ABSTRACT
There is nothing new about consultation as a means of economic control. A common delusion about the nineteenth century is that, since there was then in Britain a prejudice against direction and more particularly State direction, the economic system was abandoned to the sole and by no means tender mercies of competition. In actual fact consultation, formal and still more informal, played a very great part. Consultation has also become widespread and has proved its value at higher levels. As the limitations of State direction became apparent, the Government has made more and more use of 'voluntarism' as a means of maintaining control in areas where competition also breaks down. Voluntarism in this case centres round two institutions. A combination of voluntarism as a tool of the Government and of the technique of the Iron and Steel Federation is found in the Development Councils set up under the Industrial Organisation and Development Act of 1947.
