BOARD OF TRADE ACT

Nelson Evening Mail, Volume LXIV, 26 March 1930, Page 2

BOARD OF TRADE ACT

MENACE TO TRADE AND COMMERCE

WHAT MAY HAPPEN

(Contributed by Associated Chambers of Commerce).

Notwithstanding the promises of two successive Governments, extending over a period of four or five years, the Board of Trade Act, a survival, by a circuitous route, from the war legislation of the great world upheaval, remains on the (Statute Book to-day as a gravo menace to tlio trade and commerce of the Dominion. In 1920 the lion. A. D. McLeod, Minister <if Industries and Commerce in the last Reform Cabinet, had a Bill prepared in accordance with representalions 11io commercial community had made to him. Unfortunately, a rush of business at the close of the session of Parliament, on the cvo of a general election, left no time for the measure to be placed on the Statute Book. When Parliament next 'assembled the Reform party had been defeated at the polls and the United party, supported by the Labour party, in due course mounted tho Treasury Benches. Early representations were made to Sir Joseph Ward, the new Prime Minister, on the subject, and to the Hon. J. G. Cobbe, tho new Minister of Industries and Commerce, and they both expressed a desire to see the undesirable features of the Board of Trade Act removed as early as possible. Here again, however, delay intervened, largely, it may be assumed, owing to the indisposition of the Prime .Minister, and the obnoxious measure still survives in its entirety.

In previous protests against the menace of tiie Board of Trade Act it has been the custom to present only the more glaring features of the measure; but in view of the unsettled political position just now it may be of general interest to quote in extonso some of the powers it confers upon the Minister of Industries and Commerce, who by the amending Act of 1923 is clothed with all the responsibilities and all the authority previously borne by the members of the Board:—

(1) For the purpose of such investigation the Board (now the Minister alone) may by order require any person, firm or .body corporate engaged or concerned or supposed to be engaged or concerned in any industry, to answer in writing, within such time and in such form as the Board thinks

fit, any questions which relate to that industry or to the connection of that person, firm or body corporate therewith, or to any other matter which might have formed the subject of judicial inquiry under this Act. (2) For the purpose of such investigation the Board may by order require any person, firm or body corporate engaged or concerned, or supposed to be engaged or concerned, in any industry to produce for the inspection of any officer or other person nominated in that behalf by the Board, any books

or documents in the possession or control of that person, firm or body corporate of which inspection might have

been required in a judicial inquiry under this Act relative to any matter affecting that industry, and to allow copies or extracts from such books or documents to be made by the person so inspecting them. (3) If default is made by any person,

firm or body corporate in obedience to any order of the Board under this section, such person or body corporate and each member of. such firm, and every person who counsels, procures, or is otherwise knowingly concerned in such default shall be liable on sum- • mary conviction to a fine not exceeding one hundred pounds. (4) Every person who deceives or obstructs or attempts to deceive or obstruct, the Board or any associate or officer thereof or any person nominated by the Board as aforesaid, in the conduct of any such investigation shall be liable on summary conviction to a fine not exceeding one hundred pounds or to imprisonment for a term not exceeding three months. And so on, and so on, by every inquisitorial method that can be devised, the honest trader and the careless one, the competent and the incompetent, may be haled before a magistrate or a judge on the evidence of any officer or agent of the Board, or, apparently, on the evidence of any ill-disposed person, who will be assured that his "investigation" will be "treated as confidential." Needless to say, no Minister of the Crown lias yet exercised the authority imposed upon him by this astounding legislation. Sir Francis Bell, Attorney-General and leader of the Upper House, in moving the second reading of the Bill in that branch of the Legislature, expressed very fervently a hope that "care would be taken not to unnecessarily intervene in the management of private concerns." The same hope .has been expressed as emphatically by the present Minister of Industries and Commerce as it was by his predecessor in office, but while the measure remains on the Statute Book in its present form it is not merely an affront to the business community, but also a menace to the well-being of the whole Dominion. In addition to the authorities already quoted, the Minister alone by regulation may make such provision as he deems desirable for the following purposes: (a) For the prevention or suppression of methods of trading, competition or business; (b) for the prevention or suppression of monopolies and combinations in or in relation to any industry; (c) for the establishment of fixed maxium or minimum prices or rates for .any classes of goods or service; (d) for the prohibition, regulation or control of differential prices or rates for goods or classes of persons in respect of goods or services; (e) for the regulation and control of industries in any other manner whatever which is deemed necessary for the maintenance and prosperity of those industries and for the economic welfare of New Zealand. No doubt these regulations were framed with the very best intentions, and they may have served some useful purpose when they were enacted during the aftermath of the War; but if so that useful purpose has now ceased to exist and it is obvious that in the best interests of the community the regulations should be removed from the Statute Book.