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Price and Wage Control Act


Published: 1947

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Price and Wage Control Act


1988 Revised Edition






C
T

PRICE AND WAGE CONTROL ACT

Price and Wage Control Act CAP. 113 Arrangement of Sections




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C
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PRICE AND WAGE CONTROL ACT

Arrangement of Sections
Section
1 Short title..........................................................................................................5
2 Act binds the Crown. .......................................................................................5
3 Interpretation....................................................................................................5
4 Appointment of Competent Authority. ............................................................6
5 Competent Authority may fix maximum prices of goods or services

and minimum wage rates. ................................................................................7
6 Manner in which maximum price may be fixed. .............................................7
7 Incidental provisions........................................................................................8
8 Proportionate prices. ........................................................................................8
9 Competent Authority may vary price order. ....................................................8
10 Appeal. .............................................................................................................8
11 Power to prohibit sale of goods until order made. ...........................................8
12 Sale at more than maximum price or upon conditions.....................................8
13 Refusal to sell at maximum price.....................................................................9
14 Prices to be indicated. ....................................................................................10
15 Delivery of invoice. .......................................................................................10
16 Powers of Competent Authority to obtain information. ................................10
17 Record of prices to be kept. ...........................................................................11
18 Penalty. ..........................................................................................................11
19 Compensation to purchaser buying goods at more than the maximum

price. ..............................................................................................................12
20 Offences by corporations. ..............................................................................12
21 Responsibility of employer for acts of his servants. ......................................12
22 Procedure for prosecutions. ...........................................................................12
23 Complaints of underpayment of wages..........................................................13
24 Maximum price and wage orders...................................................................13

Arrangement of Sections CAP. 113 Price and Wage Control Act




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25 Regulations.....................................................................................................13

NOTE 14

SUBSIDIARY LEGISLATION ...........................................................................14

Price and Wage Control Act CAP. 113 Section 1




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C
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PRICE AND WAGE CONTROL ACT

Acts Nos. 3 of 1947, 22 of 1950, 12 of 1956, 28 of 1984

AN ACT TO MAKE PROVISION FOR CONTROLLING THE PRICES
OF GOODS AND SERVICES AND WAGE RATES

Commencement [8th September, 1947]

1 Short title.
This Act may be cited as the Price and Wage Control Act. (Amended by Act 28
of 1984).

2 Act binds the Crown.
The provisions of this Act in relation to wages and wage rates shall bind the
Crown. (Inserted by Act 28 of 1984.)

3 Interpretation.
In this Act unless the context otherwise requires—

“cash” includes coins, banknotes, cheques, postal orders or payment into
a bank or savings account; (Inserted by Act 28 of 1984. )

“Competent Authority” means the Competent Authority for the Control
of the prices of goods and services and of wage rates; (Amended by Act 28
of 1984.)

Section 4 CAP. 113 Price and Wage Control Act




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“employee” means any person employed under a contract of service or of
apprenticeship. For the avoidance of doubt it includes any civil servant, as
defined in section 2 of the Interpretation Act (Cap. 1), as amended, but
does not include any non-civilian member of the Tonga Defence Services
or any person working on the family land as a member of the family rather
than a paid worker, but it does include a member of the family working as
a paid worker; (Inserted by Act 28 of 1984. )

“kind” means any form of payment arising out of a contract of service or
of apprenticeship other than in cash; (Inserted by Act 28 of 1984.)

“maximum price” means the maximum price for goods or services fixed
by the Competent Authority under the provisions of this Act;

“price” when used in connection with the provision of services includes
the rate charged for supplying or carrying on any service and the term
price or rate shall be deemed to include valuable consideration of any kind
whatsoever direct or indirect, but does not include wages or wage rates;
(Amended by Act 28 of 1984.)

“retail” when used in relation to any sale means a sale to a person for
consumption or use otherwise than in his trade or business;

“retail price” means the price paid or payable for goods sold by retail;

“service” means any service supplied or carried on for hire or reward by
any person;

“trader” means any person who in connection with any business carried
on by him produces, sells, has sold, or proposes to sell any goods, or who
supplies or who carries on any service; (Amended by Act 28 of 1984.)

“wage rate” means the cash payment per hour or per day of work or the
cash equivalent if paid in kind or partly in kind and partly in cash;
(Inserted by Act 28 of 1984.)

