RATIONALISATION

Evening Star, Issue 22454, 26 September 1936, Page 9

RATIONALISATION

INDUSTRIAL EFFICIENCY BILL INTRODUCED LICENSING BUREAU PROPOSED AH IMPORTAHT MEASURE [Per United Press Association.] WELLINGTON, September 25. A Bill providing for means to secure greater efficiency in industry and the licensing of industry was introduced in the House this afternoon by the Minister of Industries and Commerce, Mr Sullivan. 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 of industrial efficiency will be secured. Part I. of the Bill provides for the 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 in- ' vited and submitted. Under the 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 the manufacturing industries or other industries as the case may be. or to represent the interests of the workers or employees. These special members are only to act on the bureau when matters are being considered which affect the interests that such persons represent. In addition to acting as an advisory bodv it is provided that the bureau will , have certain other functions, the chief of which is to act as a licensing body under the Act. In addition to other functions the bureau is to prepare plans of organisation for any industry when so directed b' the Minister; to maintain 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 con’ditions, and other related matters; also to arrange for research and the publication and distribution of appropriate information among the persons or organisations concerned, with the object of increasing the general standard of industrial efficiency throughout New Zealand. The bureau is given the powers of a commission, under the Commissions of Inquiry Act, 1908. Part II of the Act provides for the preparation and submission of plans of reorganisation formally industry. Far thiVpurpose 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, additional persons to act on any committee, or may himself /appoint the committee, where he considers such course desirable. Any plans of reorganisation are to be submitted . 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, Jby regulations under the Act. Provision is made for industrial committees acting in relation to the industry concerned to carry out the plans, either by means of empowering regulations or otherwise. This part of the Act also gives the Minister the 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 the i ! plan of reorganisation, j Part 111. of the Act provides for the I keeping of registers in relation to any i industry, and for the furnishing of inj formation by persons engaged in the 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 be carried on pursuant to a license issued 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 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. In considering arty 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 sufficient 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 industry in the Dominion, the interests of other persons, and also the workers engaged in the industry or other industries, and the public interest. Subject to right of appeal to the Minister of Industries and Commerce, the bureau may on any one of a number of reasons specified in the Act, and after giving the licensee not less than six months’ notice, revoke a license. Licenses are to remain in force unless surrendered by the licensee, until revoked by the Bureau, and no license may be transferred without the authority of the bureau. Part IV. of the Act contains a number of miscellaneous provisions in regard to the utilisation of funds available for the development of industry, the disposal of any levies, fines, etc. which may be received under the Act; ■ and also provides that the Governor-

