State Enterprises

Press, Volume LVI, Issue 16722, 3 January 1920, Page 8

State Enterprises

So much attention was devoted during the election campaign to tho results of Stato enterpriso in Queensland that audiences at candidates' meetings began to show a certain degree of restivencKfl when the subject was mon'iior.ed. -Now tliat tho matter has been given a rest for a week or two, it may bo of interest, as it is certainly of somo .importance, to tako notice of the Stato industrial enterprises of New South Wales, which havo recently been tho subject of ft report by tho AnditorGcjieral of that State. There appear —tho summaries of tho report given by the Sydney papers are not quite elenr on this point—to bo thirteen of theso enterprises, and advocates of tho nationalisation of everything will mako tho most, one may bo sure, of tho statement that nino of them show a profit on tho past year's working. Their satisfaction will, however,' bo slightly dashed by tho further fact that whereas the total profit on these nino undertakings amounted to £25,345, tho loss on three others was £78,952. Tho individual profits range from £4041 on tho Monier pipo works to £556 on a quarry, ami tho Auditor-General makes it clear that tho return of 14 per cent, on tho pipo works, and of 10 per ccnt. on the brick works, were duo to effi-

cifnt management, systematic organisation, and discernment in buying. That these qualities aro not inseparable from Stato management of an industrial concern is proved by the loss of rather more than £68,000 on the Stato timber yards. These yards, wo gather, have never been a paying proposition, but this year's deficit was greater than tho accumulated losses since the inception; of tho concorn, and, as tho AuditorGeneral wtxl, such a loss "must lead to "one conclusion —that tho manage- " merit was not equal to tho require* "mcnte of tho situation." Over £10,000 -was lost on .the operations o£ tho trawlers, in spito of tho frequent contention of the advocates of Stato enterprise, when tho industry was started four yoars ago, that in t»o years it would provo a splendid investment for tho Government and the public. It is significant that in the caso of an industry such as this, which direct with the public, a heavy loss was mado. while a number of other Stato industneo. which Awl lax&oly

\v;ih S - iv <\ partments. are able to profit?. This circumstance cxritcs wonder as to tho prices •wliioli tho dt*partmcnts concerned pay for the St-atc-produced ;rouds v.ith which they aro supplied. In any case. hovrver. in >tat« businesses. ii~ in all others, tho personal courts ivrv largely frr success or otherwise, nrvi extvrienco has shown that v.:*!; singularly fw exceptions. Stat'• < mployment does not attract the '■est brains, nor mil out tho host work. ••Von cannot piint to n case." said Mr Lloyd ficorcrp to tin* Trado Union Congress deputation. which was urging tho Covernment -to nationalist* tho mines, •• where men work better for tho State* "than they do fr.r syndicate?." He pointed out that Mr Justice Satikey. •.* lio formed the majority cf one. in the report of his Commission, in favour of nationalisation of tho mines, pave his decision on thr* reason assigned by one of 1 !:e men's representatives:— "'Many "cf the workers think tluit they are • working for tho capitalist, and a strike bccomes a contest l>etwoon • labour and capital. This is much. " less likely to apply with the State as "owner, and there is fair reason to *'expect that the relationship between '• labour and the community will bo an improvement upon the relationship " between labour and capital in tho " coalfield. And j n a few weeks the groat railway strike—a strike aimed at the State, the employer controlling the railways, through the whole community- /rave the lie to that argument, it tailed at Home, bcause tho community 11 as greater than the strikers —a similar movement might easily succeed, under different conditions, and if State ownership is not in the main moro profitable than private, ownership, and il it tails to ensuro industrial peace, two of the greatest arguments in its favour—almost the only ones—fall to the ground.