“wages” means the sum paid in cash to an employee under his contract of
employment, for a specified time and includes salaries; (Inserted by Act
28 of 1984.)

“wholesale” means the sale or supply of goods to a person for the purpose
of resale or for use by such person in his trade or business;

“wholesale price” means the price paid or payable for goods sold by
wholesale.

4 Appointment of Competent Authority.
His Majesty in Council may appoint one or more persons to be the Competent
Authority, and the Competent Authority shall have and may exercise such

Price and Wage Control Act CAP. 113 Section 5




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powers and functions as are conferred on him by this Act. (Amended by Act 28
of 1984.)

5 Competent Authority may fix maximum prices of goods or services
and minimum wage rates.
(1) If the Competent Authority considers it expedient to control the prices of

goods or services or minimum wage rates in order to secure their
availability at fair prices he may, in his discretion by order fix and
determine the maximum prices at which goods may be sold or services
provided, the minimum wage rates which may be paid, and the manner in
which payment for goods and services or wages shall be made either
generally or in any specified part of the Kingdom:

Provided that an order of the Competent Authority relating to the
minimum wage rates shall not come into force until approved by Cabinet.

(2) Before deciding upon whether to make a minimum wage rate order the
Competent Authority may if he considers expedient to do so, invite
representations from interested persons and take any such representations
into account in so deciding.

(3) In considering whether or not to fix and declare minimum wage rates in
accordance with subsection (1), the Competent Authority shall have
regard to factors such as the economic conditions, employment situation
and wage levels generally prevailing in the country, the need to provide
workmen fair remuneration for work so as to motivate production,
capacity of the employers to pay, cost of living and relative living
standard of the people.

(4) The Competent Authority may with the approval of the Cabinet exempt
any particular industry or employer from the observance of the minimum
wage rate order. (Substituted by Act 28 of 1984.)

6 Manner in which maximum price may be fixed.
An order made under the provisions of section 5 may direct that the maximum
price shall not exceed a specified sum or may prescribe the manner in which the
maximum price shall be ascertained and may—

(a) fix different maximum prices for the same class of goods or
services having regard to the terms upon which and the conditions
and circumstances in which the goods are manufactured, imported
or sold or the services provided; and

(b) prescribe alternative methods by which the maximum price may be
ascertained for the same or different classes of goods.

Section 7 CAP. 113 Price and Wage Control Act




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7 Incidental provisions.
An order under the provisions of section 5 may contain such incidental and
supplementary provisions as are necessary or expedient for the purposes of
the order.

8 Proportionate prices.
Where the quantity of goods sold or offered for sale is greater or less than the
quantity specified in the price order such goods shall, subject to any express
provision to the contrary in the price order, be sold or offered for sale at the
proportionately increased or diminished price as the case may be.

9 Competent Authority may vary price order.
The Competent Authority may by order or by notice in writing addressed to any
trader, cancel or vary the terms of any price or minimum wage rate order as
regards the goods, services or minimum wage rate specified in the order or
notice or exempt any goods from the operation of such price order:

Provided that in the case of minimum wage rates the Competent Authority shall
first obtain the approval of Cabinet. (Substituted by Act 28 of 1984.)

10 Appeal.
Any person aggrieved by an order or notice made or given by the Competent
Authority may, within 30 days of the date of such order or notice, appeal by
petition in writing to the Cabinet.

11 Power to prohibit sale of goods until order made.
Where the Competent Authority has reasonable cause to believe that the cost of
goods imported into the Kingdom after the commencement of this Act has
materially altered since the making of any price order in respect of such goods
he may by order or by notice in writing to the person concerned prohibit the sale
of such goods for such period as will enable him to vary or confirm the existing
price order or to make a new price order in respect of such goods.

12 Sale at more than maximum price or upon conditions.
No person shall—

(a) sell or buy or agree or offer to sell or buy goods at a greater price
than the maximum price;

Price and Wage Control Act CAP. 113 Section 13




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(b) provide or agree to provide or obtain or agree to obtain services at a
greater price than the maximum price;

(c) except with the written permission of the Competent Authority sell
or agree to sell any goods or provide or offer to provide any service
subject to a condition requiring the buying of any other goods or the
provision of any other services;

(d) pay or agree to pay or to work for wages lower than the minimum
wage rate specified in a relevant order. (Inserted by Act 28 of 1984)

13 Refusal to sell at maximum price.
(1) No person carrying on the business of the sale of goods and having goods

available and no person engaged in supplying or carrying on any service
shall except with reasonable cause, the onus of proving which shall be
upon him, refuse to sell goods or supply any service to any person
tendering immediate payment at the maximum price for such goods
or services.

