STATE TRADING.

Press, Volume LXIII, Issue 19146, 1 November 1927, Page 11

STATE TRADING.

BUREAUCRATIC INTERFERENCE. BUSINESS" MEN EXASPERATED. CBD i»tekable indications were given .today's session of the annual to of the Associated Chambers of that business men are exasC ZZ »t the extension of the State', J"*L and of its activities in business. Git reference was made to an un3»«t conference held recently in Jigton, at which this development V folly discussed. " j remit on which Mr L. J. W. Gard.{/iddressed the conference was as /.Uoot: That this conference deplores "j, we increase in unfair Statu and krtWrtitie interference in private enZvrite and resolves to use its influence repeal of such legislation as and interferes with legitimate «id that to-day, more than ever fctfore *'« were faco t0 face with prob " iVL wh>«h could oui ? b6 solvefl by con " . -tnted and united efforts. Last 'reit'i depression brought to sonic cx- • j t0 tho surface some realisation f the great difficulties and hardships from which the business u-ud profesdonsl ncn particularly, and the countrr eenerally, were suffering. Had the ■tap of last year continued for another year or two, most of them would Jut« bad a fa" >dea as to how much gut* and bureaucratic interference was net only harming the prosperity of the Dominion, bnt was harming each section j tit business and commercial struc♦jrtfc For it teas only in times of adrtfgjty that the fnll effects of harmful U iJ detrimental, harassing Acts and jtgnlations were manifested. In a *riod of prosperity such as they were jiking forward to this year, the effoct <jll harmful Acts and regulations grid be ao minimised as no longer r »constitute a menace, which would ref rit in an accentuated apathy on tho \ «rt of the business and professional , to. Thug they would find, unless they I wm active, that the harmful and dctri- ; jaUI Socialist legislation which had I feci iicreaiing in intensity for the i.' tat t« years, cr more, aud was to-day j- mtti in detrimental State and bureauf tntie interference in private enterprise, l-Wjone farther than any Socialistic |- jgijm;GoYerninent would have dared to • ft and would continue to increase, fpbft period of false prosperity might '■ tanenruy blind them to the seriousMM of the position, they must not be ISl'tle oitrich and hide their beads £■&« land, and think that everything rii 111 right. , .??,... , - ':.'- United Effort Wanted. . Hera had never been a time when ttfttiontry had called for united effort af* than at tho present. Whatever! Htdifieolties were they should rcmcniVirthat practically nothing could be tMßptiahed unless it was by'active too' the parts of all sections of »nd commerce, speaker continued that he felt iSjhUtlv. convinced .that as long as (prunjinta or politicians could play tajfcnrn *r section off against another m er section, tbey felt perfectly mrt and safe as far as votes and their ma .were' concerned. With a united ejfj|to&*ianimous business and profess- [ httJiMM^ihei.. false security of. any i :eould be..overKvould be Able to •hfiupsatU /along lines advantago«w«ep|||Mi|perity of the Dominion, andfotSbaßyis. • The mere fact that • ■eahjWM'Jßirliament felt and knew that backing would eubhraip'tipeak forcibly and plainr/«4jl ttja mind, and not leave it to a , as at present. It lack of unity was **» to Jae apathy on the part of busi- •** aid professional men regarding JPthW PBtgide their own immediate W|m'Njbver before in the history had v Socialsuch a discover and check business men must unite to" potter palrties. » undertaking any united move •flhut fcajfohjps they, were faced with N» and sustained in*W*tt%id inonoy. Most business men *%mrarfr how harmful and unfair ■W.eomjetition. was to private enter-Wt-The importont points for conJwHonfwere; The-great menace of na'nhlie.Trust, the Town-Planning; Control Acts, the v Dolo TOia/lfotor Omnibus Regulations, tho jwJwDepartment, State Forests, ElecBoards, and the Arbitration *"*■'.. . The Arbitration Court *M working in a vicious circle which Mttlj tended to raise the cost of liv|V tat-tended to sot up standards *PW> applied only to the secondary *J*triea. Under normal conditions ■gi-WM always the tendency of tho jPjwary indnstries to menace the but with the aid of set up by the ArbitraJjj^yrtrt;and the Government, tho *•'**• ef wealth were seriously endanI«re4.

