CONTROL OF INDUSTRY.

Evening Star, Issue 22459, 2 October 1936, Page 8

CONTROL OF INDUSTRY.

In the House of Representatives yesterday much time was devoted to the second reading debate ou the Industrial Efficiency Bill. The Hon. D. G. Sullivan, -who sponsors the measure in his capacity as Minister of Industries and Commerce, defended the proposals with moderation and fairness. He touched fundamental principles whin he said that the real question involved was whether the Jaw of free and cut-throat competition —the law of the jungle and the survival of tho fittest—is to be the law of the future, or whether w r e are to have the Jaw of a common-sense civilisation with organisation on modern lines. That is one side of the matter. Another is that under the Bill the perfect law of liberty is at stake. The pioneers found . this country a trackless wilderness. To-day it is a prosperous dominion. That position has been achieved by individual courage, enterprise, thrift, and hard work. There has been very little of the law of the jungle about it. The goal of the Government is made plain by these words uttered by the Minister: ‘‘We envision the co-operation of the manufacturers, the workers, and the consumers for tho good of industry under the parentage and guidance of the State.” Thus the totalitarian State is envisaged. There may be a difference in degree and in method from the practices in Russia and Germany to-day, but there is evident a very definite desire to make the individual in his business life subservient to bureaucratic control. No one, however, could reasonably declare that the industries of New Zealand are operating to their full capacity or that complete advantage is being taken of the opportunities for extension of trade that are presented. Thus Mr Sullivan’s reference to “ organisation on modern lines ” is no empty phrase.

The Government can do an immense amount to stimulate industry in many ways, but great care will have to be taken when it comes to regulation, licensing, and price control. 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 considerations, control of production by fixing quotas or otherwise and control of the marketing and distribution of products. This means the power to exercise bureaucratic control'to the most extreme degree. Mr Sullivan gives the assurance that the work is to be approached in a careful and discreet manner, and that the dangers that may exist with regard to the licensing of industry will not be overlooked. In criticising the measure Mr Holland, the Opposition member for- Christchurch North, expressed apprehension at the proposal to hand over industry to a bureau composed of Civil servants, which would “ control industry with the Minister of Industries and Commerce superimposed as industrial dictator.” This, the speaker explained, was not intended as a reflection on the present Minister. It applied to anyone who might hold the portfolio of Industries and Commerce. Tho Bill, without doubt, presents commendable features. It is significant that it is approved by the president and vice-president of the New Zealand Manufacturers’ Federation and by the Wellington Association. Tho measure in due course will be placed on the Statute Book. In principle and detail it is another step by the Government on the road to Socialism. The question of administration of the measure will be the matter of chief concern. If organisation on modern lines is achieved without radical interferpuco with individual enterprise there will perhaps be no ground for serious complaint.