Essential Commodities Reserves Act 1938
From Wikipedia, the free encyclopedia
| Act of Parliament | |
 | |
| Long title | An Act to enable the Board of Trade to obtain information as to commodities which in the opinion of the Board would be essential for the vital needs of the community in the event of war and to make provision for the maintenance of reserves of such commodities; and for purposes connected with the matters aforesaid. |
|---|---|
| Citation | 1 & 2 Geo. 6. c. 51 |
| Dates | |
| Royal assent | 29 July 1938 |
| Other legislation | |
| Amended by | Industrial Expansion Act 1968 |
| Relates to | |
Status: Amended | |
| Text of statute as originally enacted | |
| Text of the Essential Commodities Reserves Act 1938 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. | |
The Essential Commodities Reserves Act 1938 (1 & 2 Geo. 6. c. 51) is an Act of the Parliament of the United Kingdom. It was passed in anticipation of the Second World War and allowed the Board of Trade to build up stockpiles of commodities considered to be essential, specifically foodstuffs, animal feed, fertiliser and petroleum products as well as the raw resources needed to manufacture these products. They paid traders at least £13.5 million to stockpile materials in the following year and a half. The act was largely superseded by the Emergency Powers (Defence) Act 1939 and the establishment, in the same year, of the Ministry of Supply. The stockpiles and associated funding were wound up by 1947 and the act has not been made use of since. It was proposed for repeal by the Law Commission in 2015.
In 1938 there were concerns over a possible European war. The Essential Commodities Reserves Act was passed by the first Chamberlain ministry to allow the British government to build up reserves of goods that it considered essential in case of war.[1] It received royal assent on 29 July 1938.[2]
The act empowered the Board of Trade (BoT) to transport and store certain commodities determined as essential.[3] The products were specified by the BoT but limited to categories of products listed by a schedule in the act. This included foodstuffs, animal feed, fertiliser (and the raw materials required to manufacture any of the preceding) and all petroleum products.[2] The BoT was empowered to obtain information from traders as to their current stock level of these materials and their capacity to store them.[4] Traders making late returns could be fined fifty pounds for each day they were late. Those making false returns could be fined £100 and/or imprisoned for three months.[2]
The act authorised the BoT to order traders to increase their stockpiles of any specified material.[2] This was to be funded by payments from the "Essential Commodities Reserves Fund" established with funds authorised by Parliament.[3] The BoT could also draw from the Consolidated Fund, provided it later repaid the funds from the Essential Commodities Reserves Fund.[2]
