Government, the economy and the constitution : a study of the constitutional implications of the Economic Stabilisation Act 1948 and the Regulations made pursuant to that Act

Abstract

The thesis advanced is that a fundamental incoherence has developed in the New Zealand constitution as a result of the extension of the power of the executive to intervene, by legislative measures, in the economy. This is argued by reference to the Economic Stabilisation Act 1948 and the regulations made pursuant to that Act between 1948 and 1978. The New Zealand Government has used the regulation-making powers conferred by the Economic Stabilisation Act 1948 in fulfilment of its responsibility to control the economy. Regulations - subordinate legislation - have a recognised position at constitutional law and are the subject of recognised limits. It is argued that sight has been lost of these limits, and that there is reason for concern in this state of affairs since the safeguards that theoretically exist to control the exercise by government of its regulation-making powers, are in a state of near collapse. The conclusion reached is that the needs of the modern state have required the executive to acquire and exercise powers, including legislative powers, over the economy. Ways are proposed of returning some coherence to the constitution, by incorporating these powers into the constitutional system and controlling them within the democratic process.