WIDE CONTROL

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 5

WIDE CONTROL

N.Z. INDUSTRIES PROPOSALS OF NEW BILL FAR-REACHING MEASURE STATE REORGANISATION PROMOTION OF EFFICIENCY * (Parliamentary Reporter.) V WELLINGTON, this day. The Industrial Efficiency Bill was introduced in the House of Representatives. t. The Hon. D. G. Sullivan said the purpose of the bill was to bring abpnt eo-operation between the State and industry in an endeavour to reorganise industry, so that it might become' more scientific and more unified, with the object of giving the nlaxinrem■ : service "to people• -in • the supplj' of "good quality articles. The •bill, provided 'macbinery for applying science standards and .co-ordination in industry.. It was far-reaching in its pro Visions, as it provided for Ucensing industry where it might seem ; desirable to apply that principle. It also provided for a Bureau of Industry, giving attention to the development of new industries. -The Minister added tjjat he desired to secure the best opinion from all sides-of the House.- He fully realised its importance, and its implications. It. was a substantial experiment on a wide scale, and he was perfectly frank and honest in wishing to get the best advice on the bill from all sides of the House. The principle of licensing industry, while not entirely new, was a very important aspect of the matter, and one that required a great deal of consideration by Parliament. Not only the department, but a number of economists, experts and various Committees, for several, months had considered the matter, a and he had discussed it with those engaged in industry. ; BUREAU UNDER MINISTER

i'j The bill, said Mr. Sullivan, also provided for the promotion of industries by the State. He thought that the bill had possibilities of immense service to the industries of New Zealand, but if it was wrongly or unwisely administered when they had licensing that it could be equally productive of harm.

The registration and licensing of industries will, according to the bill, be operated by the Bureau of Industries on the direction of the Minister. If this procedure is adopted in respect of any industry, the- first step is the compilation of a register. It will be an offence with a penalty of £SO to give false particulars.

If the licensing system is adopted, any person conducting a specified indnstry contrary to the- provisions of the license, is liable to a fine of £IOO, with a continuing penalty - of ; £10 a day, while directors or others concerned in the management of the company, other than its servants, which " commits this offence are liable, in addition to the penalty on the company, to a fine of £lO a day during the continuance of the offence. ECONOMIC WELFARE The Industries Bureau may either refuse a license or grant it conditionally. It is directed by statute, when considering license applications, to have regard to the fact ‘ ‘ that the general and predominant, purpose of the Act is to promote the economicwelfare of the Dominion by ensuring the most efficient conduct of its industries. ’/ A large number of matters specified as being relevant to applications include the efficiency of the existing units of production, the existing and potential demand for the class of goods proposed to be manufactured, whether the maximum efficiency is more likely ' to be .obtained by an extension of an established unit than by the creation of a new one, the possible displacement of workers, the cost of production of similar products overseas, and the possession by the applicant of any patent right or secret process. FIXATION OF PRICES Subject to a right of appeal, licenses may be revoked if* a licensee is not achieving economic production or unable to produce goods of suitable quality, or if he is unable, in tlie opinion of the bureau, to meet the . changing needs of the markets due to inventions, advances in the science of technology, or custom. Extensive powers are given in the bill to make regulations which include the fixation of prices for any classes of goods or services, royalties and other consideration, control of pro- - duction by fixing quotas or otherwise, and control of marketing and distribution of products. No regulation will be deemed invalid because it deajs with the matter provided for in any other Act, or because of repugnancy to any such Act.

PURPOSES OF BILL GENERAL ORGANISATION (Tor Press Association.) The purpose of the bill is to promote the economic welfare of New Zealand by providing for the promotion of new industries in the most economic form, and so regulating the general organisation, development, and operation of industries that a greater measure 01' industrial efficiency will be secured.

