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M I L ?
THIS DOCUMENT I S THE FROPERTY OF H I S B R I T A N N I C M A J E S T Y ' S GOVERNMENT.
y*j
SECRET.
copy m.
CP.44
*5 (
( 36 3
C A B
Coal Mines
( Part
II
of
l \ i o t e "by t h e
I
circulate
to
"by t h e
Secretary
for
I N E
T.
Reorganization
Commission.
the
Act,
Coal Mines
President
the
of
Cabinet
the
the
Board
of
Trade,
13th February,
1956.
of
attached
Mines.
W.R.
Board
1950Q
Trade.
memorandum
THE GOAL MIMES REORGANISATION
(Part
II
of
the
Memorandum b y
1,
Mines
With the
known
that
II
it
words,
abandon
for
the
coal
of
All
the
considered
the matter
Commission
of
converting
the
greater
it
at
1919
industry
average
present
size
cannot he
of
or
consists.
established machinery
amalgamations
unwilling
entirely
or
for
minorities
with
the
no p r o g r e s s
mutual
Goal
the
the
gave
colliers
against
7
to
one
as
the
and
he
Commission
owners
to
the
owners,
extent
hut
with
a characteristic
to promote
the
industry
long
of
in
the
the
another,
of
combination
1930
of
(part
amalgamations
of
right
1926
to
of
ask
to
the
which
out
initiative
that
of
little
inertia
and
industry.
set
d u t y was
up
"to
and "for
where
the
of
1926
the
II)
interest".
gave
and imposed upon
of
compelling
the
industry"
national
Statutory
carry
the r e s u l t
coal mining
same
Act
the
have
of
leaving
whose
the
other
need
of
Commission,
assist
In
of units
Act
so
reorganisation
Commission
the
to
Mines Act
the
amalgamation
the
Industry
participate,
Mines R e o r g a n i s a t i o n
purpose
Mining
even
on
hundred odd u n i t s
against
Coal
has
from t h e
number
made
the
1930;,
delayed
emphasised
fifteen
enahle
colliery
has
amended.
years,
was
distrust
Accordingly,
to
it
compulsory
a smaller
the
itself,
or
Coal
Summary.
have
The
to
1936)
the
not?
recent
into
than
of
of
and Committees which
during
onwards,
Report
Coal Mines A c t ,
a policy
Commissions
Mines.
5069
Historical
2.
for
(Cmd,
the
industry,
1950).
recent
should be repealed
mining
Act,
the
and a d e c i s i o n
question whether
to
of
Mines
Secretary
Commission
Part
proved unworkable,
are we
the
publication
Reorganisation
"become
Coal
COMMISSION.
they
colliery
Commission
to
further
that
appear
The A c t
Court
the
of
1930
coerce
owners
the
to
obligation
submit
to
in certain
the
considered
concerned
3.
Court
was,
certainly
t o do
commenced t h e i r
of
work,
use the machinery
that
and w h e r e t h e
of
hoped
resort,
for
it
the
themselves
were,
hope of
that
it
Parliament
might n o t
compulsion.
however,
attitude
of
declaration
holds
hound
of
was g i v e n i n
the
support
An e x t r a c t
coal
in
still
owners
obstructive
so p r o n o u n c e d
and
House of
1932, hy t h e Attorney
good,
and t h a t ,
t o a s k t h e new Government
their
doubted
disappointment.
the
General,
a
This
the
and so f a r
from t h e A t t o r n e y
that
for
confidence.
Commons on
General's
still
speech
attached.
The West Y o r k s h i r e
4.In
spite
colliery
of t h i s
specifically
Commission t o
establish
amalgamation.
the
to
year,
of
88% o f
schemes,
"partial"
the
of
and t h e
a
case for
the
the
compulsory
steadily
effecting
Powell
submit
with
to
voluntary
Duffryn
Eventually,
to the
Court
a
West Y o r k s h i r e ,
which
had
(56 o u t
the
Mining
able., from t i m e
Collieries).
amalgamation for
the
l e g a l powers of
owners i n
p r e p a r e and
p r o d u c t i o n ) of
-2­
of
however*.proceeded
merger
of a l a r g e m a j o r i t y
total
the
the Court
Welsh A s s o c i a t e d
to
A
attitude
and were a l s o
colliery
they decided
support
"before
(notably the
Company w i t h t h e
scheme
of
give help to
amalgamations
last
the
questioned
The C o m m i s s i o n ,
preparation
time,
declaration,
Case
owners a s a whole remained h o s t i l e ,
Association
the
no one
to
T h o s e who
the
t h e Mining A s s o c i a t i o n became
declaration
May,
of
i n 1931?
it
they
prove necessary
a g a i n doomed t o
change of Government
31st
part
as
Commission when
Nevertheless,
on t h e
With t h e
specific
owners
in 1930,
and would he u s e d .
action
the Commission f e l t
and
they
colliery
Members o f t h e
could
effective
prepare
where
s u c h , a m a c h i n e h a d now b e e n made a v a i l a b l e
the last
is
to
so.