"Gwnot Support Government." ft %*- summing up the position ™w«r-o«t .Vow Zealand from a poli-w*l-Wtit of view," said Mr GardJ7> >« will find at least 80 per cent. jj ST'laiiiiiess and professional meu iW "»t they can no longer see jT**»y clear to support the Coates j**Wttent, which has been the last "J*? |5 *' l e Jong-continued and iiiS Ha »J hirmful Socialistic legislate M ™ has been the means of inState bureaucratic interferP, riTate enterprise. You will ST™*! that between 10 per cent, to if" cent, of our commercial men j2"J" t< » «p their minds to support on the cl a i ra t | iat if they are TO S oo ' 3l *'^' o legislation r*S let 4is at least have it passed jV" Proper people, and also that a i jr™*" Government could not have Jr**"* harm than our present Gov- ££**■ Their idea is that if a Government had attempted ; J* *P»t the present Government »ti^ e 't !t would nave aroused such ; w7* w opposition as would have I XtZ!:? °«* for all time. Of the 80 t teto* A Who are dissatisfied with the ■ErSi Hfternment, you will find that, A. J* 10 per cent, to 20 per cent ' * 7ft I<abour ' tbe GO P«r cent '> najr l wnt - will vote in favour of r. l^Z^P 6 ' Provided it is properly ' Vi^^* l " ex P r essed the hope that ifttsS^Sf 006 he!d in Wellington en would be backed officially ; »***ent conference passing the

lh* Public Trust ; ItflS 0 * *» the Public Trust Office, «aid that it was not his *»» *» u? depreciate the good work %C ™ e office, but to point oufc^ *H'3Li^J*?* 1 ?f ' te uu 8 e powers, it > *jta?j? Jwcoming a monopoly or a 'Mt»L r*„ true sanse of the word. i. %S.'y advertising the fact of :• the Pu M«c Trust tend- -• flttarit™ * n element of doubt on the L *, «sflS3Lw *u those interested out''i Tmt - Tne t™ sl was fegliifiSrg^ wttitutions. In regard to §ifßß?i£2/i on * ne ' aw m * an t' one Spflifn *** to the Public Trust

I and another thing when relating to all those outside the Public Trust. . . , To obtain the State guarantee an investor m the Public Trust had to place tos funds in the common fand for which he obtained from 4i per cent, to .5 per cent. The Public Trust loaned that money out for 5 per cent, to 7 per cent., thus giving it huge profits. For the year 1921, the amount in the conimou fund equalled £13,918,906. At a profit of only one per cent, this would give £139,189. But it must have obtained much more because the profits from the common fund that vear wore £144,056. On top of this "were tlm moneys obtained by commission and charges on sums handled outside the common fund, which brought in £98,036, or a total profit of £212,192. The amount earned was £242,192, the ' expenses £213.106, leaving a balance ] of £29,086, which, presumably, went to erecting magnificent buildings and creating enormous reserves.

Mr C. P. Agar (Canterbury), in seconding the remit, said that as associated Chambers they could not go into party politics. Unless they, as business people, did not play their part in the shaping of the legislation of tho country, they would find themselves adversely affected by that legislation. "We should *see that we support the men who can state the case from our point of view," ho said. "We know that members support Bills they do not lielievc in. We know that members of the Houso refrain from criticising Bills bocause of loyalty to Party. In time legislation may tend to improve the status of the community and not tend towards Socialism." (Applause.) Mr Agar suggested that the matter — a most important one—should be referred to the executive.

