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Thames Star

FRIDAY, OCTOBER 30, 1936. STATE CONTROL.

"With malic* toward* none; with charity for all; with firmneee in the right, as God gives us to see the right."—Lincoln.

To the business community, the Industrial Efficiency Bill, with its numerous amendments, is of more than passing interest, since it embraces in its scope all trades, occupations, manufactures, Avorks and services of any kind. Although the details of the Bill in its new form are not known, the remarks of the Minister indicate that it is the intention of the Government to endeavour to regulate industry of all kinds and bring them all under State control, with the desire of promutihg more efficiency in business. No one denies that absolutely unregulated private enterprise may prove wasteful if too many factories for the production of the same articles are erected. Hitherto the fittest has survived and when that in its turn becomes stereotyped in its methods it has had to give way to newer and more efficient concerns. This process entails waste of capital, but the loss falls on private persons and not on the taxpayer who has to foot the Bill for all losses made in tho businesses undertaken by the State or local bodies. It is said that losses due to excessive competition can be avoided by proper planning ahead. The idea is most attractive, especially to people who have no experience of business. They do not realise that every business man and every farmer has to lay plans for months ahead. When the State undertook the planning of the production of wheat and other crops in the United States it led to the burning of much produce which many persons in the country would have been glad to consume. There is no reason to suppose that it is a simpler matter to plan in other industries than it is in farming. We do not deny that State intervention may prove an clement of value in inducing those engaged in some industries to take a .wider view of the outlook than those concentrating on their own interests alone are likely to take. The Bill provides that the Minister for Industries and Commerce for the time being may initiate reorganisation schemes by requiring the Bureau of Industry to prepare provisional plans to be published in the Gazette and submitted to thoso concerned for information and remarks. The plan may then bo amended "as the bureau thinks fit" and then put into effect, As wo see it, the weak point is that tho Bureau of Industry is to consist of civil servants selected by the Minister, who in most eases will have no knowledge of the industry with which they are dealing. Their recommendations may risk the loss of capital and goodwill which represent years of hard work. The businesses which are brought to toe the line will then be placed in an advantageous position and newcomers will have to secure the support of tho bureau before they can obtain entry into the charmed circle. We were reminded the other day that Lord Nuffield started his career in a small bicycle shop with no capital,, and gradually developed a business which provides employment directly or indirectly for many thousands of workers. What chance would such a man have in this Dominion if ho Wished to break into an established industry? It would be interesting to see what sort of a report on his qualifications would be provided for the Minister by the bureau on such an application. At the time he began to extend his activities Mr. Morris himself had no idea of his own capacities, but he .was ready to take risks and made good. Our new Act may prevent any enterprises of this sort on which progress in a young country must depend. Planning must be used with the utmost caution if it entails restrictions.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/THS19361030.2.6

Bibliographic details

Thames Star, Volume LXVI, Issue 19850, 30 October 1936, Page 2

Word Count
645

Thames Star FRIDAY, OCTOBER 30, 1936. STATE CONTROL. Thames Star, Volume LXVI, Issue 19850, 30 October 1936, Page 2

Thames Star FRIDAY, OCTOBER 30, 1936. STATE CONTROL. Thames Star, Volume LXVI, Issue 19850, 30 October 1936, Page 2