I think the
was t h a t
themselves
s c h e m e s of a m a l g a m a t i o n
them e x p e d i e n t ,
failed
It
circumstances
of
owners
60 c o n c e r n s ,
concerned.
or
This
case was heard by the Railway and Canal Commission in May last and
was rejected both on merits and on law, as the Reorganisation
Commission record in their present Report.
5.
Subsequent to this the legal issue regarding "total"
amalgamations was referred to the Law Officers of the Crown,
and they have now advised definitely that if compulsory
amalgamation is desired as a matter of policy, amendment of the
law is necessary.
The Present ^s^itipn,^
6.
The position with which the Government is now faced,
therefore, is this.
The Commission was intended by Parliament to
have powers of compulsion:
and in the debates on the Bill of
1 9 3 0 all parties assumed that the Bill gave those powers.
It has
now, however, become clear that the Act as drafted does not give
the powers which it was intended
(and thought) to give.
We
cannot leave matters as they are, namely, have a statutory
(and
expensive) Commission in being bereft of any real authority.
In
my view, therefore, the Government has before it the alternatives
cf repealing Part I I . (and thereby specifically abandoning the
policy of furthering amalgamations in the coal industry, if
necessary by compulsion) or of amending it in such a way as to
give the Commission the powers which Parliament originally intended
to give them.
7*
I would submit that we cannot contemplate the repeal of
Part I I ,
In the first place, on economic grounds, apart from the
well-known advantages that are ordinarily claimed for units of a
reasonably large size, amalgamations are a vital complement to the
policy of centrally controlled selling.
That policy was
successfully pressed upon the coalowners as the most likely means
of getting results quickly enough to avoid a strike.
But it is
only a. step along the road, not the end of the journey, a s , with
so many different participants, organised selling would not be
nearly so successful as it would be in conjunction with a properly
organised industry.
Nor is it by itself likely to ensure the
concentration of the industry to the extent that is desirable.
-3­
8.
In
the
impossible
second, p l a c e ,
to
advocated by
go back
a
on a p o l i c y
series
of
accepted by Parliament,
views
it
of
has
the
that
strengthened
policy
since
the
has
the
had
the
of
3rd December
Act
in
been
to
connection
that
time,
of
given.
declared
in
the
with
course,
issue
amalgamations
are
desirable
the
be
that
they w i l l
effective
9.
I
voluntary
owners
was
favourably
the
that
when
elements
powers
the
to
the
in
coal
by
its
has
The
Governments
recently
the
Part
policy
II
as
decision
longer
but
as
Prime
of
a
the
whole.
had not
yet
whether
whether
I
they
am
compulsion
of
further
should,
in
convinced
or under
the West
overriding
voluntary
the
they
are
owners
are
an
industry
as
are
heard,
or,
of
will
of
potent
taken
imminent
face
But
inertia
characteristics
of
an
as
I
case
am
is
coal
as
will
they
distrust
have
Only
the
and
ever
if
progressive
involved
they
it.
industry:
a whole.
the unpopularity
removed,
with
and. m u t u a l
will
are
absolutely
disappear
to-day
coal
alone)
compulsion
the
reality
indeed,
by
individual
Yorkshire
power
action
to
progress
number
amalgamation.
referred
voices
all.
except
despair
evidenced
that
of
industry.
A considerable
colliery
making t h e i r
at
all
towards
in
made
years
as
functions
or n o t ,
clear
on t h e A d d r e s s ,
no
reports
amalgamation.
Officers'
the
five
Moreover,
therefore
the
In the
quite
he
and
ignore
successive
Government's
upon
inquiry,
cannot
for
would
compulsion.
such f i x e d
compulsory
voices
at
once
am c o n v i n c e d
been,
of
previously
which are
I
be
disposed,
impulse
I have
not
action.