(2) In the case of a refusal to sell goods reasonable cause shall be deemed to
include any case where the person refusing to sell—
(a) supplied a reasonable quantity of the goods, or, after making

reasonable provision for private consumption or use, had not a
sufficient quantity of the goods in his custody or under his control
to supply the quantity demanded, in addition to the quantity
required to satisfy all other contracts then subsisting, under which
he was obliged to supply quantities of such goods for use or
consumption within the Kingdom and the ordinary requirements of
his business;

(b) was a wholesale trader in the goods and the person who demanded
to be supplied was not a manufacturer or a retail trader therein or in
goods made or partly made therefrom;

(c) was acting in accordance with a practice for the time being
approved by the Competent Authority.

(3) For the purposes of determining what is a reasonable quantity of any
goods within the meaning of this Act, regard shall be had to all the
circumstances of the case, including the question whether the person who
demanded to be supplied was or was not, at the time of the demand,
carrying on business as a retail trader in the goods demanded, either alone
or with other goods.

(4) The provisions of subsection (2) of this section shall apply, mutatis
mutandis, to a refusal to supply or carry on any service.

Section 14 CAP. 113 Price and Wage Control Act




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14 Prices to be indicated.
A trader having goods displayed for sale shall legibly mark thereon, or otherwise
indicate in plain figures, the retail price of any such goods, for the information of
the public.

15 Delivery of invoice.
(1) A trader who sells by wholesale any goods the maximum price of which is

fixed shall supply at the time of sale to every purchaser an invoice
containing the particulars undermentioned and shall retain a copy of
such invoice—
(a) the name and address of the seller and purchaser;
(b) the date;
(c) a description of the goods;
(d) the quantity of the goods;
(e) the price charged.

(2) A purchaser who buys by wholesale any goods the maximum price of
which is fixed shall demand and receive at the time of sale the invoice
required by subsection (1).

(3) The Competent Authority may require a trader selling goods by wholesale
to a retailer to state on the invoice required by subsection (1) the
maximum price fixed for the sale by retail of such goods by
the wholesaler.

16 Powers of Competent Authority to obtain information.
(1) For the purpose of enabling him to carry out the duties and exercise his

powers under the provisions of the Act the Competent Authority, and any
officer authorized in writing by him, may—
(a) require any trader to supply him either orally or in writing with any

information in his possession relating to goods or services, or to
wages and hours worked therefore; (Amended by Act 28 of 1984. )

(b) by notice published in the Gazette or in a newspaper or news-sheet
circulating in the Kingdom or by written notice to any trader
individually require such trader or any specified class of traders to
render a return or a series of returns in such form as may be
specified setting forth to the best of such person's knowledge and
belief such particulars regarding his dealings in relation to any
goods or services or to wages and the hours worked therefor as may
be specified in the notice; (Amended by Act 28 of 1984.)

Price and Wage Control Act CAP. 113 Section 17




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(c) at any reasonable time require any trader to produce for his
inspection any document or documents of any kind whatsoever
relating wholly or in part to the business carried on by such trader
in relation to the sale of goods or the carrying on or supply of
services, or to the payment of wages and the hours worked therefor;
(Amended by Act 28 of 1984.)

(d) require any trader to furnish him with copies of any such document
as is referred to in paragraph (c);

(e) enter during business hours upon any place or premises in the
occupation of any trader and search for and inspect any documents
of the kind referred to in paragraph (c) hereof and any goods and
make copies or abstracts of such documents and take samples of
such goods and take such steps as may be reasonably necessary to
effect such purposes;

(f) take possession of any documents which appear to him to constitute
prima facie evidence of a breach of a price or wage rate order.
(Amended by Act 28 of 1984.)

(2) No person shall—
(a) obstruct the Competent Authority or an authorized officer in the

exercise of his powers under the provisions of this section;
(b) wilfully fail to give information or to produce any document

lawfully required of him under the provisions of this section;
(c) knowingly give any false information relating to goods and services

or to wages and the hours worked therefor to the Competent
Authority or any authorized officer. (Amended by Act 28 of 1984.)

