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Industrial Organisation and Development Act 1947

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progress could have been reported on what had been done in industry along those lines. The position today is that unfortunately, apart from the cotton industry, little seems to have been achieved. In fact, we have had great and responsible organisations like the TUC criticising the Government for the delay in implementing the Act and bringing in development councils.
225:(TUC), plans for a Hosiery Development Board came to nothing. Wilson explained: "The employers in this industry are opposed to the establishment of a statutory Development Council. My aim has been to proceed in this matter as far as possible by agreement and I have not given up hope of doing so." But a Hosiery Board was not established. 255:
Under Churchill's new Conservative government, elected in 1951, two of the development boards were quickly abolished. These were the Clothing Industry Development Council, abolished in 1952, and the Jewellery and Silverware Council in 1953. Both Boards had run into disagreements between their members
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Davies went on to explain that employers seemed to fear nationalisation or interference, and the equal representation from unions on the councils, adding that resisting modernisation was unreasonable. He particularly lamented the lack of progress in the pottery industry which he had been championing.
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Clearly, the Act was not used extensively to reorganise British industry as originally envisaged. The Act proved controversial at first, as it was seen as an attempt to increase government control of industry, union influence and perhaps pave the way for nationalisation. Only four development boards
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Other than agriculture, levies were still being raised on the wool textile industries to promote exports in the first decade of the 21st century. They were paid to the National Wool Textile Export Corporation. However, in 2007, a consultation was run to remove this levy and a Statutory Instrument to
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Levies to support other industry projects, mainly in research, found more support under the Wilson government of the 1960s. An Apple and Pear Development Council was created in 1966. In 1967, iron casting research funding was obtained through the Act followed by support for hosiery research in 1969.
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War-time experience showed that it was well worth while to appoint a special committee—a joint production committee—to concentrate on production problems. The form which regular consultation should take must vary from industry to industry; what is wanted is the initiative to agree upon the machinery
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in 1945, the then Labour Government had a double industrial programme; for certain industries, nationalisation; for others, development councils. In the light of history I think it will be judged that the Industrial Organisation Act, 1947, has failed, not because of any defect in the conception but
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An Act to provide for the establishment of development councils to exercise functions for improving or developing the service rendered to the community by industries and for other purposes in relation thereto, for making funds available for certain purposes in relation to industries for which there
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The Cotton Board, unlike other boards, had received support from its industry. It was used to help reorganise the industry in the late 1950s. Large scale government investment particularly to replace old equipment was facilitated by the Board, but a combination of a credit squeeze, cheaper imports
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In respect of furniture, pottery, mining, china clay, hosiery and cotton we were given an indication that the Government took the view that there might be set up with some useful results, development councils which would have some limited statutory power, and we had hoped that by this time greater
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made plans for post-war industry boards that would report to an Industrial Commission, each with significant powers. The boards would be "responsible for a range of closely inter-related projects ... all concerned with various aspects of industrial efficiency in the widest sense – re-equipment,
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Employers' objections to development councils are attributed partly to a dislike of outsiders—or even union officials—having a say in the management of their industry, but perhaps more to anxiety lest the development council should prove, in spite of all assurances, to be a half-way house to
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Later, limited schemes to raise levies under the Act for research or marketing gained the support of specific industries, particularly in the agricultural sector. The use of levies to support this work continues, although no statutory organisation uses the powers of the Act today.
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for the cotton industry, had an international reputation in their fields, and very talented scientists developed their careers there. However, similar research institutes developed in other industries through a combination of direct funding and voluntary arrangements, such as the
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is no development council, for the disposal of any surplus of funds levied under emergency provision for encouragement of exports, for the making of grants to bodies established for the improvement of design, and for purposes connected therewith and consequential thereon.
176:, who warned in that the establishment of development councils could not be delayed much longer "without harming the immediate future and long-term prospects of industry" The TUC, in the face of the need to increase domestic exports and production, believed that: 373: 305:
for a horticultural development council, which was established in 1986. A Potato Industry Development Council (1997), Scottish Seed Potato Development Council (1981–1997) and Milk Development Council (1994) were all established under the Act.
