INDUSTRIAL EFFICIENCY

Evening Star, Issue 22462, 6 October 1936, Page 5

INDUSTRIAL EFFICIENCY

BILL DISCUSSED BY CHAMBER OF COMMERCE POSTPONEMENT OF MEASURE SOUGHT INADEQUATE SAFEGUARDS PROVIDED Strong criticism of the Government’s Industrial Efficiency Bill was made yesterday at a meeting of members of the Dunedin Chamber of Commerce, it being contended that experience had shown that once State control began it tended inevitably and increasingly to extend until in the end liberty would totally disappear and initiative would be stifled. Monopolies, it was contended, would be brought about when trade was restricted in the way proposed under the Bill. Surprise was also expressed at the wide scope of the Bill, which would control all industry, every phase of business, and every profession. The (meeting which was presided over by Mr C. B. Barrowclough in the absence at Wellington of the president and vice-president, passed a motion affirming a number of objections to the Bill, and asking that further time should be given to those concerned to consider the Bill and to make representations to the Government. Mr Barrowclough said the meeting had been called to consider the Industrial Efficiency Bill, which was one of the utmost importance. The Prime Minister had said that he did not wish to foist the Bill on the community if it did not meet the wishes of those concerned, and for that reason the meeting had been called so that expressions of opinions could be had. Mr H. Brasch said lie proposed to outline the provisions of the Bill. He had been asked to collaborate with a small committee that had been set up to draw up a resolution for submission to the meeting, and the members of the committee had asked him to read a memorandum which he had prepared. “ By the Industrie! Efficiency Bill complete and absolute control of all callings, all businesses, and all professions of every possible kind is placed in the hands of one man,” said Mr Brasch. The Minister had power through his bureau to license persons to continue in their callings, businesses, or professions, and to revoke those licenses whereby persons might be prohibited from continuing their callings, businesses, or professions, and, further, he might prohibit new persons from entering, upon or commencing any calling, business, or profession. and_ he might favour one individual as against others.

Through his bureau he might inquire into and decide upon the integrity of any man, his technical knowledge, his financial resources, his organising ability, the efficiency of his plant, and many other matters'. He might prevent persons from selling their businesses by refusing to consent to an assignment of the license. He might fix prices and discounts and allot, quotas to businesses whereby their outputs might be restricted. _ He might demand that businesses give up their existing systems of bookkeeping and costing and adopt systems prescribed by himself. He might make levies on businesses to raise the moneys required for carrying out industrial plans. And all these things might be done without any possibility of appeal save to the Minister himself. Mr Brasch said that if such powers were exercised as were embodied in the Bill monopolies in certain callings, businesses, or professions might be vested in those concerns at the time actually engaged therein or such of them as succeeded in obtaining licenses, and that all other persons might be prohibited from entering the favoured circle. It was suggested that in spite of criticism of the present competitive system of conducting businesses—and it must be recognised that no human system could hope to attain perfection—the chamber felt that it must ever be remembered that unrestricted competition and that alone had provided the urge which had led to ever-increasing improvements in devices and methods for manufacture and distribution and otherwise. Was it not a fact that unrestricted competition, and that alone, had in absolute and undeniable fact, and concurrently with and despite the protection of labour by increased wages and shorter hours, resulted in the provision of manufactured goods and services for th 6 people of the world at prices which for many years had ever tended to become lower, while the only hope of still lower prices lay in intensifying instead of eliminating competition? Would it not be wise seriously to deprecate many of the applications that had recently been made to the Government to interfere in trade, seeing that each application might provide justification for some such arbitrary control as was sought to be_ established by the Bill and might bring about numerous far more serious troubles than the immediate trouble sought to be remedied? Experience had shown that once State control had begun it tended inevitably and increasingly to extend until in the end liberty would totally disappear and initiative would be stifled. Mr Brasch said the last paragraph was of the greatest importance. If they considered all the applications that wore being made to the Government at the present time to regulate trade they would see that there was a danger of a monopoly being established in all those trades. At present people understood the existing conditions. J hey knew that if they wished to embark on a certain trade they were at liberty to do so. For instance, a man who was a carpenter might wish to become a master builder. He suggested that the people would not stand for monopolies of the kind which would be brought about when trade was restricted in the way suggested in the Bill If applications continued to be made to the Government asking for the regulation of trade they would inevitably have State Socialism. (Applause.) DANGERS OF THE BILL. -k W. Jeavons said that Mr Brasch bad said sufficient to show the ramifications of the Bill and the dangers in the Bill as it stood at present. To his mind the chief danger was in the almost unlimited power given to the person who happened to be the Minister of Industries at the time. There was provision for the setting up of a bureau, and that bureau was formed by the appointment by the Minister himself of a certain number of civil servants. In addition, there was the right to apivoint certain representatives from manufacturing industries and certain representatives *rom sectional Interests. The powers of the bureau were in the bands of flic civil

