STATE IN BUSINESS

Bay of Plenty Beacon, Volume 4, Issue 155, 15 September 1941, Page 2

STATE IN BUSINESS

LABOUR POLICY

STRONG CRITICISM

"The nearest approach to> fullblooded Socialism was made by the Industrial Efficiency Act of 1936." — Jobson's Investment Digest, Sydney, on "State Controlling Industry in New Zealand."

The Digest, dealing with this legislation, refers at the outset to the "fiery opposition right from the first" that it encountered. "Business men looked askance at so unprecedented an invasion of their liberties: investors, grown wary of inefficien! Government control, entertained very natural suspicions." The journal quoted outlines action taken by the Auckland Chamber of Commerce to register its protest against the Act and goes on *o state: "Business men have no objection to the fundamental purposes of the Act, to promote new industries and enhance. the efficiency of existing industries., Tliis is just wliai New Zealand needs." It considers that New Zealand's primary industries cannot absorb many more workers or produce much more wealth. "The econc.mic future of the country is inevitably dependent on the development of secondary industries. For this Government assistance is essential . . . But th--Government which encountered no opposition on broad aspects of policy foolishly adopted an administrative system which alienated the sympathy of investors, put irksome restrictions o: 1 existing industries and provided not ihe slightest guarantee of efficiency." One-Man Power Strong exception is taken by the Digest to investing the Minister of industry and Commerw. with power to take any measure for the rationalisation and establishment of industries, and provided not the slightest "the Minister received enormous dictatorial powers over the whole of New Zealand industry," justifying. in the Digest's view, the use by the Auckland Chamber of Commerce of the expression-: "The deadening hand of bureaucratic control * The system as at first constituted, however, the Digest complains, "was not even efficient bureaucracy" The greater part of its work was made over to committees and these were supplemented by an executive of five members, four of them on v. full-time basis "Control by the Bureau means control by the Civil Ser

vice." "Business men see more wrong with the Bureau than faulty organisation, Bureaucratic interference, aimmg at the socialisation of industry, is what they complain of. Undoubtedly truth exists in such allegations." It is further stated by the Digest that the Bureau has acted to. keep people in business rather than 1o make industrjr efficient. Wool Packs Example The petrol reselling and pharmacy businesses are cited as examples. But special reference is made to th«\ NeAv Zealand flax (phormium tenax) industry, which "has been rehabilitated by virtually charging part of the costs to wool growers" and involving them in an additional expenditure of £30,000 a year. The criticism concludes: "At a time when the new Budget reveals a growing appreciation of business needs and orthodox common sense in the New Zealand Cabinet, is il too much to hope that some reforms of the Industrial Efficiency Act will be placed on the Statute Bock;? The. objectives of the Act are good enough to warrant, the provision of better machinery."