TO CHECK PROFITEERING

Greymouth Evening Star, 25 July 1936, Page 7

TO CHECK PROFITEERING

NEW BILL’S PROPOSALS

MAGISTRATE’S WIDE POWER

[SPECIAL TO “STAR.”]

WELLINGTON, July 24

The procedure adopted by the Government for regulation and control of commodity prices is outlined in the Prevention of Profiteering Bill, which was introduced in the House of Representatives by Gover-nor-General’s message to-day, just before the House rose for the weekend recess.

The former intention of the Government to establish a tribunal, consisting of a Magistrate and two assessors to investigate price increases has been abandoned in favour of a trribunal consisting of a Magistrate alone. The provisions of the Bill which include the fixing of basic prices are extended to services as well as goods. Under the Bill, the basic price is to be determined. It is to be either the current price at which goods were sold on June 1 this year, or the actual price charged for goods on that date. Questions of locality, quantity, quality and terms of payment and delivery are taken into account in determining prices ruling on June 1. and if there are distinctions between the current price and the actual price, the lower of the two is to be basic price. The same considerations, with necessary modifications are to apply to fixing of prices or rates to be charged for services, except in the case of contracts of service between master and servant. The Bill lays it down that every person commits an offence of profiteering who either as principal or agent, sells supplies or offers for sale or supply, any goods at a price that exceeds the basic price by an unreasonable amount. The maximum penalties for offences are fixed at a fine of £2OO, or three months’ imprisonment, in case of an individual, or fine of £lOOO, in case of a company. or other corporation. !t is provided that one or more special tribunals, to be known as judicial tribunals for the prevention of profiteering, are to be appointed by warrant, and the area in which a" tribunal is to have jurisdiction, may be defined. Unless a special area is defined, the tribunal appointed under the legislation will have jurisdiction throughout the Dominion. Only a Stipendiary Magistrate can be appointed to a tribunal. Proceedings under the legislation for offences of profiteering must be instigated by an officer of the Department of Industries and Commerce, acting by direction of the Minister of Industries and Commerce. The Magistrate alone will hear the proceedings and informant may appear personally or be represented by counsel or by any other person appointed by the Minister. Prosecutions for offences under the legislation can be instituted at any time within three years of the commission of the offence.

When proceedings are brought before the Magistrate he will have full judicial powers, and may also require any person to produce books or other documents, having a bearing on the case. A person nominated by the Magistrate is empowered to inspect and take extracts from these books and documents, but any information obtained in this fashion is to be regarded as confidential, except for purposes of proceedings. The Magistrate will have power to prohibit the publication of any information produced, or evidence given in course of proceedings, if he is satisfied that its publication would be unduly detrimental to defendant, in conduct of his business. Any breach of this prohibition will be regarded as contempt of Court. The admissibility of evidence in any proceedings is to be at, the sole discretion of the Magistrate, irrespective of whether such evidence would be legally admissible in other proceedings. The Bill sets out the factors to be taken into consideration by the Magistrate in determining whether any particular increase in price of goods oi' services is reasonable, or not. Two relevant factors are the extent by which the expenses of defendant have been directly or indirectly increased since June 1, by operation of any amendment to industrial legislation, and the extent by which defendant’s business has been or is likely to be increased by the greater public demand due to the higher purchasing power. The Magistrate will have absolute discretion, in determining whether the increases above basic price have been reasonable or not. llis decisions are to be final and conclusive.