Pari 1 of the bill provides for (he setting up of a Bureau of Industry to act as an advisory body in relation to industrial matters, and, in particular, in regard to plans for the reorganisation of industries, which plans are to be invited and submitted under tlie provisions of the bill. The bureau, which will replace the interim Bureau of Industry now acting as an advisory body to the Minister under the provisions of the Board of Trade Act, is to consist of such persons employed in the service of the Government as the Minister of industries and Commerce may from time to time appoint. In addition to such members, the Minister is empowered to appoint special members to represent the interests of persons engaged in manufacturing industries or other industries as the case may be, or to represent the interests of workers or employees. These special members are only to act on the bureau when matters are being considered which affect the interests of such persons represented. In addition to acting as an advisory body, it is provided that the bureau will have certain other functions, chief of which is to act. as a licensing body under the Act. In addition to other functions, 1 lie bureau is to prepare plans of organisation for any industry when so "directed by the Minister, a continuous survey of industries and industrial methods, and to arrange for the collection, publication and distribution of statistics relating to output, costs, prices, markets, working conditions and other related matters, also to arrange for research and publication, and distribution of appropriate information among persons or organisations concerned, with the object of increasing the general standard of industrial efficiency throughout Xew Zealand. POWERS OF COMMISSION.

The bureau is given the powers of a commission under the Commissions of inquiry Act, 190$. Pari. 2 of the Act provides for the preparation and submission of plans ■of reorganisation for any industry. For this purpose, committees are to be set up in relation to each industry, and the Minister of industries and Commerce may require and specify the extent to which owners, employers, workers or consumers shall be represented. The Minister may also appoint any other addition*persons to act on any committee ,or may himself appoint a committee where he considers such a course desirable.

Any plans of reorganisation are to be submit led to the Bureau of Industry for Investigation, report, and recommendation, and the industrial committees are to co-operate with the bureau in such matters. The bureau is also directed to receive evidence and hear representations from all persons affected by the plan. After giving those persons affected by the plan due notice of its material provisions, and also the opportunity for representations or objections, the Minister may arrange for the application of such plan to the industry concerned. This may either be effected by voluntary methods, or, if necessary, by regulations under the Act, Provision is made for the industrial committees acting in relation to the industry concerned to carry out plans either by means of empowering regulations or otherwise. LEVIIiS ON INDUSTRY

This part of the Act also gives the Minister power to amend any plan, and regulations may be made imposing levies upon any industry to provide funds for meeting expenditure in relation, to .preparing or carrying out a plan of reorganisation. Part 111 of the Act provides for the keeping of registers in relation to any industry, and for the furnishing o[ information by persons engaged in, industry. This information may be required by notice given by the Minister of Industries and Commerce in the New Zealand Gazette, or by any other means the Minister considers appropriate to the circumstances.

Section 16 is an important clause providing that the Minister may, by notice in the Gazette, require that any industry specified in such notice shall only he carried on pursuant to a license issuied' by the Bureau of Industry, and substantial penalties are provided for any breach of this section. Exemption from licensing is provided for certain cases where " licensing for substantially the same purposes is already provided under any other Act. Subject to the right of appeal to the Minister of Industries and Commerce, the bureau is charged with the issue, revocation; and control of licenses. The bureau may also attach any terms or conditions to the issue of a license. FIXATION OF< PRICES

Tn considering any application for a, license in respect of both an existing or a new business, the bureau is directed to give any persons affected by its decision! suilicient opportunity of giving evidence or making representations, and is further directed to have regard to a large number of considerations specified' in the Act having relation, inter alia, to the efficiency of the industry in the Dominion, the" interests of other persons, and also workers engaged in the industry, or other industries and public interest. Subject to the right of appeal to the .Minister of industries and •Commerce, the bureau may on any one oF -,i number of reasons specilled in the Act and after giving the licensee not less than six months notice, revoke the license. Licenses are to remain in force unless surrendered by the licensee until revoked by the bureau, and no license may he transferred withor.lt tin- authority of the bureau. Part IV iif the Act contains a uumher of miscellaneous provisions in ro,;;ml 1,. the utilisation of finals available for the development of indtelry,

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