TRADE UNIONS. 331 directions at an early date. The measure was admittedly framed with regard to the fact that the movement was both young and inchoate, and it has helped to give trade unions stability and an enhanced sense of responsibility. We consider that the Act should be re-examined in not more than three years’ time. If the recommendations made elsewhere regarding the grant of the franchise to registered unions are accepted, these may necessitate the revision at an even earlier date of the provisions relating to the political activity of trade unions. In respect of other provisions, it may be found that some of the restrictions which were regarded as wise in the infancy of the movement are unsuited to a more advanced stage, and all the limitations imposed on the activity of registered unions and their officers and members should be reconsidered. We regard the principle that the grant of privileges should be limited to registered unions as sound, but it is important to ensure that the conditions attached to registration are not such as to prevent any well- conducted bona fide union from applying for registration. Annual Audit. In the meantime we recommend three amendments relating to matters of detail. At present registered trade unions have to meet the cost of the obligatory annual audit, and the qualifications of the auditors are prescribed by Government. It isnot possible for the smaller unions to meet the cost of employing properly qualified auditors and, as a result, Government has had to permit their accounts to be audited by persons with no qualifications in accountancy. We consider that all anions should be able to secure free of charge the conduct of their audit by officials of Government. Government has already accepted respon- sibility for the audit of the accounts of co-operative societies in some provinces. The provision of auditors for trade unions should cost little to Government, while it will relieve registered trade unions of a consider- able charge on their funds. At present the larger unions are required to employ auditors who are authorised to audit the accounts of companies ander the Companies Act, and any union which desires to employ such an auditor should remain at liberty to do so. But unions which do not desire, or are unable to engage, auditors of this class should be given the alternative of having an official audit rather than of employing other persons as auditors. The reports of the official auditor on trade union audits and investigations should be made available for the public as well as for the union. Other Amendments. Two other minor amendments appear to us to be desirable. (4) Section 22 requires that ordinarily not less than half the officers of a registered trade union shall be actually engaged or employed in an industry to which the union relates. Officers” here includes the executive. In view of the desirability of securing that the members of a union take an active part in its work, we consider that two-thirds would be a more suitable minimum. As there is no limitation to the size of the executive, this will not restrict the number of outsiders that can %e included. and mav lead in some cases to an unduly large executive.