EFFICIENCY ACT

Hawke's Bay Herald-Tribune, Issue 183, 20 August 1937, Page 7

EFFICIENCY ACT

Our Own Correspondent)

Employers Apprehensiye of Dr^stic Powers

(From

AUCKLAND, Last Night. Criticism of tlie potential scopo of the Industrial Efficiency Act was made by tlio president of tbe Auckland Provincial Employers' Association, Mr J. S. Dawes, in his presidential address at the annual uieeting of tbe body yesterday. "The drastic powers taken by tbe Government under this measuro have a tendency to prevent that coufidence essential to the free development of industry," he said. "if these powers were exercised to the full every business could be controlled or taken over by the Government, monopolies' estab-r lislied, and licenses refused to anyone entering into competition with thein. It would inean the virtual extinction of private enterprise and substituiion of bureaucratic control. "This may not bo tho immediate intention, but tho fact that this power exists does not tend to promote conhdence in invcstors in iudustrial undcrtakiugs. Thereforo while Govorninem) activities and expenditure of publio money have iu sumo cascs stim.ulated business, in other ways expiausion and enlerprisc hre retarded." It had been suggested, tlie president added, thafc tlie measuro had the sumo objeetive as tlie Niltioiial Industrial l(ecovery Act of Arucriea — tlie establishiiig of a higher standard of .liviug among workei's. He addod, however, tliat the American Aot aimed at regulating prieos rather than wuges. It fricd to cstabhsh price eodes to enable higlier wages to be earnod. "It is laid down that while a code oi fair competition may be prepared on the imtiative of representative trade groups or associations, sueh code liiust bo fair to competitors, employees find consumers, and inusb not promote monopoly or , dwcrhniuale against small business en-

terprises. Only in extraordinary circumstances did the President propose. to license any trade or ifidhstry. Wliether the President of the United States of America succeeds or not,, he is working along entirely different lines from those of, New Zealand, and lias evidently • a far more comprehensive grasp of the difficulties to be surmounted."