Mr W. Machin (president) paid representative men had urged the, placing of such a remit on the agenda paper. Delegates were divided on the question. All of them considered that New Zealand should curb the Government's tendency to introduce legislation which interfered with business. Tho Association was not a party organisation, but Clause.3 of their objects provided that they might take a close interest in politics. Should the Association take a more definite lino, and discuss parties as well as measures? If the remit was adopted the executive would take it as an instruction that the; must oppose such subversive legislation reaching the Statute. Book in futilre, and endeavour to have repealed somo of that affecting business.

Socialism a Drug. Mr D. Seymour (Hamilton), Wi>uwting the motion, said tliat tiio legal profession huu been tor a ion-; unio Keenly aware of t-lie disadvantages, referred to by Mr Gardner.; The chamber could count on the hearty support of the professional community. Socialism might properly be regarded as analagoui to a chug, i'or the Juss lew years it had been so consistently injected that the people were in danger of becoming driig addicts. It was ;u----jooted slowly and insidiously. Tho Arbitration Ace had been in ic-rce ."for thirty years, and tho community had been driven to a close examination <>t tho Act. Socialistic legislation created a desire for more and more legislation of the same kind. Like a drug, it meruit loss of individuality and of initiative. (Applause.) Mr T. H. llice (Wanganui) said,the gathering in Wellington had been very representative. lie could not help noticing Mr Gardner's appeal to them to get together. This was the way io strengthen their hands. Mr A. G. Luhn (Auckland) moved tho following addition to the motion: "And, further, that in any business already entered into by the Government, tho Government should be subject to. the same laws and regulations, taxes, and conditions as the privatetrailer." He thought the words "huge"' and "unfair" should be left out. They should not go too far in such an important matter. Mr. Machiu said they did -not' like superlatives, , but, f ;tljerp'jia4.: ; h«en. a great'leap' forward in this Tiind of legislation. Mr A. H. Mackrell seconded Mr liunn's proposal. , "It is ngainst the unfair competition of State enterprises that, this .remit is levelled," said Mr A. F. Wright (Canterbury). He instanced the case of, the Public Trust Offico, which was entrenched by legislation condemned by Judge after Judge. They "would lie amazed by some of the things done by tbe Public Trust Office.

Public Trustee's. Wide Powers. Mr Wright quo ted. some of the Public Trustee's powers. People could be treated ;>s trespassers on their own properties. It was the wrong" principle of placing such powers in the hands of* "a Government official that they were fighting. If it was right for a Public, Trustee it should ho right for a private trustee. Mr Coates's speecn in the House, when introducing the Public Trust Office Amending Bill, would have led no, one. to. believe that it contained such far-reaching provisions: The Prime Minister's speech was quoted from Hansard. The Common Fund enabled 'the' Public. Trust Office to make huge profits out of the administration of estates which should go into the Consolidated Funds, instead of promoting the extension of the office. The Public Trustee's last annual report "dealt with a surprising number-of subjects, such as dairying and town planning. Members should closely consider the effect of legislation, and the hands of members should be strengthened in the matter of legislation subversive of the public good. Mr H. P. Caughey (Auckland) said he agreed with, the spirit of* the resolution, but it should be couched in niorfc moderate terms No good purpose could be served by passing such a drastic motion. It was unfortunate thai, the Public Trust Office had been singled out. Its foundation was a wise piece of legislation, and the Depp.rtment had a stabilising effect. He was prepared to accept Mr Lunn's addition, but would move the fofe lowing amendment: "That this con-., ference expresses concern at the increase in State interference in private enterprise; and . emphasises the fact tli.it such interference is economically unsound, and not in the interests ot the Dominion."

