State capitalism, just as the Socialist Party predicted all those years ago, has been a pathetic failure as far as workers’ interests are concerned. Now private capitalism has returned to the mining industry
At midnight on 30 December British Coal’s 15 remaining deep mines in England passed into the ownership of RJB Mining, a privately-owned company with shares traded on the Stock Exchange.
The government had prepared the way for this change-back to private ownership by crushing the NUM, closing down all unprofitable pits (and not a few not-profitable-enough ones too), and watering down the safety regulations in this notoriously dangerous industry. Now RJB Mining hopes to be able to make sufficient profits by exploiting the remaining 8,000 or so miners to be able to pay a dividend to its shareholders and pay off with interest those who loaned them money to buy what was left of the industry.
Considering that for years the nationalisation of the coal mines had been top of the list of the miners’ union's demands the actual moment of denationalisation passed off without any fuss. There were no strikes, no sit-ins and no demonstrations.
When the mines were nationalised — forty-eight years previously, on 1 January' 1947 — it was a different story. Then the miners did celebrate the ejection of the private owners, a particularly vicious and vindictive lot who had been responsible for grinding them into the dust after the failure of the 1926 General Strike. A notice was stuck up outside every pit in Britain proclaiming “This colliery' is now managed by the National Coal Board on behalf of the people”.
British capitalist class
This wasn’t true of course, as the miners were soon to find out. The Coal Board’s job was to manage the pits on behalf of the British capitalist class as a whole. At first this meant producing as much cheap coal as possible for the rest of British industry. Later this meant producing cheap coal for profit in competition with other fuels like oil. At no time did it mean production to meet people’s needs. Not one lump of coal was ever produced to be given to a pensioner to stop them dying of hypothermia. As many thousands did throughout the period of nationalisation.
Working conditions did improve somewhat, but wages remained a bone of contention. How could they not, since the more the miners obtained in wages the less of what they produced remained as profit? A profit that was needed to pay compensation with interest to the former owners as well as to invest in new machinery and equipment.
The whole period of nationalisation was marked by conflicts over wages — from the illegal strike at Grimethorpe in 1947, through countless local disputes, to the successful national strikes of 1972 and 1974, to the heroic but doomed year-long national strike which ended in failure ten years ago this month.
State capitalism
Ironically, it was the Coal Board and not the NUM that first recognised that nationalisation had nothing to do with socialism. In 1968 Lord Robens, a minister in the Labour government that had nationalised the mines who was appointed NCB chairmanin 1961, told a NUM weekend school:
"I do not believe that in 1945 those of us who were nationalising these industries would have done it with so much enthusiasm if someone had told us then that they were going to turn into state capitalism ” (Times, 1 April 1968).
Someone did tell them We did. This is what we wrote in our 1945 pamphlet Nationalisation or Socialism ?:
“Only when industry and transport, etc, are owned and democratically controlled by the whole community can service to the whole community be a reality. Nationalisation or State Capitalism is not the solution of the problem. ”
It took the leaders of the miners' union ten years longer than Robens to realise the truth. It was not until his retirement in 1976 that Dai Francis, the Secretary of the South Wales Area of the NUM. was prepared to admit that "there was no difference between the old . . . coal owners and the National Coal Board. They were now turning it into state capitalism ” (quoted in H. Francis and D. Smith The Fed). Former NUM General Secretary Will Paynter hit the nail even more squarely on the head when, surveying three decades of nationalisation, he noted that “progress from private enterprise capitalism to state capitalism does not change the fundamental status of workers in society ” (The Miner, November-December 1977).
No doubt this explains the lack of reaction by the remaining miners to the return of the coal industry' to private ownership. They had learned by bitter experience that state capitalism was no better, if no worse, than private capitalism, so that a change from the one to the other wasn't worth getting worked up over.
Profitable basis
Socialism does indeed involve the management of industries "on behalf of the people”. But this was not what nationalisation did do, nor, as we pointed out in 1945, what it was able to do. Nationalisation represented the purchase by the state of an industry from its previous owners and the appointment by the state of a board to run it on a profitable basis with the workers remaining excluded and exploited wage and salary' earners.
Privatisation, on the other hand, represents the resale of an industry to private capitalists for them to run for their own private profit instead of it being run by a state board for the benefit of the capitalist class as a whole. As far as the workers are concerned, it makes no fundamental difference.
For industries to be run as a public service in the interest of all, they must first all be taken into common ownership at the same time, and without any compensation being paid to the previous owners, and they must be made subject to the democratic control both of those working in them and of the community in general. Such genuine common ownership is something quite different from nationalisation, or state ownership.
Production for profit will come to an end and there will be no exploitation, no property incomes either in the form of dividends or of interest on compensation or other government bonds, and no wages system. Instead, people will be able to cooperate to produce what is needed on the basis of the principle “from each according to their abilities, to each according to their needs".
This is what socialism is and it hasn’t yet been tried. It is high time that it was.
Adam Buick