servant members, and behind it all was the power of the Minister to veto any plans made with regard to any industry. 'That power did not control only manufacturing industries, as a great many people thought, but the whole of industry. In addition to tbe setting up of a bureau, there was to he a system of licensing, which would have the effect of limiting the scope of the individual. A person who wished to start a business would require to give notice of his intention to the Minister, and would require to have a licence before iie was allowed to commence. Then there would be plans which would have to bo worked 10. The fullest powers were to ho given to impose any plans designed for any particular industry. It was easy to visualise the interference to which a man would be subjected before plans were arranged, irrespective of the interference that would take place in the carrying out of the plans before they were finally adopted. He was sure a great many people did not realise how much the Bill concerned them. There had been a feeling that this was a manufacturers’ Bill anil nothing else. Consequently it had not received the attention that it should have had. Thinking on the above lines, the committee had concentrated on putting forward by way of resolution one or two points to emphasise the need for postponing the Bill for at least one session so that tim© would be given for a conference with the Minister it he were honest in his desire for a workable arrangement to promote industry and the general conditions of industry. It appeared to the speaker that there was nothing to be lost but a great real to be gained by some little delay. He moved the adoption of the motion brought forward by the committee, as follows: “ That this chamber, representative of all classes of the commercial community, while admitting merit in the principles of the Industrial Efficiency Dill now before Parliament, desires to affirm the following objections:—(l) That as this Bill deeply concerns every possible type of business and profession and not merely manufacturers, further opportunity should be given to all those interested to consider its provisions and implications and to make representations to the Government; (2) that the Bill, as drafted, does not provide any adequate safeguards at all for the interests of those concerned; (3) that the powers conferred by the Bill upon the person for the time being occupying the position of Minister of Industries and Commerce are too expensive, and should be modified, and in particular that a right of appeal from Ministerial decisions to an independent tribunal should he provided for. For these general reasons, we strongly urge upon the Government the desirability or postponing consideration of the Bill till next session.” SORRY STATE OF AFFAIRS. Mr H. L. Longbottom, who seconded the motion, said the Bill was so farreaching in its ramifications that, if it became law in its present form, the control of industry, every phase of business, and profession would pass from its present methods into control by bureaux or whatever else was set up by the legislation. Perhaps there were some who thought it desirable for some Government control in business, but he would suggest that very careful consideration should be given to the matter. Once bureaucratic control came in—and experience had shown that where it did begin in certain industries it tended inevitably to extend —liberty totally disappeared and initiative was stultified. That would be a sorry state of affairs. They should have a greater opportunity of considering the Bill than they had been given. In the case of a measure with such far-reaching effect they should be given much more time to consider it, “ I think that what has been said with reference to the very wide scope of the Bill is of very great importance to the members of the chamber),” said the Chairman, when He invited those present to discuss the matter. The Bill, he said, was not just a matter effecting big industries, but quite definitely might apply to any occupation whatever—that of a plumber, a licensed drainer, a doctor, or a lawyer. There would be power for the Minister to regulate as to how they should carry on their businesses. GOVERNMENT OUT TO SOCIALISE.

Mr E. E. Nicolson said they should definitely leave out of the resolution any words of appreciation. The Government was out to socialise them in every respect it possibly could, and it was in their interests and in the interests of the people to oppose it. He suggested the motion should bo altered by deleting the words expressing any appreciation of the measure.

Mr Jeavons, in answer to Mr Nicolson’s remarks, said that what was in the minds of the committee was the preamble to the Bill itself. If the preamble were read Mr Nicolson might alter his views. It became a question ■of whether the words of the preamble .were carried through in the spirit of the Bill.

Mr Nicolson: It is like Mr Savage’s preamble when he was getting into power. He said there was nothing to worry about.

Mr Jeavons said there was something to be said for the co-ordinating of industry and something in licensing. Quite a number of industries had already approached the Minister for one or both of those things. The Bill was not altogether introduced on his own volition. The Chairman read the preamble to the Bill, this introducing the measure as “ an Act promoting the economic welfare of New Zealand.” In the course of further discussion Mr Nicolson said that to his mind no Government should interfere with business. Such interference had never been a success, and yet they were practically agreeing that something should bo done. MORE TIME WANTED. Mr Jeavons said the purpose of ihe meeting was to press for more time to consider the matter. Mr J. Sutherland Ross suggested that the motion should commence:— ” This chamber, representing all classes of the commercial community, desires to affirm the following objections to the Industrial Efficiency Bill now before Parliament.” He also suggested that they should ,ask that further consideration of the Bill should be delayed till “ at least ” next session. The suggestions put forward by Mr Ross were adopted, and the motion was then carried. It was pointed out that the resolution carried gave support to one carried by the representatives of the various chambers in Wellington. It was decided to send a copy of the resolution to the Prime Minister, the Minister of Industries and Commerce, and to the Associated Chambers.