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were funded under the Act until 2008, when they were merged with the Home-Grown Cereals Authority and Meat and Livestock Commission. They operate as separate bodies, levy-funded by their industries, but are administered under the
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However, suggestions for other development boards proved controversial, particularly among employers, while trades unions were more enthusiastic, pushing for a development board to be set up for the pottery industry, for example.
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The Cotton Board was abolished in 1972, after completing a major report into the future of the industry. Many of its recommendations, particularly the use of tariffs to limit imports rather than quotas, had been accepted.
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In the event, the Act made the relations of the industrial concerns to the boards largely voluntary, excepting powers to oblige them to register with the Boards and pay levies to pay for the boards' activities. Historian
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The cutlery industry requested a specific research levy in 1960 and were granted it in 1962. Horticulturers requested support along these lines as well, as a replacement for the Horticultural Marketing Council.
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Given that the British industrial system was deeply, doggedly resistant to reform, and no parts more so than those most hidebound and therefore in need of reform, such agreement and co-operation proved hard to
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were created under the 1945–51 Labour government. Of the major industries, only cotton saw a powerful Board created from the Act that went on to play a strategic role in helping change its industry.
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CAB 134/647 PC(50)72, 5 July 1950 Development Councils under the Industrial Organisation and Development Act 1947; quoted in The Lost Victory, Corelli Barnett. Macmillan, 1995
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On the other hand, the Act provided a useful mechanism to find funding for marketing and research. Establishments such as Wool Industries Research Institute, or the
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Further industry requests for levy schemes to support agriculture came during the Conservative governments of the 1980s and 1990s, for instance from the
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An order was made to create the Lace Research Association in 1948 and help for export promotion a little later with both activities funded by levies.
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From a Conservative point of view, the Act was a failure because of mistrust of the intentions of the administration. Aubrey Jones MP said in 1952:
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Unlike the first wave of Industrial Boards, the responsibilities of these bodies were generally more limited and industry support clearer.
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Dissatisfaction with slow progress included an adjournment debate in 1948, where Labour backbencher Mr. A. Edward Davies MP stated that:
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For Davies and the TUC, therefore, development councils were expected to be a key part of industrial planning and modernisation.
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for co-ordinated action, particularly in research, marketing and industrial re-organisation. These Boards were to report to the
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Slow progress in setting up the Development Councils caused frustration among trades unions, and particularly the
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Hosiery and Knitwear Industry (Scientific Research Levy) Order, 1969 HC Deb 27 June 1969 vol 785 cc1891-917
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re-organisation, development of new ideas ..." and granted powers of compulsory purchase as a last resort.
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Scottish Seed Potato Development Council (Dissolution) Order 1997 HL Deb 8 July 1997 vol 581 cc593-6
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because people feared that the development council was the thin end of the wedge of nationalisation.
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Pottery Industry (Development Council) Adjournement debate HC Deb 14 September 1948 vol 456 cc33-56
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Iron Casting Industry (Scientific Research Levy) Order 1967 HL Deb 19 June 1967 vol 283 cc1171-4
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CAB 87/10, R(45)8, 5 February 1945; quoted in The Lost Victory, Corelli Barnett. Macmillan, 1995
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Scottish Seed Potato Development Council Order 1981 HL Deb 24 November 1981 vol 425 cc707-13
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Clothing Industry Development Council (dissolution) HC Deb 1 December 1952 vol 508 cc123-4W
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Potato Industry Development Council Order 1997 HL Deb 3 February 1997 vol 577 cc1462-70
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Jewellery and Silverware Council (Dissolution) HC Deb 11 December 1952 vol 509 cc87-8W
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Consultation in industry, TUC impatience at delays, The Times, 14 October 1947, page 4
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Industrial Organisation and Development Act 1947, full text including later amendments
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Horticultural Development Council Order 1986 HL Deb 26 June 1986 vol 477 cc470-6
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Pottery Industry (Development Council) HC Deb 14 September 1948 vol 456 cc33-56
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led to a crisis of confidence. The re-organisation was not wholly successful.
