AN IMPORTANT INQUIRY.

Taranaki Daily News, 11 February 1928, Page 12

AN IMPORTANT INQUIRY.

The Liberal Party in Britain has made an inquiry into industrial problems and has issued an exhaustive volume of 503 pages which covers the whole economic position. The book has not been written by mere politicians, but by business men and trade unionists in the Liberal ranks, in collaboration with Mr. Lloyd George. The report, therefore, may be taken as authoratative and of special value, not alone for Britain but the whote Empire. The most interesting feature of this report is that it condemns the Dominion system of preference to unionists. Such a system, it is contended, would make the Empire burdensome to the poor classes in Britain, and prevent her doing what she can do now for Imperial development. The system would be mutual only as regarded the Dominions, not being applicable to India, and not enforceable in the Crown Colonies and Protectorates, for which it was impracticable and likely to be more harmful than beneficial. This is a strong indictment of the Australian and New Zealand system of compulsory arbitration and of preference to unionists, and remember that the condemnation of the system does not rest wholly with business men, but it is also the considered opinion of trade unionists. There is really nothing to recommend our compulsory system except that is has conferred certain rights upon certain individuals who regard these rights in the light _ of. vested interests. Preference to unionists is wrong in principle, for no man should have preference by law in his work. The effect of this clause is to raise up aristocrats of labour and give them the right to victimise their fellow workmen. It is the inalienable right of every man to work as best he can and as strenuously as he ean, and the State has no right to give anyone preference. The Liberal report opposes direct State trading, which is the curse of New Zealand and Australia. It is recognised that some work must be done by the State, and the Liberal programme favours the development of public hoards to control utilities. It advocates large scale semi-monopolistic private concerns. This is in accordance with the trend of affairs throughout Europe and America. It is now a time of big companies with massed production and low costs. Of course, such concerns require to he stringently inspected, and the ordinary shares of these large concerns are now regarded as sound investments for the funds of life insurance companies, and this is, heartily supported by Mr. Maynard Keynes, the eminent economist. In New Zealand as a general rule we have too many companies of small calibre engaged in heavy competition of overhead and other charges, resulting in heavy costs of production. We would be better off with fewer and larger companies. They would be stronger financially, possess better facilities for marketing, have lower costs of production, and be able to sell their products at a lower rate, thus giving the consumer the benefit of the saving effected. But, again, we say the report is more condemnatory of the New Zealand and Australian system of compulsory arbitration, and the authors definitely declare that they cannot recommend it to England. It would have been recommended to other countries long, long ago if it had been any good, for it has been with us for over thirty years, and has failed to attract any other nation except Australia. Professor Tocker, who has been addressing business men in Sydney last week, made it appear that the Federal Primo Minister, Mr. 8. Bruce, is calling a conference of employers and employees, somewhat on the lines as has been done in New Zealand, and it is obvious from this that both countries question the value of arbitration. Both sides require large organisations to fight their battles, and this is very costly to the consumers, but the Arbitration Court fosters that. There' aro two ideals before the community. One is the utmost freedom of industry with both sides concentrating on production and the elimination of waste in development, with the greatest possible liberty, and with responsibility thrown on individuals and voluntary groups. This system was working exceedingly well in the United States and to some extent in England and on the Continent. However, the system is voluntary and with no State interference. The other ideal, according to Professor Tocker, is the perpetuation of State control, with an attempt to protect the worker, but actually to restrict and hamper industry, without granting workers any real benefit and without the Court performing, any really necessary service, though by its own system of centralisation magnifvinr the problems it attempts to