General-in-Council may make all such regulations as in bis opinion are necessary or desirable for the purpose of giving full effect to the intent and purposes of the Act. Without limiting this general authority, however, a largo number of purposes for which regulations may be made are prescribed in the Act. These include the appointment of industrial committees, the fixation of prices, royalties, discounts, etc., the control of production or marketing, and for whatever may be necessary or expedient for the bureau or any industrial committee to carry out any plan for reorganisation under the Act. NO SLEDGE HAMMER PROCEDURE PREMIER’S ASSURANCE [From Ouk Parliamentary Reporter.] WELLINGTON, September 25. The registration and licensing of industries will, according to the Bill, be operated by the Bureau of_ IndustrievS 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 specific industry contrary to the provision of the license is liable to a fine of £IOO, with a continuing penalty of £lO a day, while the 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. The Industries Bureau may either refuse a license or grant it conditionally. It is directed by the statute that, when considering license applications, it should have regard to the fact “ that the general and predominant purpose of the Act is to promote the economic welfare of the Dominion bv ensuring the most efficient conduct of its industries.” The large number of matters specified as being relevant to applications include efficiency of existing units of production, existing and potential demand for the class of goods proposed to be manufactured, whether maximum efficiency is more likely to be obtained by extension of the established unit than by the creation of a now 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. Subject to the right of appeal, licenses may be revoked if a licensee is not achieving economic production, or is unable to produce goods of a suitable quality, or if he is unable, in the opinion of the bureau, to meet the changing needs of the markets, due to inventions, advances in science, 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 production by fixing quotas or otherwise, and control of the marketing and distribution of products. No regulation is to he deemed invalid because it deals with matter provided for in any other Act, or because of repugnancy to any such Act. STATE CO-OPERATION, Mr Sullivan said the purpose of the Bill was to bring about co-operation between the State and industry, and was an endeavour ,to reorganise industry so that it might beconie more scientific and more unified, with the object of giving maximum service to the people in the supply of good-quality articles. The Bill provided the machinery for applying science, standards, and coordination in industry. It was farreaching in its provisions, as it provided for the licensing of 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. Mr Sullivan added that 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, and he had discussed it with those engaged in industry, and they agreed with the principles outlined in the Bill. They might not have concurred entirely regarding the actual administrative machinery, and he had made some alterations in an eftdeavour to meet them. He was sincerely hopeful that, as a result of that measure, great service would be given the community and to the industries of New Zealand as a whole. He proposed that, after the second reading, and before the committee stage, some time (probably about a week) would elapse to give industry the opportunity to consider the matter. He could not propose to send the Bill to committee. The Bill also provided for the promotion of industries by the State. He thought 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, it could be equally productive of harm. NO HASTE. The emphatic declaration that the Bill was not going to he sledge-hammered through the House was made by the Prime Minister, Mr Savage, when the introduction of the Bill was under consideration. Member after member had risen and plied the Minister of Industries and Commerce with questions, while the Prime Minister anxiously watched the hands of the clock moving towards the time for adjournment. When the Prime Minister had the opportunity to speak, ho said it was quite evident -to him that an attempt was being made to talk until the adjournment so that the Bill could not be introduced that day. There was, strong Opposition dissent to this statement. Mr Savage then declared in emphatic tones that the Bill was not going to be sledge-hammered through the House. Twice subsequently the Prime Minister repeated his declaration that members and everyone affected by the Bill would be given ample opportunity of considering it before it passed, and if those affected by the Bill did not want it. that would be the end of it. RECEPTION NOT UNFRIENDLY. The Leader of the Opposition (Mr Forbes) hastened to assure the Prime Minister that there was no intention whatever of holding up the Bill. It was most important and far-reaching, and he thought it might bo a good thing to take the second reading, and hold it over until nest session. Immediately Mr Forbes resumed his seat, the charman of committee (Mr Howard) put the question, and the Bill introduced and read a first time. Earner in the discussion, 'Mr Holland

(National, Christchurch North) said he had listened to the Minister's explanation with the greatest interest. The proposals seemed to indicate something very much along the lines of the N.R.A. scheme in the United States, which had much to commend it. He believed there was room for some co-operation between the State and private enterprise, so long as it was reasonably applied. In that connection there was a great deal of misunderstanding as to what rationalisation meant. Manufacturers in Wellington bad some very advanced ideas, which went a good deal further than those of some of the constituent associations. The Bill was very experimental, but where the best interests of industry were concerned co-ope-ration would come from the Opposition 100 per cent. Mr Broadfoot (National, Waitomo) said it was possible that the Bill might have a tendency to create monopolies. He was afraid private enterprise was going to be put in some sort of strait jacket. Mr Poison (National, Stratford) said he was not sure the manufacturers would appreciate what was coming to them. It might mean joint control of industry by workers and employers by means of a workers’ council. The Minister of Industries replied that the principles of the Bill had been very carefully explained to the manufacturers, and they had passed a resolution approving of the principles, but they were not satisfied that the Bureau of Industry should consist entirely of Government representatives. To meet that objection he was making provision for both the manufacturers and the workers engaged in an industry to be present when plans affecting their particular industry were being dealt with by the bureau. All the permanent officers of the bureau would be Government officers. Mr Broadfoot: Oh, Lord! The Minister said he understood that was the viewpoint of the previous Government in connection with a scheme it was considering. Any plan would have to come back to the Minister and the Government for final consideration before being put into effect. The question of time had been raised by Mr Holland, said the Minister. Before the second reading several days would elapse, and between the second reading and the committee stages there would be a further interval. Mr Atmore (Independent, Nelson) remarked that he was not unfriendly, but the Bill looked like syndicalism, and was so far-renchincL that the Government would be wellmdviscd to postpone it until next session. It was too farreaching to be brought in within three weeks or a month of the end of the session.