17 Record of prices to be kept.
(1) Every trader shall keep records and accounts, including stock and costing

records, of all goods offered by him for sale to the public.

(2) No trader shall, without the consent of the Competent Authority, destroy
any document whatever relating wholly or in part to any business carried
on by him, or to any goods or services, until a period of 3 years has
elapsed since the documents originated.

18 Penalty.
Any person who contravenes or fails to comply with any of the provisions of this
Act or of any order, notice, direction or requirement lawfully made or given
thereunder shall be liable to a fine not exceeding $100 or to a term of
imprisonment not exceeding 2 years or to both such imprisonment and fine.

Section 19 CAP. 113 Price and Wage Control Act




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19 Compensation to purchaser buying goods at more than the
maximum price.
Where a person is convicted of selling goods at more than the maximum
price and—

(a) the court considers that the purchaser did not know and could not
reasonably be expected to know that the price paid was in excess of
the maximum price, or

(b) the purchaser reported the transaction to the Competent Authority
or to a police officer of or above the rank of Inspector or District
Officer or Town Officer within 48 hours of the transaction,

the Court may, in addition to any other lawful penalty that may be
imposed, order the person convicted to pay to the purchaser the difference
between the maximum price and the price at which the goods were sold or
the services supplied together with such sum, if any, as the court considers
just compensation for any expenses incurred by him as a result of the
overcharge.

20 Offences by corporations.
Where a person charged with an offence under the provisions of this Act is a
body corporate every person who, at the time of the commission of the offence,
was a director or officer of the body corporate may be charged jointly in the
same proceedings with such body corporate, and where the body corporate is
convicted of the offence, every such director or officer shall be deemed to be
guilty of that offence unless he satisfies the court that the offence was committed
without his knowledge and that he exercised all due diligence to prevent the
commission of the offence.

21 Responsibility of employer for acts of his servants.
Any employer who employs in his shop, store or other place of business any
agent, clerk, servant or other person shall be answerable for the acts or omissions
of such agent, clerk, or servant in so far as they concern the business of such
employer; and if such agent, clerk or servant or other person commits any act or
makes any omission which is an offence or which would be an offence if made
or committed by such employer, such employer and his agent, clerk, servant or
other person may be jointly charged with such offence.

22 Procedure for prosecutions.
All prosecutions for offences against this Act shall be instituted and conducted
by the Competent Authority, or by any other person authorized by him to act on

Price and Wage Control Act CAP. 113 Section 23




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his behalf, or by the Police, in the Magistrate's Court for the District in which
such offence shall have been committed. (Substituted by Act 12 of 1956.)

23 Complaints of underpayment of wages.
(1) Any employee who considers that he is not being or has not been paid in

accordance with a relevant wage rate order may lodge a complaint in
writing with the Competent Authority or a person authorised and
designated by the Competent Authority for this purpose.

(2) The Competent Authority or the designated person shall investigate the
complaint promptly and if he considers it to be well-founded shall
forthwith inform the employer accordingly.

(3) Should the employer fail to make good the underpayment either in whole
or in part within a period of 14 days of being so informed, the Competent
Authority or the designated person shall institute a claim in the
Magistrate's Court on behalf of the aggrieved person for the amount then
claimed to be underpaid.

(4) Notwithstanding anything in section 20 and 64 of the Magistrates' Courts
Act, the Competent Authority or a person authorized under section 22 and
under this section, though not of counsel nor a solicitor, may prosecute
any claim under subsection (3). (Inserted by Act 28 of 1984.)

24 Maximum price and wage orders.
(1) His Majesty in Council may, by Order, prescribe a general freeze on

prices of goods and services, salaries and wages or a maximum wage or
maximum rate of increase in salaries and wages as an exceptional measure
if overall economic circumstances so warrant it, for such period as is
reasonable.

(2) It shall be an offence to pay or to receive goods, services, salaries or
wages in excess of any maximum prescribed under subsection (1).

(Inserted by Act 28 of 1984.)

25 Regulations.
His Majesty in Council may make Regulations for the better administration of
the purposes of this Act.



Section 25 CAP. 113 Price and Wage Control Act




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NOTE

SUBSIDIARY LEGISLATION
Price and Wage Control Orders, being temporary in nature, are omitted from this
Edition. A reference to such orders, and a note of where they may be found, is
included in the Index to the Laws in the preliminary pages to Volume 1 of the
Revised Edition.