[CHAMBER] 1929 Expropriation Act

[Smyg]

Desperate measures, desperate times.

1929 Expropriation Act

Whereas sudden issues in the world of international finance has caused immediate concern regarding the economic future of both domestic companies and industries within the Republic of the United States of Brazil and of foreign-owned companies and industries operating within Brazil,

Whereas the Republic of the United States of Brazil already has a long history of asset nationalisations, such as of several principal railways before the Great War among other examples,

Whereas state measures must be taken to prevent the shutdown of vital industries and utilities, and to maintain the national economy intact and vibrant as to support the survival of the people itself,

• Section 1. The Ministry of Agriculture, Industry and Commerce, the Ministry of Finance and the Ministry of Transportation and Public Works shall jointly and immediately form a national Expropriation Bureau, to manage the right of eminent domain in the event of an economic crisis following recent financial tremors.

• Section 2. The Expropriation Bureau shall launch an inquiry into the possibility of nationalising certain key sectors of the national economy and the national infrastructure, to prevent the collapse of networks and resources vital to the survival of the Republic of the United States of Brazil.

• Section 3. In the event of the bankruptcy or abandonment by the owners of any company within the Republic of the United States of Brazil, especially industrial factories and productive workshops vital to the survival of the Republic, the workers of said company shall have the right to form workplace committees and apply to the Expropriation Bureau for the company to become a empresa recuperada (recovered company) under the self-management and self-ownership of the workers, with the full assistance of the state and with oversight from the Bureau. The Bureau will evaluate their application. Should mismanagement be found to continue after the recovery has been implement, the Bureau shall evaluate whether the company should be improved via subsidies, closed down, or nationalised by the state. Recovered companies will be granted limited tax breaks and other incentives, to be determined by the Bureau, to promote their activity. Business owners who cooperate in the process by turning over documents and otherwise smoothing the transition will be compensated for the expropriation via ten-year government bonds. Otherwise, there shall be no compensation.

• Section 4. This bill will take effect immediately upon passage.

[Flamelord]

While we find ourselves in agreement with the first two clauses of this bill, we find ourselves a bit more hesitant upon the third. The formation of workers councils could be considered acceptable in the case of abandonment, there are already procedures in place for handling bankruptcies, and it would be easier for the Bureau to take up the issue when Bankruptcy is filed. They can then decide how to proceed, whether under new management, sale to other companies, or any other method they might find most efficient.

That is our main concern with this bill at this present tim, but otherwise we are in favor of the other suggestions it brings.

[Smyg]

While we find ourselves in agreement with the first two clauses of this bill, we find ourselves a bit more hesitant upon the third. The formation of workers councils could be considered acceptable in the case of abandonment, there are already procedures in place for handling bankruptcies, and it would be easier for the Bureau to take up the issue when Bankruptcy is filed. They can then decide how to proceed, whether under new management, sale to other companies, or any other method they might find most efficient.

That is our main concern with this bill at this present tim, but otherwise we are in favor of the other suggestions it brings.

I certainly see your objection, sir, but perhaps it's a matter of phrasing. The intent was for making the workers applying to "recover" a company to be an option in the case of bankruptcy, not a necessity. Thus the Bureau could receive such applications once bankruptcy has been filed and process them alongside other alternatives, such as those which you mention. We should not confuse the terms workers' council and workplace committee --- the latter, used in this bill, should only be taken to mean a temporary organ which formulates and sends in an application.

[Flamelord]

Ah, thank you for the clarification. We are not opposed to that but​would recommend in this case that the relevant clause be amended to prevent further confusion outside of this body

[Smyg]

Ah, thank you for the clarification. We are not opposed to that but​would recommend in this case that the relevant clause be amended to prevent further confusion outside of this body

I'm not quite sure why you were confused, sir, with all due respect.

[Luc]

Sebastião do Rego Barros, President of the Chamber of Deputies

This is quite an important measure that, if enacted, would surely cause great deals of change to the country given the economic troubles at hand. Thus, I would encourage the members of this house to debate it.

[acecipher]

We do find ourselves in agreement with the spirit of this bill. It is of vital importance that economic activity remain forthcoming in the wake of financial collapse.

We would encourage the allowance of worker's unions to take over the labor and running of their industries rather than simply await rescue from government administrators or outside capital which would not have the years of wisdom needed to manage the business. We would encourage some language within the bill to allow for the former managers to join with the workers as equal partners in their revitalized ventures, to help avoid this, as the other parties that would have the knowledge of how to run these specialized businesses--their competitors--would simply result in the creation of oligarchs and monopolies, similar to those that caused much of the financial troubles in the United States prior to the intervention of the Progressives there.

[Smyg]

We ask, given the prolonged period of debate, that voting be opened.

[Luc]

Sebastião do Rego Barros, President of the Chamber of Deputies

We will accept the motion introduced by the delegates of the Communist Party and move this bill into voting.

[acecipher]

The Social Democratic Party will vote Yes (27).

[Smyg]

The PCB (4) votes yes.

There is nothing coercive or revolutionary about all this. It is crisis management, and needs to happen.

[Flamelord]

After careful consideration the Federal Union Party (93) will vote No on this bill. We believe the mechanisms currently in place are adquate to cope with this crisis.

[Luc]

The Democratic Party (42) votes AGAINST this bill.

The Liberator Party (15) votes AGAINST this bill.

The Socialist Revolutionary Party (3) votes IN FAVOUR of this bill.

[Snacks]

The BLOC (2) votes FOR this bill.

[Flaming Bolshevik]

The AIB (3) votes no.