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.