Cable and Wire Bounty Act 1941

Conditions manufacturers must meet to get paid

• Production must occur in a government-approved factory (premises formally appointed by the Minister)
• The cable and wire must be of good and merchantable quality
• Manufacturers must pay workers fair wages and conditions at least equal to any relevant award or industrial agreement — and must certify this when claiming
• Manufacturers must keep detailed separate accounts covering costs, capital, sales and profits, and provide audited financial statements to the government
• The business must be open to inspection by authorised officials at any time
• Manufacturers must answer questions and produce records if required, even if the answers might be self-incriminating (though those answers can't be used against them in other legal proceedings)

Profit cap — the government takes back "excess" profit

One of the more unusual features: if a manufacturer's net profit exceeds 8% per year on capital employed, the Minister can:

• Withhold bounty payments, or
• Claw back bounty already paid

The government can also look through related entities (subsidiaries or affiliated distributors) when calculating profits, to prevent profit-shifting. Income tax is not deducted when calculating profit for this purpose.

Transparency and accountability

• A public report must be tabled in Parliament by 31 August 1942 listing every manufacturer who received a bounty, how much they got, and details of the copper wire used
• Penalties apply for fraud, false statements, or refusing to cooperate with inspectors (up to £500 or 12 months' imprisonment for serious offences)

Why does it matter?

This is a wartime industrial support measure. Rubber-insulated electrical cable was essential for military and civilian infrastructure during World War II. By subsidising local production, the Act aimed to reduce reliance on imports at a time when supply chains were severely disrupted. The profit cap and wage conditions reflect the era's concern that manufacturers should not exploit wartime subsidies for excessive gain at workers' or taxpayers' expense.