Distribution of Industry Act 1945
Encyclopedia
The Distribution of Industry Act 1945 (8 & 9 Geo. VI c. 36) was an Act of Parliament
in the United Kingdom
intended to help redevelop areas, such as south-western Scotland, which depended heavily on specific heavy industries, and which had been hard-hit by unemployment in the inter-war period.
The Act gave the government two main powers, namely:
This plan, mostly prepared by Hugh Dalton
, the President of the Board of Trade, was contentious; it was felt by many to be encouraging a planned economy
. John Sydney Wardlaw-Milne, a Conservative MP, described it in debate as "the very antithesis of private enterprise ... bureaucracy and Socialism carried to the last limit".
In Scotland, projects in the main Scottish Development Area in the central belt
created 60,000 jobs by the beginning of 1950, with 15,000 elsewhere in the country; this was expected to rise to 120,000 once planned projects had been completed. Unemployment in the region stood at 41,000 (3½%), compared to 115,000 (12%) before the War. Outside the main development area, major projects included a new industrial estate in Dundee, diversifying local industry away from a dependence on jute
, and the Inverness area becoming a scheduled area in 1948, to develop industry in tandem with a new hydro-electric power scheme.
In Wales, most of the industrial areas in South Wales
were scheduled as a development area, along with the Wrexham
region in the north. 264 installations had been built by May 1950, with 81 under construction and 104 approved; more than half of the factories completed had been Government-funded. Twenty-six of the factories built or planned were intended to provide special employment for those disabled through mining work.
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
intended to help redevelop areas, such as south-western Scotland, which depended heavily on specific heavy industries, and which had been hard-hit by unemployment in the inter-war period.
The Act gave the government two main powers, namely:
- To schedule "development areas" where the Government was able to build factories for rental to private enterprise, and to manage industrial estates itself
- To require that the site for any factory above a certain size should be decided on by discussion between the firm proposing to build it and the Board of TradeBoard of TradeThe Board of Trade is a committee of the Privy Council of the United Kingdom, originating as a committee of inquiry in the 17th century and evolving gradually into a government department with a diverse range of functions...
.
This plan, mostly prepared by Hugh Dalton
Hugh Dalton
Edward Hugh John Neale Dalton, Baron Dalton PC was a British Labour Party politician who served as Chancellor of the Exchequer from 1945 to 1947, when he was implicated in a political scandal involving budget leaks....
, the President of the Board of Trade, was contentious; it was felt by many to be encouraging a planned economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
. John Sydney Wardlaw-Milne, a Conservative MP, described it in debate as "the very antithesis of private enterprise ... bureaucracy and Socialism carried to the last limit".
Effects
From June 1945 to January 1950, some 481 government-built and 505 private-built installations (factories, factory extensions, etc.) were built in development areas under the Act, creating an estimated 200,000 jobs (40% of which were taken by women); unemployment in depressed areas fell from 550,000 before the War (July 1938) to under 100,000 in July 1950. A further 279 installations were under construction, with 356 approved but not yet under way; these were predominantly private projects.In Scotland, projects in the main Scottish Development Area in the central belt
Central Belt
The Central Belt of Scotland is a common term used to describe the area of highest population density within Scotland. Despite the name, it is not geographically central but is nevertheless situated at the 'waist' of Scotland on a conventional map and the term 'central' is used in many local...
created 60,000 jobs by the beginning of 1950, with 15,000 elsewhere in the country; this was expected to rise to 120,000 once planned projects had been completed. Unemployment in the region stood at 41,000 (3½%), compared to 115,000 (12%) before the War. Outside the main development area, major projects included a new industrial estate in Dundee, diversifying local industry away from a dependence on jute
Jute
Jute is a long, soft, shiny vegetable fibre that can be spun into coarse, strong threads. It is produced from plants in the genus Corchorus, which has been classified in the family Tiliaceae, or more recently in Malvaceae....
, and the Inverness area becoming a scheduled area in 1948, to develop industry in tandem with a new hydro-electric power scheme.
In Wales, most of the industrial areas in South Wales
South Wales
South Wales is an area of Wales bordered by England and the Bristol Channel to the east and south, and Mid Wales and West Wales to the north and west. The most densely populated region in the south-west of the United Kingdom, it is home to around 2.1 million people and includes the capital city of...
were scheduled as a development area, along with the Wrexham
Wrexham
Wrexham is a town in Wales. It is the administrative centre of the wider Wrexham County Borough, and the largest town in North Wales, located in the east of the region. It is situated between the Welsh mountains and the lower Dee Valley close to the border with Cheshire, England...
region in the north. 264 installations had been built by May 1950, with 81 under construction and 104 approved; more than half of the factories completed had been Government-funded. Twenty-six of the factories built or planned were intended to provide special employment for those disabled through mining work.