TRADER AND CONSUMER

Evening Post, Volume CXIV, Issue 92, 15 October 1932, Page 12

TRADER AND CONSUMER

The deputation which demanded repeal of the Board of Trade and Commercial Trusts Acts was influential, and the Government will naturally give serious 'attention to the desires of representative business organisations, on a business matter. But the deputation does/ not appear to us to have proyed'fully its charges against these laws. The spokesmen did not claim that the Government had abused its' wide powers, and proof was not offered; of the assertion that "one would.find a very definite relationship between the failure to make profits1 Jbecause of these Acts and to-day's huge unemployment problem." Failing such proof of abuse, or of damage directly attributable to the jaws, the' Government cannot accede to the request for repeal unless there1 is nothing to be said yin favour of. retentionV That there is some reason for retention was shown by the Prime Minister and Mr. Masters in their statement of the consumer's case. ■ Consumers in such matters are not so strong as suppliers. They cannot organise to protect themselves effectively; and it is not unreasonable that the Government should retain some power for their protection.'Moreover, organisation in industry and trade, while beneficial up td a point, may quickly pass that point. Price-control, as well as price-cutting, may go too far, and maintain a standard of profit set by the least efficient unit in the industry. In the end this is bad for industry. Too many businesses are established and the attempt follows to make a bigger profit compensate for a reduced turnover. Competent observers have said for two or three years that some branches of trade are overdone in New Zealand. That is one cause of trouble. It would be a mistake to institute measures of artificial price-control which would aggravate this tendency and prevent business from finding its own level.