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as in force today (including any amendments) within the United Kingdom, from
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Milk Development Council Order 1994 HL Deb 13 December 1994 vol 559 cc1265-9
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Only four boards were created in first wave. These included bodies for the
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Early Industrial Development Boards and associations created under the Act
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Section 17, The Agriculture and Horticulture Development Board Order 2008
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Development Councils: little achieved, The Times, 19 July 1948, page 6
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Employers, however, were suspicious of the proposed new arrangements:
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Cutlery Industry (Research Levy) HC Deb 25 October 1960 vol 627 c260W
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Horticultural Development Council Annual Report and Accounts 2007-08
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Lace Industry (Levy) Order) HL Deb 16 December 1948 vol 159 cc1141-4
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with powers to raise levies from specific industrial sectors in the
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Industrial Organisation and Development Act 1947 Account 2004-2005
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Wool Industry (Research levy) HC Deb 24 July 1952 vol 504 cc901-20
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The Milk Development Council annual report and accounts 2007/2008
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Iron and Steel Bill, HC Deb 27 November 1952 vol 508 cc643-754
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Text of the Industrial Organisation and Development Act 1947
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Apple and Pear Development Council (Amendment) Order 1970
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Agriculture Bill HC Deb 25 November 1985 vol 87 cc614-98
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The Lost Victory, Corelli Barnett. Macmillan, 1995, p206
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Development Councils, HC Deb 26 July 1949 vol 467 c109W
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Jewellery and Silverware Council (Dissolution) Order
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House of Commons debates, 10 November 2008, 9:49 pm
278: 320:Natural Environment and Rural Communities Act 2006 221:Despite pressure from Labour backbenchers and the 763: 107:Industrial Organisation and Development Act 1947 22:Industrial Organisation and Development Act 1947 497: 495: 324:Agriculture and Horticulture Development Board 203:, furniture and jewellery and silverware. The 354:British Rubber Producers Research Association 129:and employers alongside independent experts. 777:Science and technology in the United Kingdom 492: 423: 421: 309:The Horticultural Development Council, the 251:The Act under Conservative administration 207:was established in 1950 which funded the 418: 291: 772:United Kingdom Acts of Parliament 1947 764: 689:British Potato Council Accounts 2007-8 167: 132: 86:Text of statute as originally enacted 329: 209:Wool Industries Research Association 297:Agricultural research and marketing 259: 125:and have equal representation from 13: 367: 358:British Rayon Research Association 14: 788: 113:. c. 40) enabled the creation of 279:New uses of the Act in the 1960s 39:Parliament of the United Kingdom 32: 747: 715: 704: 693: 682: 671: 660: 649: 638: 627: 616: 605: 594: 583: 572: 561: 550: 539: 528: 517: 506: 485:Parliamentary Debates (Hansard) 472: 461: 450: 439: 430: 409: 400: 391: 335:revoke it was passed in 2008. 1: 384: 338: 266:Cotton Board (United Kingdom) 205:Wool Textile Research Council 115:industrial development boards 181:and the will to make it work 7: 10: 793: 263: 18:United Kingdom legislation 91: 84: 74: 69: 56: 45: 31: 26: 311:Milk Development Council 322:as a single body: the 315:British Potato Council 303:National Farmers Union 256:about how to proceed. 