POWERS OF STATE

New Zealand Herald, Volume LXXVI, Issue 23482, 20 October 1939, Page 11

POWERS OF STATE

far-reaching laws BUSINESS AFFECTED , SOCIALISTIC TRENDS CONTROL OF INDUSTRIES Allegations that the existence of a utate of war. was being used by the Government as an excuse for introducing socialistic, bureaucratic and dictatorial measures having no real bearing upon the war were made in a statement voicing strong disapproval of much recent legislation, which was presented to the council of the Auckland Chamber of Commerce yesterday by a deputation of about 200 business men. The deputation was led by Mr. ,F. Howie and Was the largest ever received by the chamber. The president, Ulr. A. Ely, presided. The deputation sought assistance from the chamber in getting present commercial and industrial difficulties removed. A .resolution was submitted asking that'',a representative committee be set up to' collect relevant facts and prepare constructive suggestions for submission to a public meeting and ultimately to the Cabinet. When, at a later stage, the resolution was put to the meeting, it was carried by acclamation. Several speeches were /made and criticisms of Government policy were often applauded. Very Wide Powers '.'During recent years Cabinet and the various ' administrative departments of'the State have been armed By. Parliament with exceedingly wide powers over every branch of the industrial and commercial life of this Dominion,'' said the statement, which was read by Mr. Howie. "The avowed objects behind the taking of sucli powers were to introduce a greater measure 'of co-ordination in our economic activities, to secure a greater degree of efficiency, and to promote the general welfare of the people as a whole. The outbreak of war has been made the occasion for "an intensification of the activities of the Government along these lines." The statement added that members of the deputation were anxious to cooperate with the Government in " .unreasonable measures and stressed their determination to do all possible toward the successful prosecution of the war. "We submit, however, that some of the measures introduced by the Gov/crnment. and the meaus adopted for giving effect to them, are putting it out of our/power to render the maximum contribution of which we are capable and which we would desire to make," the statement continued. legislation and War

"The Government has asked for our co-operation; we. on our part, have indicated our readiness at all times to give it to the of our ability. But the restrictions, interferences, regimentation and control to which each and-all of ys have been subjected have > made it well-nigh impossible for us to conduct our businesses in anything even - faintly resembling a normal . manner. "In particular, we say that the existence of. a state of war is being made the excuse for the introduction of socialistic, bureaucratic and dictatorial measures, which have, in fact and in truth, no real bearing upon the war. and which are not fairly needed for the efficient conduct of our part in such wa;\ "Other having a reasonable foundation in war conditions, are being introduced in such a form or manner that there will be no easy way out of them when the war is over. Others again, which have also a proper justification in war conditions and which ought not to operate for a longer period thaif the duration of the war, are nevertheless likely to become a .permanent part of our economic life." Industrial Efficiency Act

Dealing with particular matters of complaint, the statement referred to the Primary Products Marketing Act, ..the provisions of which, it was alleged, were being used to introduce a degree of socialisation that could not possibly i : have any justification in existing war conditions. "Their effect will be to lessen, rather than to stimulate, production," said-the statement. "They have been employed to close tip certain businesses altogether, without a Eenny of compensation, and what can appen in industry can just as easily be made"to apply in others." The powers given by the Industrial Efficiency Act. the statement said, were enormous, and were without parallel in the Empire. It was a matter for serious concern that a Government should hare power to tell a group of business men such as those engaged in transport or in the wholesale disposal of fisn that they must reduce their numbers wijthin a specified number of days, or take the consequences. "The introduction of import restrictions backed by exchange control lias thrown the whole of the importing business into a state amounting almost to chaos, lifts caused grave loss and much hardship, and has paved the way V for a very considerable increase in unemployment." the statement went on. Threat to Currency

In regard to price fixation the delays and difficulties arising from the Government's method of preventing improper attempts at price raising and profiteering t were little short of a public scandal, and one section of the • community after another was being forced into rf position in which defiance of^ the law was its only alternative. The power of control of the currency of the Dominion now vested in the Minister of Finance and his colleagues Was, for practical purposes, unlimited, said the statement in referring to Hesorve Bank legislation. "Wc stand in of a currency manipulation dictated bv ' political considerations," it said. "Inflation, a real possibility, even a .probability, will bring distress and • r "jn in its train. "We.are proud of our boast that we jh ar e and have been law-abiding cities, but the Government is forcing us to resort to measures which we would filadlv avoid. For example, the 'black exchange.' How can we be expected to show proper respect for law when the > Government itself shows a complete disregard for the laws which it was elected to enforcer' "

Disquiet in Oity i'Aa in pies quoted of Government action in thi.s respect were the enforc'f'U ol import regulations after the v-piirt had. declared them to be invalid the appointment of people to offices hi disregard of specific statutory provisions. In summing up. the statement asked the C'hainher of Commerce to take immedinte st -, ps to place the various natters before the Government, to ask °r such rrdrcs.s as might be possible, •V'td to submit alternative and constructive proposals. I f ) p . resolution was then read by Mr. j- ' r'su. ;i member of the denotation. II •proposing that it lie adopted. Mr. ./ • Aliiim. a member of the couua 0 t ' lt> eliiniilni>r, said he would .-V p Pt| responsibility for the deputa- • '"ere was a good deal of'dNqiijet ,1 r 1 Cll . v and it seemed to him that •».« of Commerce was the body to take action.

The resolution was seconded by Mr, Gainor Jackson.

Speaking as one who "has been hurt and is likely to be hurt still more by the Government legislation," a member of the deputation urged the necessity for united action if results were to be achieved. Up to the present that unity had not been in evidence so that all efforts had been more or less nullified.

To anyone studying the Industrial Efficiency Act it was clearly evident that the hidden aim was to co-ordinate all industry and bring about a position where it would be possible for any Minister to come along and say: "That industry is now ready for the Government to take over, and we want it." There was plenty of evidence that that motive was now being brought to ,tho front. Many who had supported the Act wore now deeply contrite, recognising that they had made a mistake.

Applause greeted the speaker's statement that all admired Mr. W. Goodfellow's comments in the press about present conditions in New Zealand. A further reference to the necessity for the business community standing firmly together for united action was greeted by cries of "We will."

Mr. Ely said lie wished to reply to suggestions that the Chamber of Commerce had been apathetic. The Auckland chamber was the largest in New Zealand and the business community should appreciate that its leaders had been working exceedingly hard on the matters raised bv the deputation. For 14 days members of the chamber had waited in Wellington trying to interview the Hon. W. Nash and the Hon. D. G. Sullivan 'and the only concession they had eventually obtained was an indication that the Government was willing to allow business firms to add increases in costs on to their former costs while the amount of profit was to be kent exnctlv as it was before.

Mr. Klv said he recognisod the unanimity of the feeling among business men and assured the deputation that every effort would bo made to carry out their wishes.

The following committee was appointed. with power to add:—Messrs. J. Howie. J. Dennison. 1?. Roach and J. Crisp (representing the deputation), and Messrs. J. A. C. Allum, G. J. Browne, Gainor Jackson and B. . H. Kingston (representing the chamber), with Mr. Ely.ex officio. A suggestion that the Farmers' Union should be asked to co-operate with the committee was received with approval. The first meeting of the committee will bo held at tho Chamber of Commerce this morning.