MARKETING SCHEMES

Otago Daily Times, Issue 22718, 2 November 1935, Page 17

MARKETING SCHEMES

AUSTRALIAN LEGISLATION PENDING PRIVY COUNCIL APPEALS (Feom Ouk Own Cobeebponbeht) SYDNEY, October 24. Australia's comparatively rapid recovery from the depression has bean largely due to the fact that she has been able, by various methods, to limit whatever deflation has been caused by the unprecedented fall in export prices. These methods include the organised marketing Bchemes which have assisted producers of butter, cheese, milk, dried fruits, eggs, rice and wine grapes to overcome the disadvantage of low world prices by securing on the home market a reasonable price somewhat above world parity. If world parity had remained the effective price for domestic consumption, thousands of farmers must have been ruined, and many shopkeepers, merchants and traders must have gone down with them.

These marketing, or so-called stabilisation, schemes have been operated by States passing legislation supplemented by Commonwealth legislation. The whole of the schemes are dependent on this Commonwealth legislation, and ever since they were initiated the power of the Commonwealth Parliament to pass that legislation has been the subject of divided legal opinion. Some of the best legal brains are of the opinion that such legislation is invalid under section 22 of the Commonwealth Constitution, T which provides that trade between the States must be absolutely free. But several years ago the High Court of Australia, the highest tribunal in Australia, ruled that the legislation of- the Commonwealth was valid. It gave a similar ruling this year, but the judges indicated that they would like an appeal taken to the Judicial Committee of the Privy Council, London, the final arbiter on dominion constitutional questions. The High Court's more recent judgment was given in a case, James v. the Commonwealth Government. This litigation referred to the Dried Fruits Act, and the point at issue was whether the Commonwealth had power to require a merchant to market a proportion of his dried fruit output overseas when he desired to place it on the Australian market, where higher prices prevailed. The court unanimously disallowed the claim of Frederick Alexander James, fruit merchant, 4 of Adelaide, that the Dried Fruits Act was beyond the powers of the Federal Parliament, and therefore invalid. The appellant, before the Privy Council, will contend that the Commonwealth legislation constrained his freedom of trade contrary to the Federal Constitution. The Commonwealth and supporting States will contend that the Commonwealth legislation is valid and effectual.

Another appeal refers to the powers of States to regulate transport of good* by road from one State to another, when this transport competes with the Stateowned railways. The New South Wales Government considers the issues in these appeals so important that it is sending its Attorney-general (Mr H. E. Manning, K.C.) to London to appear before the Privy Council when the appeals are heard early next year. " In these cases," said the Premier of New South Wales (Mr Stevens), in explaining .the Government's decision, "final decisions'will be given on several matters which have been for some years the subject of conflicting judicial opinion. The matter relate* to the Commonwealth power to regulate interstate trade, and also the extent of he State power to regulate transport. • Uncertainty exists as to the Commonwealth power to enact certain laws supplementing State laws, whereby primary producers are enabled to set up organisa« tions to conduct the marketing of their products, and to secure home consumption prices. It is hoped to establish once and'for all the constitutional right of the Federal Parliament to legislate in support of the various State marketing organisations. It is of vital importance to the States to secure a decision which will validate the existing schemes relating to butter, cheese, and dried fruits, and the proposed scheme relating to wheat." Private traders, who resent Government control of commerce, are financing the appeals to the Privy Council, and hope thereby to secure a decision which will enable them to cast off fetters which the Commonwealth and States' Governments have put on normal trading ia the interests of producers of the goods concerned.