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Extra info for Power, Competition and the State: Volume 1: Britain in Search of Balance, 1940–61

Sample text

41 On the other hand, they (and the TU C) were understood by member firms or unions to be the only substantive defence against complete state regulation. The banks, Stock Exchange or insurance companies therefore found it expedient to listen more closely than usual to the Bank of England at a time when normal banking - other than private accounts - had ceased to exist. Not all aspects of the City looked for sponsorship to the Treasury: Trade retained responsibility for licensing of banks and insurance companies and company law.

57 Most participants suffered no such doubts - or kept quiet, accepting that unusual times needed men and remedies that would get things done quickly. The TUC took care always to emphasise that it had 'never challenged the rights of parliament as the final authority on legislation'. Others, like Beveridge, would have gone further and instituted fuller planning to achieve, in the people's interest, a 'people's peace'. The state, he thought, had directed employment but had not yet ensured fair distribution of rewards; instead, its intervention had vitiated the logic of private industry and collective wage bargaining.

Industry was fragmented, on sound enough functional lines, between Supply, Aircraft Production, Trade, as well as Transport, Food, and the defence departments. By 1942 the system had been perfected. Overlaps such as had bedevilled 30 Britain in Search of Balance, 1940-61 Bevin's relations with Beaverbrook in 1940-41 had almost ceased to exist. Sponsors now acted as channels for government instructions (mediated, normally, as 'requests') and filters for demands on government. If the original models had been the cosy arrangements prevalent in late 1930s agriculture, or aircraft production, practice, in wartime, had to be attuned to the priorities of scarcity.

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