. The question of ownership is far less important than insistence on the reforms needed for effi- ciency. As had been expected, the present Government has decided to continue the working of the industry under private enterprise, "provided that" it is efficiently conducted and planned. It is this pro- viso that is all-important. The intention, said Major Lloyd George, is to implement the main recommendations of the Reid Report. That k good, if the scheme will really have that effect. It is proposed to set up a central authority, not, as in the Foot Report, appointed by the industry, but by the Minister of Fuel. Groupings and amalga- mations would be carried through voluntarily, if possible, but other- wise by ccmpulsion ; and it will be observed that Major Lloyd George spoke of "coalfields" and not "coal areas" as the units to be con- sidered, thus appearing to depart from the Reid recommendations. He said that the making and carrying out of the plans would be undertaken by the industry itself. Does this mean that there would be two central authorities, one appointed by the Government and one by the industry to do the real work? Here is one point that requires clarification. And what are to be the powers of the official body? Will it really be vested with full authority to insist on recon- struction, to make amalgamations, to close uneconomic mines, and safeguard the interest of consumers? Unless it is endowed with mandatory powers enabling it to insist that the reforms it considers necessary shall be carried out the present position, bad as it is— there was another 5 per cent. drop in coal production in 1944—will be little bettered. If the Coal Commission were given the necessary authority it could do what is needed.