WORK OF BUREAU OF INDUSTRY

Dominion, Volume 33, Issue 69, 14 December 1939, Page 11

WORK OF BUREAU OF INDUSTRY

Review By Minister

DEVELOPMENT OF NEW ENTERPRISES The work of the Bureau of Industry was reviewed by the Minister of Industries and Commerce, Mr. Sullivan,»in a broadcast address last night. The bureau, he said, had been functioning for the past three and a half years, and during that time it had made a valuable contribution to the economic welfare of the Dominion. It was concerned with whatever problems affected our industrial' life, and was continually striving to help New Zealand industries to be equal in organization and operation to the best there were in the more industrialized nations overseas.

“When the Labour Government assumed office at the end of 1935, it was apparent that some machinery was necessary to deal with numerous .industrial problems which were arising from the expansion of industrial activities which was following in the wake of our emergence from the depression,” said Mr. Sullivan. ‘lt was clear, too, that the constructive and expansionist policy which the present Government was then about to initiate would lead to a greatly increased measure of business activity. History had shown us that such periods ot rapid expansion had inevitably brought with them problems and difficulties which very often had seriously offset the benefits accruing from the expansion of business, and in some cases had even sown the seeds of a further depression.” Industrial Efficiency Act. Reference was made by Mr. Sullivan to the Industrial Efficiency Act, which became law in October, 1936. The Act, he said, represented at the time the most advanced industrial legislation of its kind, and embodied what appeared to be the-most desirable features of a mass of similar legislation throughout the world. Since the passing of the Act several inquiries had been received as to the nature aud the operation of the Act from the Governments of other countries contemplating similar legislation. Actually, however, though the introduction of the legislation into Parliament was marked by considerable controversy, the Dominion was really many years behind several of the more progressive countries of the world in the matter of industrial planning, including Britain itself. The wisdom of having such, legislation as the industrial Efficiency Act had been apparent on many occasions during the last year or two. New Zealand should be proud of the opportunities the State offered its industrial enterprises to become soundly and efficiently organized. Broadly speaking, the Act aimed to promote the economic welfare of New Zealand by facilitating the development "bf new industries in the most economic form, and by so regulating the operation and organization of industries that there would be a greater degree of efficiency in the industrial sphere. To achieve this general aim, the Bureau of Industry was established, and provision was made in the Act for the licensing and planning of industries by the Applications For Licensing. Mr. Sullivan said that so far there lias been some 30 industries licensed —an average of 10 a year. A considerable number of applications for licensing had been declined on the grounds that licensing would not serve the public interest nor promote the economic welfare of the Dominion. .While most of the industries licensed were purely manufacturing ones, there were a number of distributive or semidistributive industries subject to the administration of the Act. Some of the industries licensed were the manufacture of soap, radios, footwear, cement, batteries, cigarette papers, nails, electric ranges, rope and twine, and rennet. These were all manufacturing industries. On the other hand, there were industries such as flaxmilling, fishing, petrol reselllug, pharmacy and fish retailing which were subject to licensing. It bad been gratifying that a more general recognition of the facilities afforded to industry by the Act had become evident during recent months.

Licensing was not used to maintain monopoly conditions in industry or as was suggested to prevent men with capital, initiative and ability from commencing new units in industry. The decisions of the bureau, which were published regularly, showed that this was not correct. However, in some industries there was already a serious redundancy of units when the industries were licensed. Naturally in those cases it would be contrary to the public interest to permit many additional units, and consequently the bureau had not in a few cases granted licences for new units.

Something less than 1 per cent, of the bureau’s decisions had been reversed on appeal. This was a tribute to the fairness and impartiality which the bureau exercised in considering applications for licences, and was also indicative of the soundness of the bureau’s licensing policy.

After explaining the procedure that is followed in the formulation of industrial plans for industry, Mr. Sullivan said that already one noticeable result of the bureau’s work had been the benefits which had accrued from bringing together representatives of industries from all over the Dominion to disir tss their mutual problems. This had tended to create an appreciation of the work of other units in an industry and to foster understanding and a national outlook industrially. There was, undoubtedly, extensive scope for industrial re-organization in the DominH’i, and present trends would appear to indicate taht industry generally was realizing that more effective planning on a national basis was becoming essential if our industrial structure was to expand on modern and progressive lines to meet the heavy demands now being made upon it. The industrial committees now functioning appeared to be getting on with their jobs happily, and other industries were busy formulating plans, several of which it was hoped would be completed shortly. All applications for financial assistance from the Government for industrial purposes were reported on by the bureau. These numbered from 25 to 35 a year. In addition, the bureau from time to time considered matters of importance to industry generally. Some of these had been Hie Now Zealand-made goods publicity campaign, the technical education of foremen and managers, and industrial estates and tenant factories. Avenues for commencing new indus-

tries for the Dominion were also being continuously investigated. “I have no doubt whatever that the bureau is proving a valuable organizatio in our industrial structure, and I confidently feel that the Industrial Efficiency Act will adequately fulfil the expectations of the Government when it placed the measure on the Statute Book.” Mr. Sullivan concluded. “Bureaucratic control of industry is not the object we have in view. Under the Industrial Efficiency Act we have the machine, the object of which is to assist industry, and If I have an object beyond that it is to develop the cooperative spirit in industry, which will be of still greater benefit to the nation and those engaged in industry.”