THE OTAGO DAILY TIMES MONDAY, October 19, 1936. "TRADE FOLLOWS INVESTMENT"

Otago Daily Times, Issue 23015, 19 October 1936, Page 8

THE OTAGO DAILY TIMES MONDAY, October 19, 1936. "TRADE FOLLOWS INVESTMENT"

The Prime Minister presumably believes a statement which he himself made to the delegates to the Congress of Empire Chambers of Commerce in Wellington a week ago. “ Once upon a time,” he said. “ we were told that trade followed the flag. Now we know that trade follows investment ” The Dominion, Mr Savage indicated, was looking for fresh capital from overseas. And while fresh capital is being looked for, the Government goes ahead calmly and deliberately with a piece of legislation which, it has been warned, will definitely frighten investors away from the New Zealand scene. It is a perverse and extraordinary performance. Virtually the only reply that the Minister of In-

dustries and Commerce can make to the damaging criticism of the proposed industrial efficiency legislation offered in Dunedin by Lord Elibank is that this distinguished representa' 5 tive of British industry was “ speaking out of turn.” The display <v of irritation and resentment of criticism given by the Minister in the House on Friday does him no credit. Lord Elibank is told that he forgets the obligations due from a visitor to this country. The public may be rather inclined to think, however, that the Minister himself forgets portion of his duly as a host when he ’ accuses Lord Elibank of “ interfering ’’ in the domestic politics of this country, and ignores portion of his responsibility as a Minister when he refuses to listen to criticism, whatever its source, which is addressed with authority As it happens, Lord Elibank’s brief rejoinder to Mr Sullivan is entirely adequate. Far from being a ‘casual visitor ” tp the Dominion, he has pointed out, he is the representative of two large British companies trad ing extensively here. He is thus directly interested in proposals which may affect ■ the control of those businesses, and he must be conceded the further right, in view of his high , status in the Federation of Empire Chambers of Commerce, to attempt to define the attitude of the City of London towards legislation which he is afraid it “will not understand.” Lord Elibank has done no more than plead for delav in the passing of the Industrial Efficiency Bill until the British reaction to it has been communicated to the Government. It seems that this plea, like most of those made by interested organisations throughout the country, has fallen on deaf ears The Government shows no willingness to be turned from its purpose During the committee stages of the Bill on Friday the Minister in charge of the measure introduced his promised amendments. These, as we have already suggested, will doubtless go part of the way toward making the Bill' less objectionable, but ■ they will still leave the Minister as the determining authority with reference to any plan for industrial reorganisation Provision is now being made that, before the Minister ratifies a plan, a vote of the industry concerned is to be taken. Asked if an adverse vote would mean no, plan, Mr Sullivan made the extraordinary reply that that was the case, but, if plans were opposed by a majority of units in any industry, it might be necessary, “in the public \ interest,” to ask the House to pass Special legislation to deal with that industry. So much for the determining vote of industry! Apparently as much importance is to be attached to it as the Minister deems advisable. Industry is to be controlled, whether it likes it or not. That appears to be the Government's last Word on the subject It is fairly safe to forecast that Lord Elibank’s pointed comment, that British capital asks for conditions that it can understand, and that it does not expect to be taxed out of existence as soop as it is invested, will be heard agkin before the Minister of Finance -has been very long in London.