(as
certain
forced
threat
do n o t
is
of
last
of
law.
important
The
ultimate,
need
Law
unanimously
been
itself.
the
support
the
has
h a s made
the Debate
the
it
we
it
of
the
became
last,
referred
published
reduced
1930
as
Commission
experience
grounds,
courts
especially
time
and not
the Act
Minister
At
to
which
impartial
Reorganisation
from' t i m e
own o p i n i o n
on p o l i t i c a l
raise
in
their
10.
final
For
this
breathing
re-affirming
should
the
which
the
lapse
undoubted
the
industry
compulsory
Order
that
the
Parliamentary
Board
a
of
result
the
of
whole
which
the
three
as
to
months
invested
nor
amalgamations
dispute
the
is
as
of
the
wage
a
any
too
that
in
of
terms.
any
the
in
take
industry
as
because
Parliament
industry.
that
it
of
and a l s o
the
be
should
we m a y
return
t h e men w h i c h
have
a form
a c t i o n by
clearly
reasonable
to
in
should
it
dispute,
structure
shown a l l
to
alive
existing
welcome
the
so
wage
of
provided
creating
approved
possible,
atmosphere
as
Commission
Bill
the
neither
a decent
years
If
improve
. organization yields
eight
keeping
to-day
have
had
instrument
by
compulsion
passage
thus
settlement
help
i n any
Bill
Commission would
t o make
word
in
the
Trade,
scon
would
the
that
the
of
and
after
have
1938
prepared
of
better
nation
might
last
the
thus
last
suggest
application
effective
control.
my v i e w "become l a w
advantage
the
one
powers
two y e a r s
would
amalgamations
of
of
last
and
compulsory
and a f t e r
the
recommend
owners,
compulsorily
has
also
I
the
a period
right
Court
the
preclude
re-organise,
suggest
an
for
Commission^
of
The
to
that
I
the
Bill.
therefore
space
specifically
until
the
reason
its
The
present
on t h e
capital
employs.
Rec ommendation.
11.
I
therefore
forthwith,
and
as possible,
submitted
to
the
and
re-establish
to vest
in
deficiencies
the
amalgamations
in
in
voluntary
action
the
a proposal
be merely
assumed
it
of
compulsion,
in
its
actual
the
II
a.Bill
of
doubt
the Act
by
the
the
is,
with
of
novel
law
the
nor
the
application for
-5-
that
be
opinion,
owners
everyone
a period-of
are
by
themselves.
it
since
difference
would be
they
secured
revolutionary:
important
now r e - a f f i r m e d ,
to
Officers'
extent
cannot
coal
t o be what
the
as
compel
and
the
Law
so
soon
to
interest
neither
1930,
as
Commission powers
national
is
Committee
Parliament
to
part
prepared
of
industry
the
of
be
intentions
coal
on
should
Home A f f a i r s
disclosed
beyond
the
declaring
that
that
Reorganisation
desirable
Such
to
amend P a r t
remedy
to
recommend
193 0
that
specifically
would
the
has
power
post-dated.
not l e s s than
H.C.
12/2/36
two years,
Official
Report
-
51st
May,
1932.
EXTRACT PROM THE ATTORNEY GENERAL'S SPEECH
ON THE SECOND READING OF THE COAL MINES B I L L .
Another
been
no
blame
fact
it
is
the miners;
that
would
as
out
Part
of
II
committed
that
the
proceed
result
way
the
to
hy
with
its
that
we h a v e
for
12 m o n t h s ,
and an
it
practical
repealed.
Board
the
they
of
already
the
have,
do
conditions
is
that
to
Mines
to
but
was
of
the
hoped
the
in which
and a
in
II
of
long
the
is
the
it
should
opportunity,
its
as
Act
this
task
Bill
reorganisation
to
v/ith
of
be
the
encourage
the
powers
will
help
can
a
thought
might
President
force
stability
they
necessary
into
hy
certainty
comparative
of
and
up
Bill
was
that
an
this
set
that
intend
as
put
passing
when
undertake
that
to
task
certainly
Part
anything
the
it
because
that
energy
possible
Commission
and
the
industry
for
as
Commission
but
commission
not
Act,
there
b e e n more
h a v e "been,
proceeded
up
hope
up t h i s
The M i n i s t e r
Reorganisation
create
only
politics
will
they
the
with
There
the
may h a v e
Government,
can take
assurance
Trade
of
""Why h a s
industry.
Parliament
set
not
II
the
say
Reorganisation
not
me w a s ,
owners
has
the
task.
for
vigour
in
Act
Government
asked
do n o t
Part
of
the
1930
it
now
was
of
on behalf
the
of
I
prevailing
say,
The
reorganisation
a
uncertainty
is
which was
reorganisation?"
than
I
question
take
to
place.