BASIC PRICE.

Auckland Star, Volume LXVII, Issue 175, 25 July 1936, Page 12

BASIC PRICE.

NO PROFITEERING.

GOODS AND SERVICES

BILL BEFORE PARLIAMENT. JUDICIAL TRIBUNALS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Friday. The Prevention of Profiteering Bill was introduced by Governor-General's Message in the House of Representatives to-day. The measure defines a basic price and makes it an. offence for anyone to exceed that price by an unreasonable amount. It provides for the establishment of judicial tribunals, the duty of which will be to determine whether any increase above the basic price is unreasonable. The bill covers goods and services, and "sale" includes barter and every other disposition of goods for valuable consideration.

The offence of profiteering is committed by anyone who eitlifcr as principal or agent sells or supplies or offers for sale or supply goods at a price that exceeds the basic price by an unreasonable amount. Basic price is to be the lower of the following prices:—-

(a) The current price at which on June 1, 1936, goods of the same nature and quality were saleable in the same locality if sold in the same quantity and on the same terms as to payment and delivery, or (b) The actual price at which the good 3 were sold or offered for sale under the same conditions.

These provisions, with the necessary modifications, are to apply to rates charged for services other than those in respect to which there was a contract between master and servant. Fines Up To £200 And £1000. The penalty for profiteering is a fine not exceeding £200 or three months' imprisonment in the- case of an individual or a fine not exceeding £1000 in the case of a company or other corporation.

There is a provision for the establishment of special tribunals to determine cases arising'' under the legislation. These are to be known as judicial tribunals for the prevention of profiteering. The tribunal is to consist of a stipendiary magistrate, who in addition to his ordinary salary will be entitled to receive extra salary or allowance as might be approved by the Governor-Geiieral-in-Coimcil.

Proceedings for an offence under the Act are to be commenced by information in accordance with the Justices of the Peace Act, 1927, laid by an officer of the Department of Industries and Commerce, acting by direction of the Minister of Industries and Commerce. Solicitors May Appear. The proceedings are to be determined by a magistrate alone, and in any proceedings the informant may appear personally or by a solicitor or .by any other person appointed by the Minister. A prosecution may bo instituted at any time within three years after the commission of an offence.

In proceedings under the Act the magistrate will have all the powers that he would have if he were exercising his civil jurisdiction as a magistrate under the Magistrates Courts Act, 1928, and is empowered to order the production of books or other documents or to order an inspection to be made of them. Such information is to be treated as confidential. The publication of evidence may be prohibited if its publication would be unduly detrimental to the defendant. Method of Determination. In determining whether any increase above the basic price has been unreasonable the magistrate is to take into account the following special .matters: — (a) The extent by which the expenses of the defendant have, since June 1, 1930, been increased by the operation of any amendment of the law relating to the rates of remuneration of any workers, or to the working hours of any workers; and (b) The extent, if any, by which the business of the defendant has been, or is likely ,to be, increased by reason of an increased demand for the goods sold or services performed due to increased purchasing power. The decision of the magistrate is to be final. Regulations by Order-in-Council may be made under the Act.