PLANNED INDUSTRY

Dominion, Volume 33, Issue 138, 6 March 1940, Page 5

PLANNED INDUSTRY

Efficiency Act Explained To Bakers ADDRESS TO CONFERENCE The aims of the Industrial Efficiency Act were explained Io the conference of the New Zealand .Master Bakers’ and Pastrycooks’ Association yesterday by .Mr. L. J. Schmitt, secretary of the Industries and Commerce Department. The main purpose of the Aet, said .Mr. Schmitt, was to promote the economic welfare of Hie Dominion by facilitating efficient conduct of industries. The term industry was so defined that it might include any type of business; so far, however, the Act had been applied principally to purely manufacturing industries, and also to a few distributive industries. The Bureau of Industry was the body which administered the Aet, the aims of which were achieved in two ways—by a system of licensing and by the operation of industrial plans. The Bureau of Industry was comprised of 13 ordinary members, who were senior State executive officers, together with four special members, who were representatives of manufacturing and agricultural interests. The bureau was tlie licensing and planning authority under the Act, and most of its business was concerned with licensing and the formulating of plans for industries. The administrative staff dealing with bureau matters were the investlgating and advisory officers of the Department of Industries and Commerce, who were specially equipped to deal witli the problems affecting the different industries brought within the scope of the Aet. Industries were declared subject to licensing by the Minister of Industries and Commerce. As a general rule the Minister licensed an industry only if he were satisfied that most of those engaged as principals in the industry desiring licensing, and that licensing would be in the interests not only of the industry but also of the consuming public. The object of licensing was to regulate the entrance of new units into the industry so that there would not be an uneconomic number in the industry involving, as this did, excessive capitalization and wasteful competition. Conditions imposed on licensees were such as were deemed to be for the more effective organization and conduct of the industries concerned, with the consequent result of greater efficiency and better service to the public. Operation of Licensing.

Once an industry had been licensed no new units could begin in the industry without having first obtained a licence to do so from the Bureau of Industry. All such applications were duly advertised, and direct notice of the applications sent, to all existing units In the industry likely to be affected by the bureau’s decisions. All decisions of the bureau were subject to a right of appeal to the Minister, who bad so far referred all such appeals to the Hon. Sir Francis Frazer for hearing and report. An aggrieved applicant had one month in which to lodge appeals, and any other person who might be aggrieved by a decision of the bureau had three months. A number of appeals bad been successful, though the total represented an extremely small proportion of all the licensing decisions which the bureau bail made. The industrial committee, when appointed by the Minister, virtually became the controlling authority in the industry, subject to the Act am! regulations. and to the general policy of the Bureau of Industry. The eoinniPtee was empowered to take such action as' it might deem necessary to give effect to the plan. In addition, the bureau usually looked to the industrial committee to make recommendations to the bureau on all applications for licences in respect of the industry concerned. Mr. Schmitt said that 32 industries had already come under the Act. There was no compulsion to come in; some found it useful, and others burdensome, .

Air. Schmitt answered a number of questions.