SCHEME ATTACKED

New Zealand Herald, Volume LXXIII, Issue 22539, 2 October 1936, Page 13

SCHEME ATTACKED

BUREAUCRATIC CONTROL

MR. S. G. HOLLAND'S VIEWS MINISTER AS DICTATOR ALL RISKS ON PRIVATE OWNERS [nv TELEGRAPH SPECIAL REPORTER] WELLINGTON, Thursday " This bill can undoubtedly be interpreted as the complete framework of a Soviet system, save that private ownership is to remain," said Mr. S. G. Holland (Opposition—Christehurch North) during the debate on the Industrial Efficiency Bill in the House of Representatives to-night. The manufacturers of the country would all welcome any move to ensure greater industrial efficiency, said Mr. Holland, but the establishment of bureaucratic control of industry would never be voluntarily accepted. 'lhe bill represented a gigantic structural framework to which the weatherboards would be applied by regulations. 'J here was a general wish to see the development of new industries on a sound basis, together with increased industrial efficiency, but the Minister had admitted that the bill if wrongly applied could be of danger to the Dominion. The industrial system -of New Zealand was not in a position to take the risk involved in any dangerous piece of legislation. Either the bill should be more carefully planned or it should not be introduced at all. Advisory Bureau Welcome " I would say that by and large the industries of New Zealand are reasonably efficient," Mr. Holland continued. " There is still room for improvement, of course, and there will always be as the world progresses. I believe that a really live bureau can bring immense service to industry, particularly in an advisory capacity. The Minister would find that industry in New Zealand would welcome with open arms an advisory bureau which as part of its work would assist by co-operating with the Department of Scientific and Industrial Research and pass on the results obtained. It is an entirely different story when it comes to handing over the management of industry to a burear "

Regarding the proposal to establish a bureau composed of civil servants, Mr. Holland said it could not be expected that civil servants trained in their own peculiar sphere could step into the management of industry and achieve a similar success there. He would not agree at all to a proposal to hand over industry to a bureau composed of civil servants. The bill definitely provided that such a bureau would control industry, with the Minister of Industries and Commerce superimposed as an industrial dictator. Opposition in Industry

" This bill means State control of industry with private ownership and private capital retained, but with a definite limit on profits," Mr. Holland said. "If the scheme of socialistic control of industry fails private enterprise will bear the entire loss. If the scheme succeeds the profits made by private enterprise will be definitely restricted. When it comes to bureaucratic control of industry I think that all industry will join with me in saying that it will not stand for such a scheme."

It had been stated that the Manufacturers' Federation would give support to the bill, but at the back of the decision of the federation was a promise by the Minister that a number of amendments would be made, said Mr. Holland. However. Mr. Sullivan had assured him that he had made no commitments on that score. All that he had promised the manufacturers, the Minister said, had already been incorporated in the bill and all he had said was that he would consider suggestions made during the debate in the House.

Criticisms of the bill which he had received from manufacturers were quoted by Mr. Holland. He had received representations that some manufacturers were very nervous about the effects of the measure. Other Objections Stated Other representations made it clear that manufacturers were definitely opposed to worker representation on industrial committees, the objection being raised that manufacturers sitting as employers on the same committees with representatives of their employees could not he expected to give away trade secrets.

It was also claimed by Mr. Holland that the men on the interim bureau of industry, who, he supposed, would also find a place on the final bureau, wore so busy with their own departmental duties that they could not find the time to devote to additional important work. He also objected to the prospect of the bureau always having a majority of Government officers. The bill did not respect the rights of private individuals. It was also a wrong principle that the bill should provide for the payment of expenses incurred in preparing an industrial plan by the industries concerned. If the State assisted in the development of agriculture financially, why should it not do the same in the development of secondary industries?

Mr. Holland described as a dictatorial power the rights given to the Minister of Industries and Commerce, not only to constitute himself the appeal authority, but also to say whether or not an appeal could be made.