DAYS OF ANXIETY

Otago Daily Times, Issue 23044, 21 November 1936, Page 8

DAYS OF ANXIETY

AVALANCHE OF LEGISLATION * REMOVAL OF SAFEGUARDS ADDRESS TO ASSOCIATED CHAMBERS The annual conference of the Associated Chambers of Commerce of New Zealand was commenced at Wellington yesterday. In his opening address the president (Mr Norton Francis) remarked that the conference was not along the usual lines, but was more of a meeting to conduct formal business following the Empire Chambers of Commerce Congress held in Wellington last month. After referring to the vast amount of work which the congress had entailed, Mr Francis stated that one of the many things which it had taught was that there were wider ' horizons and greater objectives to be reached after by the chambers in New Zealand and that they were not playing a lone hand but were pulling as one of an Empire team for the achievement of freer commerce, industry, transport and trade, a closer union of the Empire and the best development of its resources. The visits of the overseas delegates, had done much to provide an object lesson to the business .men of New Zealand in cooperation and unity. SOCIALISTIC LEGISLATION Mr Francis said that he felt he must make reference to the avalanche of parliamentary legislation which had descended or. the country since the last , annual conference. . “During the session of Parliament which ended last month,” he said, “no fewer than 79 Acts were placed on the, Statute Book, of which number 58 were public Acts, including some which are so Socialistic in character as to cause the gravest misgivings as to their future effect, more particularly in years of low or even normal prices for our exports. The legislative machine has been so fast-moving that the ordinary business man 'and the general public have had no opportunity to assimilate properly all that has been done, or to come to a full realisation of the radical change which is being effected in the affairs of the country. We have even seen the spectacle of a session’s Acts being amended by other Acts during the same session. To the ecoi nomic student, New Zealand is passing through a profoundly interesting transformation; to the man in the street the period is a breathless and perhaps for the time a not unexhilarating one; to those whose lot it is to carry on the real business of the country these days are days of anxiety, of overnight adjustments, and of efforts to conform with new and increasing regulations and constantly changing laws and requirements There has been scarcely time for us to lift up our heads and look around us to see how lines of demarcation are ibemg swept away, safeguards removed and 'foundations altered, so that the old reliable signposts are no longer a guide to the future, and prophecy becomes idle. . ~ “ It is not the wish, nor is it the practice, of Chambers of Commerce to cling to worn-out shibboleths, to proohesy that any change from old customs to new must lead to disaster and to' assert that no good can come out of legislation that drastically alters the order of things. In a constantly changing world, keenly comnetitive. helped by science and other aids and besieged with the products of struggling peoples, businesses could not continue from generation to generation unless those in charge of such businesses were prompt to adapt new methods, to adjust and reorganise their systems, not merely as a case of legal necessity, but also from originating initiative. But restrictive and regulatory legislation is so much a factor in industry, commerce and trade in these days that not only can it not be ignored, but it becomes a duty on those whose practical experience is of weight and value to spare no .effort to aid and to counsel and to co-operate with and to criticise the responsible authorities. By this method it is possible for a Government to avoid pitfalls in framing legislation which is considered necessary and for the public interest to be fully and adequately, served and preserved. “The New Zealand Chambers of Commerce have endeavoured to advance their viewpoint of what constitutes the public interest, and it will increasingly become their duty to do this in the future. With every regai d to progress, three dangers appear: first, precipitate action and over-zealousness in legislation in the desire to make New Zealand a leading legislative laboratory; secondly,- insufficient regard for sound and proven principles underlying individual enterprise as opr posed to State regimentation, and thirdly, inexpert use and administration of the immense Socialistic powers now in the hands of the Government. Since these powers are on trial in this country for the first time, how great is the danger of inexpertness. Everything depends on administration, because great powers taken to try and achieve great successes can also lead to great failures. SAFEGUARDS IGNORED “ There are certain factors already in evidence,” he continued, “which must cause grave disquiet. One of these is the increasing disregard which is being paid by our legislators to important constitutional safeguards. I speak of the manner i i which Acts have been placed on the Statute Book without giving affected parties the right of appeal from Ministerial or departmental decisions on matters affecting the businesses, the estates and even the liberty of citizens. Laying aside all argument concerning the merits and

demerits of any given piece of legislation, surely no Act of professed economic expediency can be justified in that part of it which finds it expedient also to abolish one of the safeguards in the system of British justice. We are told that * decisions which are to a large extent administrative should receive protection, from the delay and expense involved in litigation which in general would not alter the final result.’ Surely it is not the protection of the decision, but the protection of the person affected by the decision, which is vital. A decision which is sound and j'-st will not suffer in the test of a British court. We are moving on to a greater realisation of the state of which Lord Hewart wrote, of ‘government by a vast army of anonymous officials, hidden from view, but placed above the law.’ COST OF EXPERIMENTATION “ Our Government departments must expand. Already they are doing so. Press notices constantly inform us of additional appointments to Government departments —new inspectors for this Act, more overseers for that Act. Already, it is stated by one independent commentator, there are over 100.000 persons dependent on Government bounty and'provided for out of taxation. If the Government exercises all the powers it has taken of late, very substantial additions will need to be made to the ranks of our public service. Can the country stand the cost? Will business be able to move in its strait-jacket? “ Private business must continue to retain the personnel for the conduct of affairs unless a civil service of frightening dimensions is to be built up for the administration

of all businesses by the State. As it is, taxation is heavy upon us. Under the Budget income tax has increased, and graduated land tax ; and other burdens have been ini- : posed, offering a direct contrast with the Federal Budget for Australia, which has afforded all-round relief from the burden of special emer- , gency taxation imposed at the onset 1 of the depression years; at the same time it "has given benefits of a domestic and social character, in- | eluding the restoration of public i service salaries. New Zealand has launched out into the middle of the stream on what is plainly an adventure. By comparison, Australia is in calm water, but this Dominion has yet to discover what is in store for her. “ Let us hope,” Mr Francis added, “ that bountiful seasons and unrestricted markets at high prices for our exports will be enjoyed whilst we are experimenting with these new and often costly conditions. This should enable our legislators during the good times, which we hope will continue for a few years, to determine which of them can be continued with safety and which must be jettisoned if New Zealand is to be a prosperous country with the majority of its people happy and content. Without better than average seasons for productivity and better than average prices for our exports, a regular continuance of the present abnormal expenditure appears impracticable because present rates of taxation could not be paid, and once the public credit has been exhausted further borrowing by the State is certainly impossible.” STABILITY OF CURRENCIES In conclusion. Mr Francis referred to the devaluation of the

franc and the agreement between Great Britain, France and , the United States for the stabilisation of their currencies, which he called the most influential and favourable factor during the past year towards the development of international trade. “ The co-operation of other nations has been invited in the hope that the stabilisation of currencies will tend to promote prosperity in the world and to improve the standard of living,” he said. “It was reported at the same time that the three Governments attached the greatest importance to action being taken without delay to relax progressively the present system of quotas and exchange control with a view to their abolition. The object as stated in the London Times, must be to work towards a system of co-operation promoting the general welfare whilst carefully safeguarding the interests of the individual nations; not to get rid altogether of economic nationalism, which would be impossible and only doubtfully desirable, but to reconcile a sane nationalism with a sane internationalism. If reasonable success can be achieved not only should the fear of a European war be lessened, but New Zealand should be able to find some long-wanted new markets.”