SECTIONAL TRANSACTIONS.— F. 383 



Mr. A. D. K. Owen. — The social consequences of industrial trans- 

 ference (11.30). 



Industrial transference has important social consequences for (a) the 

 community from which the transference takes place ; (b) the community 

 to which the transference takes place ; and (c) the nation as a whole. 



(a) For the community from which transference takes place the most 

 obvious consequence is either a diminution in the rate of population growth 

 or an actual fall in population. Transferees are for the most part single 

 young men and women and comparatively young married men and their 

 families, and their loss results in a cumulative ageing of the population. 

 Examples from South Wales and Durham of the prospective effects of 

 industrial transference on age structure. As transference is voluntary, there 

 is also a selective process at work which tends to lower the average quality 

 of the population. With some important exceptions, the more active and 

 adventurous leave and the more conservative and unenterprising stay. 



The proximate effect of transference is to reduce unemployment in areas 

 from which it takes place, but the ultimate effect may very well be different. 

 A distinction must be made between the effects of transferring unskilled 

 workers and the effects of transferring skilled or potentially skilled workers. 

 The denudation of an area of skilled labour impedes the development of 

 new industries and may, in time, depress existing industries still further. 

 In any case, transference presses hardly on secondary local industries by 

 reducing aggregate purchasing power. 



Local Government finance benefits from reduced pressure on the social 

 services, especially public assistance, but many of the economies resulting 

 from falling population are only slowly realised. Meanwhile there may be 

 a heavy loss of rate income. 



There are also losses in institutional life. Trade unions, churches, 

 co-operative societies and other voluntary associations suffer the loss not 

 only of financial support and membership, but of active leaders. 



(b) For the community to which transference takes place there is a gain 

 in population and an increased labour supply, largely free from trade union 

 regulation, which provides the basis for industrial expansion. 



Local Government has to provide additional social capital equipment in 

 the form of houses, roads, schools, clinics and so on, but it receives an 

 additional rate income as the number and value of its rateable properties 

 increase. 



There are, however, certain difficulties of assimilation and often a good 

 deal of social friction as a result of the introduction of large numbers of new 

 workers and their families into new areas. 



(c) For the community as a whole, the greatest gain from industrial 

 transference is the salvaging of large numbers of workers from the deteriora- 

 tion which results from long-continued unemployment. There may also 

 be considerable economic gain as a result of the redistribution of labour 

 supply in relation to employment opportunities. On the other hand, there 

 is reason to believe that subsidised transference is artificially distorting the 

 industrial structure of the country by disguising real costs of production. 



It is also necessary to take into account the waste of social capital in the 

 areas from which migration takes place and the increased social expenditure 

 and disamenities of social life (such as road congestion, housing shortage, 

 loss of open spaces) in expanding areas. 



A new policy is urgently needed. Industrial transference should be 

 continued, but along different lines. It should be related to a broad plan 

 of national development in which both economic and social factors should 

 be taken into account. 



