GOVERNMENT SUBSIDIES

Dominion, Volume 13, Issue 286, 27 August 1920, Page 4

GOVERNMENT SUBSIDIES

EFFECT ON COST OF LIVING. Tho nnnunl debate between the Wellington and Christchurch Accountant Students' Societies was held in the Accountants' Chambers on Wednesday night, the proposition for discussion, beins: "That the system of Government subsidies for reducing tho cost of living to tho consumer is economically un-' sound." Mr. C. A. L. Treadwell acted as judgo. The Wellington Society, which took the affirmative, was represented l>y Messrs. P. L. Porter, S. V. Astin, and T. A. Barrow, The Christchurch representatives were Mesßrs, S. J. Hearu, F, N; Lawrence and D. Smith. Mr, B. W. Hunt (president of the Wellington Society) occupied the chair. He remarked that the" contest was the fourth of a series of debates between tho two societies. The Wellington speakers contended that the system of subsidies did not actually reduce the cost of living; that it hindered industry and production; and that it militated generally against tho welfare of the community. The amount paid to the producer by way of subsidy was raisetl by taxation; and the taxation imposed had to cover incidentally the cost of administration, which was no small item. It was fallacious to maintain that tho. poor wan Benefited under the Biil>. sidy' system at the expense of the rich man. Tho Christchurch representatives argued that tho subsidy system did lead to increased production, whatever might bo said to the contrary. Since increased production reducfid tlie cost, of living, the system was economically sound. They also emphasised that all German trade had 'been built up on a system of subsidy. Subsidies had reduced the cost of the necessities of life, and hiad prevented profiteering and inflated prices, _ The judge gave his verdict in lavour of the Christchurch Society by 314 points to SOB scored by their opponents.