248: 235: 192: 183: 165: 292:Later uses of the Act 243: 230: 223:Trades Union Congress 187: 178: 174:Trades Union Congress 160: 168:Initial controversy 23: 488:. 7 December 1953. 133:Origins of the Act 111:10 & 11 Geo. 6 97:legislation.gov.uk 63:10 & 11 Geo. 6 21: 349:Shirley Institute 330:Wool and textiles 103: 102: 27:Act of Parliament 784: 756: 751: 745: 744: 742: 740: 735:on 11 March 2012 734: 728:. Archived from 727: 719: 713: 708: 702: 697: 691: 686: 680: 675: 669: 664: 658: 653: 647: 642: 636: 631: 625: 620: 614: 609: 603: 598: 592: 587: 581: 576: 570: 565: 559: 554: 548: 543: 537: 532: 526: 521: 515: 510: 504: 499: 490: 489: 476: 470: 465: 459: 454: 448: 443: 437: 434: 428: 425: 416: 413: 407: 404: 398: 395: 260:The Cotton Board 139:Second World War 36: 35: 24: 20: 792: 791: 787: 786: 785: 783: 782: 781: 762: 761: 760: 759: 752: 748: 738: 736: 732: 725: 721: 720: 716: 709: 705: 698: 694: 687: 683: 676: 672: 665: 661: 654: 650: 643: 639: 632: 628: 621: 617: 610: 606: 599: 595: 588: 584: 577: 573: 566: 562: 555: 551: 544: 540: 533: 529: 522: 518: 511: 507: 500: 493: 478: 477: 473: 466: 462: 455: 451: 444: 440: 435: 431: 426: 419: 414: 410: 405: 401: 396: 392: 387: 370: 368:Further reading 341: 332: 299: 294: 281: 268: 262: 253: 201:cotton industry 197: 190:nationalization 170: 152:Corelli Barnett 135: 41: 33: 19: 12: 11: 5: 790: 780: 779: 774: 758: 757: 746: 714: 703: 692: 681: 670: 659: 648: 637: 626: 615: 604: 593: 582: 571: 560: 549: 538: 527: 516: 505: 491: 471: 460: 449: 438: 429: 417: 408: 399: 389: 388: 386: 383: 382: 381: 376: 369: 366: 340: 337: 331: 328: 298: 295: 293: 290: 280: 277: 264:Main article: 261: 258: 252: 249: 196: 193: 169: 166: 143:Board of Trade 134: 131: 123:Board of Trade 119:United Kingdom 101: 100: 89: 88: 82: 81: 78: 72: 71: 67: 66: 60: 54: 53: 49: 43: 42: 37: 29: 28: 17: 9: 6: 4: 3: 2: 789: 778: 775: 773: 770: 769: 767: 755: 750: 731: 724: 718: 712: 707: 701: 696: 690: 685: 679: 674: 668: 663: 657: 652: 646: 641: 635: 630: 624: 619: 613: 608: 602: 597: 591: 586: 580: 575: 569: 564: 558: 553: 547: 542: 536: 531: 525: 520: 514: 509: 503: 498: 496: 487: 486: 481: 475: 469: 464: 458: 453: 447: 442: 433: 424: 422: 412: 403: 394: 390: 380: 377: 375: 372: 371: 365: 361: 359: 355: 350: 345: 336: 327: 325: 321: 316: 312: 307: 304: 289: 285: 276: 272: 267: 257: 247: 242: 239: 234: 229: 226: 224: 219: 215: 212: 210: 206: 202: 191: 186: 182: 177: 175: 164: 159: 157: 156:Harold Wilson 153: 147: 144: 140: 130: 128: 127:trades unions 124: 120: 116: 112: 108: 98: 94: 90: 87: 83: 79: 77: 73: 68: 64: 61: 59: 55: 50: 48: 44: 40: 30: 25: 16: 749: 737:. Retrieved 730:the original 717: 706: 695: 684: 673: 662: 651: 640: 629: 618: 607: 596: 585: 574: 563: 552: 541: 530: 519: 508: 483: 474: 463: 452: 441: 432: 411: 402: 393: 362: 346: 342: 333: 308: 300: 286: 282: 273: 269: 254: 244: 240: 236: 231: 227: 220: 216: 213: 198: 188: 184: 179: 171: 161: 148: 136: 114: 106: 104: 80:31 July 1947 76:Royal assent 15: 137:During the 766:Categories 739:15 January 385:References 339:Conclusion 47:Long title 58:Citation 154:quotes 65:. c. 40 313:, and 733:(PDF) 726:(PDF) 163:find. 70:Dates 741:2011 141:the 105:The 356:or 768:: 494:^ 482:. 420:^ 360:. 326:. 211:. 743:. 109:( 99:.

Index

Parliament of the United Kingdom
Long title
Citation
10 & 11 Geo. 6
Royal assent
Text of statute as originally enacted
Text of the Industrial Organisation and Development Act 1947
legislation.gov.uk
10 & 11 Geo. 6
United Kingdom
Board of Trade
trades unions
Second World War
Board of Trade
Corelli Barnett
Harold Wilson
Trades Union Congress
cotton industry
Wool Textile Research Council
Wool Industries Research Association
Trades Union Congress
Cotton Board (United Kingdom)
National Farmers Union
Milk Development Council
British Potato Council
Natural Environment and Rural Communities Act 2006
Agriculture and Horticulture Development Board
Shirley Institute
British Rubber Producers Research Association
British Rayon Research Association

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