"EXPERIMENTAL."

Auckland Star, Volume LXVII, Issue 173, 23 July 1936, Page 5

"EXPERIMENTAL."

NEW LEGISLATION. DRASTIC CHANGES MADE. « GRAVE POSSIBILITIES." (By Telegraph.— Own Correspondent.) WELLINGTON, this day. "The outstanding happening during the past year is the change of Government and in Government policy, .'and it would appear that there can be no question but that the application of the policy of the new Government will create drastic changes in industry generally within New Zealand, and more particularly with our primary producing export industries, which, under existing political and industrial conditions, will probably need a substantial measure of subsidisation in some form if production for export is to be successfully continued." So said Mr. H. D. Aclaiul (Canterbury) in his presidential address at the annual meeting of the New Zealand Sheepowners and Farmers Federation yesterday.

"The arrangements now being made by the Government with respect to dairy products," said Mr. Acland, "lead us to surmise that similar guarantees are to lie given to other primary produce exporters with a view to enabling them to meet the additional production costs within the Dominion caused by recent legislation, and sell on the world's markets against o\ erseas com petition, while still leaving a sufficient balance in hand on which to live, and provide an inducement to still further increase production for export.

"It will be agreed that we must at all times keep our organisation free to approach .the Government in the. interests of our members, quite it) espective of any party issue, if effective work is to be done, and that, as has been the case in the past, we should hold ourselves free to make representations and if necessary helpfully criticise legislation affecting our industry, without regard to the particular Government responsible for it. Delicate Position. The present position w-ould appear to be a delicate one as affecting both workers and employers generally, and fraught with the gravest possibilities, owing to the experimental nature of much of the legislation recently placed on the Statute Book. "I feel it to be essential, however, that our federation should remain in a position to assure the Government of our desire to accept in the best spirit the legislation already passed, and to endeavour to make it workable, if possible. We may give the Government this assurance without in any way forfeiting our right to regard much of it as experimental, and should occasion arise to express our doubts and misgivings as to the ultimate results of the application of many of the clauses - in the varous Acts. While I think we will all agree that tlie first charge on industry should be an adequate return to the employer and those who are assisting him by their labour to produce i goods, I would point out that where fixation of costs is attempted, it can I be successful in the long run only when | a return to the employer on a reason- | ablv profitable basis is assured.

"It is freely suggested that a shortening of working hours j and a raising of money, wages will increase spending power and add to the nation's wealth. Many politicians to-day appear to be obsessed on this point, and share with their officials the belief that the making of laws along these lines will result in higher standards of living, etc., whereas the truth is that there is no productive value whatever in such legislation as this, as nothing is created by it, and the consumer must pay from his own purse the salaries of the officials appointed to regulate, and in some cases restrict, his work. The consumer not only pays the official's salary, but also the cost of the particular regulation he is paid to enforce. Restriction of Liberties. "There appears to be grave danger that in their desire to improve general standards of living by collective action, Governments, both in New Zealand and elsewhere, in order to fully carry out their policy, may deem it necessary to impose such restrictions and inhibitions on trade and industry as to seriously affect the liberties of the individual citizen," continued Mr. Acland. "This possibility will require to be carefully guarded against if we in New Zealand are to retain that measure of individual freedom considered hitherto as the inalienable heritage of citizens of free and independent British countries.

"It has been suggested," continued Mr. Acland, "that exchange should be abolished to be replaced by some system of subsidy on exports, but I am afraid that if this were attempted it would be found that the cost to the Dominion would be quite beyond its capacity to pay, and would probably entail great hardship to our citizens.

"Producers for export gratefully appreciate the definite statement by the Government that it intends to give first consideration to the Mother Country with regard to trade agreements, placing Empire countries next in order. If this is done, I feel assured that-increas-ing mutual benefit will result to trade generally within the Empire.

"It has been realised for many years tliat all progress with regard to social conditions had advanced in the direction of getting away from status such as slavery, villeinage, serfdom and the like, to a system of free contract. The principle of fixation of costs through the Arbitration Court has been to reverse that and establish a system of status for all workers under the Act to the extent that it fixes a minimum rate of wages and hours of work below which such work cannot be allowed to be done.

"If Parliament subsidies New Zealand primary produce for export, there is very great danger of the British Government putting on a protective duty equivalent to the amount of the subsidy or more. This has already been advocated by the British farmers, and New Zealand has to avoid being accused of dumping subsidised goods on the British market."