INDUSTRIES BILL

New Zealand Herald, Volume LXXIII, Issue 22403, 27 April 1936, Page 13

INDUSTRIES BILL

PLANNING PRINCIPLE MANUFACTURERS' ATTITUDE SUPPORT FOR LEGISLATION "My view is that manufacturers generally will accept the principle of the proposed bill for the promotion, regulation and licensing of industry, but that they will want to discuss and may criticise some of the important, details that affect them." This opinion was expressed by Mr. J. A. C. Allum, president of the Auckland Manufacturers' Association, on returning from Wellington, where hs met representatives of other associations and discussed with them the intended legislation. Mr. Allum pointed out that manufacturers knew no more about the proposed Industry Establishment and Efficiency Bill than had published in the newspapers, but he confidently anticipated the Government would give them the opportunity of studying its provisions and hearing their representations before it became law. Combination for Protection Discussing the proposals as outlined bj T the Minister of Industries and Commerce, the Hon. D. G. Sullivan, Mr. Allum admitted that there might be manufacturers who objected tp the basic principle of interfering with the absolute right of the individual to run his business as he wanted to do, but they would have to adroit that their businesses wero under the protection of the State, which in turn was entitled to make certain claims. There was a world-wide economic war and it was very doubtful in view of the present trend if industries could continue to stand alone. The logical thing was to combine for self-protection. Planning had already entered into industry gnd the proposed bill was merely a logical sequence. Even to-day many classes of business enterprise could not be started without authority. That applied to water, gas or electric power supply, banks, insurance and many others. As persons long since had given up the right to do absolutely what they wanted to do, it was surely illogical to object to an underlying principle they had already accepted. To Ensure Efficiency

In Mr. Allum's opinion the proposed bill did no more than ask manufacturers to get together to see that there was efficiency in industry. If an industry could show it was efficient within itself it would be in a strong position, if it required protection from overseas competition, to approach the Government on the subject. Mr. Alluin did not think certain dangers, such as the stifling of legitimate competition, were inherent in the proposed legislation. If a business wanted to extend and could show a good "case for doing so, it would surely get permission. Furthermore, if a person or firm desired to start a new business, there should be no difficulty in doing so if it could show that such business would perform a service to the community. There would be no fear of a controlled monopoly. The gas industry, for example, •was granted a monopoly, but it was controlled and had to sell a product up to a certain standard. The proper regulation of industry would stop uneconomic price-cutting and would eliminate wasteful competition to the benefit of labour and industry. Previous Consideration From other inquiries it was ascertained that proposals were investigated by manufacturers for legislation somewhat on the lines of the impending bill when the previous Government wag in power. The Coalition Government had been prepared to bring in legislation that would he acceptable to manufacturers, but proposals had been held up pending inquiries about certain details. The present Government was not, therefore, introducing something that had not already been given some consideration. There was, however, an important difference in the present ischeme compared with the old. [t related to the final control being in the hands of the Minister, that condition not being in the previous proposals.

Some differences of opinion undoubtedly exist among manufacturers on the proposed legislation. The proprietor of a big business said he started his industry in a very humble way and he doubted if any. board would then have thought the enterprise warranted. Not only had the business succeeded, but the industry itself had expanded. If manufacturers were given protection against unfair competition from outside, they could be trusted not to exploit the domestic market. They would fight for this market among themselves, and success would go to the most efficient. In any case, even efficiency could be overdone. For example, two or three big fruit shopt could probably cater for Auckland, But the small man, who might not always be very efficient in his methods, fulfilled a' purpose. He employed a little labour, he contributed rates to the municipality, paid for electric lighting and perhaps helped several related trades. That example could be applied to most industries.