Legislation Undermining Enterprise. Mr H. S. E. Turner (Canterbury) said he hoped the conference would not accept any of the amendments*, which had the effect of watering down the remit. Not many of them realised until times, were harder how much the legislation they were condemning had done to undermine private enterprise. A great deal would be lost unless a halt was called. . - c Mr A. H. Mackrell said the mmd of the Conference was one. They always objected to unnecessary State interference. It was necessary lor them to keep aloof from Party politics, or from allying themselves to any one Partv Ho did not agree that the sec-ondai-v industries could not be developed alongside . the primary industries. Politicians represented and were a true reflex of the people who put them in Parliament, and if they were not up to a certain standard they could not complain. The public should not be led to believe that they were against the Post Offico and such institutions. What he feared was the stifling of enterprise on the part of people with capital to invest. Capital was being scared away by the legislation which had been passed, when wo badly needed it. If the discussion was reported and circulated, it would have some effect. Mr A. J. Seed (Wellington) supported the remit. Mr Lunn's addition was not necessary, he said. He instanced the case of the Government sawmills. No business balance-sheet was disclosed, but a few figures in the Railways Statement showed what these enterprises were costing the country.' Timber was being sold at any

price whatever, so long as private enterprise was cut out..

State Porest Service. Some of the objects _ of the State Forest Service were laudable, but the methods by which it made its timber sales were' against the country's best I interests, because of the restriction of ' areas. Development was checked by ' such restrictions. The Department's j planting operations were to be commendcdV but whether they were in the I right places was another-question. All .! of these activities were shackling thai kind of enterprise which had so much to do with the early development of the'country. Mr A. 6. Wikinson (Canterbury/ spoke in support of the remit. The Public Trustee, in his discretionary j powers, had .withdrawn his support from our chief industry in making his investments. Thus our primary industry lost stimulation. . Mr O. H. Weston (New Plymouth) said it was a question of educating the country as a whole. Socialistic legislation gave a stimulus at first, but it had a back kick at the end of it. Unless they were prepared to see giant monopolies in practically all businesses in the country, they must oppose such a development. Unfair competition was to bo fought at all times. "I think we would be better without any Government institution," he said Mr J". B. Richards (Stratford) said ho was against the Government going into business, unless it was on exactly the same conditions as private enterprise. If an undertaking was operating with unfair advantages, it must get the bulk of the business, and drive out those who were more competent. It would be ridiculous for them to say: "We have Our railwavs, and we won't have the lorries " 'The latter might be a better mode of internal transport than the railways. Even in the lending of money the Government competed unfairly. It had driven out competing concerns, and now could not cope with the demand. He would back private enterprise against the Government every time. Mr Lunh said his addition to thf remit had the object of strengthening Mr Agar said they might accept the addition, so that unanimity might bo reached. Mr.-Ma chin said he was prepared to move the remit on behalf of the executive.

It was carried unanimously. Mr W. J. Butler (Westland) moved that the executive be given power to take any 3teps to give effect to the motion. , In view of the discussion Mr Caughey withdrew his amendment. • Mr Machin: Tho wording was not harsher than the facts. It is not' a Party move. What we are concerned with is principle and measures. Mr . Wright moved the following amendment.

"That it be ah instruction .to the executive, (a) to ally itself to the growing movement amongst business organisations in New Zealand, to take definite action to stem the tide of Government interference in business for which the State is not fitted; (b) that the whole question of Government trading activities should be considered by the executive 'with a view to bringing down a comprehensive report."

Mr Gow said the amendment was quite superfluous. "I don't think so," said the president. Tho movoment which had taken place in the country was joined in bysome of the most. important commercial bodies in tho country, from the associated banks downwards. It was not a question of joining up with a political body. It was impossible for them to do so under the Association's constitution. •. Mr Kice said they should come out into the open, and should not be frightened to speak their mind 3. Mr Agar said the conference need not fear association with the. movement which bad been mentioned, as'it contained all the men who were competent to be .chairmen ,of. : Chambers of Commerce.

Mr Wright withdrew his amendment. Mr. Agar then moved that the conference give the executive power to take such steps as will give effect to the motion.

Mr Limn seconded pro forma, and tho conference voted unanimously in favour.