WELLINGTON TOPICS.

Hokitika Guardian, 2 October 1922, Page 1

WELLINGTON TOPICS.

STATE AND MUNICIPAL TRADING THE GOKERXMENT’S POLIQY. SI'ECIAI, TO GUARDIAN. WELLINGTON, Sep 29. Surprise luis been expressed in some quarters at no itientiori of State aiid Municipal; trading undertakings being made in the Taxation Amendment Bill introduaed in the House of Representatives on Tuesday. The Prime Minister is known to bq favourable to bringing these uneclrtakings under the operation of the laud, and income taxes, and it was thoilght lie might effect his purpose of a clause in the amending Bill. But apparently Mr Massey lias preferred to make use of the Finance Bill, which will, lie produced a little later, on, and - s o dissociate the remissions of taxation fr.oni tliq additional imposts. Meanwhile he lias, reiterated very dearly his vicpvs oil tfi'o question. He believed himself, lie said commenting upon Mr lYilt'ord's concern for the “State business departments,” that such undertakings could he controlled better by private individuals than by the Slate, and that, in any case, they should pay their fajr share of taxation. Tins, he added with emphasis, was tho policy of the Government. CHANGED PUBLIC OPINION. Public opinion in regard to State and Municipal trading undertakings lias undergone a very remarkable change during the last few years, and particularly during the last few months. This lias been due partly to the indiscriminate advocacy of the irresponsible Labour Party, and partly to the failure of the extremists’ theories in practice, hut mainly to a critical examination of the facts rind the spread of information on the subject. Mr Massey’s belief that business and trading undertakings can he better managed by private individuals than hv the Statq or by the Municipality has boon justified over and over again in this aiid in other countries. There are, of course, such public services ns railways .and post and telegraphs, that properly may be made ’ State monopolies, hut beyond this limited field private enterprise, subject to the law of the land; reigns supreme in every department of trading achievement. This conclusion has been forced upon many former apostles of public ownership, and lm's become (lie creed of the' great majority of observant and well-informed people. UNFAIR COMPETITION. Probably Mr Massey's judgment in this matter Ims Imen even more influenced by the unfair operation of municipal trading undertakings than >y the unsatisfactory results obtained from State undertakings of the same character. The exemption of liiunoipal undertakings from taxation has govon them an enormous advantage over private undertakings, and but for the inherent defects in their management they would have been hound to oust all opposition. But the exemption is so obviously unfair, both to the competing private concerns and to tho great body of taxpayers, that anyone Inking an unbiassed view of the position must condemn its continuance. I lie exemption from taxation of nnv municipal undertaking in AVellington or Auckland or Christchurch, or in anv j other centre, means inevitably that 1 some portion of the burden that should ‘ l.e borne by the local community is he-i mg shifted on to the shoulders of the ' genera! body of taxpayers who can obtam no possible advantage from (he on-| torprise. Tn Wellington there is the : spectacle of municipal electric light. ! treed from taxation, competing with! proprietary gas burdened with every j impost the taxing department can de- i vise.

ATTITUDE OF PARLIAMENT Nine or ten years ago, no .Governnient would have dared to talk of taxing State and municipal trading undertakings. Sane Labour in those da vs was moving warily towards the notionnhsatum of quite a number of public utilities. Three years ago sane Labour ans supplanted in Parliament to a argo extent by extreme' Labour, and the early indiscretions of the new I arfy, which included wild talk about the nationalisation of everything under the sun. set neonle looking a little e oser than they had done before into the results, obtained from such State and municipal trading enternrises ns already were in operation. Knowledge necessarily brought about a ehnnge of opinion, and the public without reject, mg the beneficent theories of rommunitv control lost faith in their efficiency in practice. The present, ; Parliament, though admittedly only a j rough and readv reflection of public opinion ns it oxistor] three vonrs ntyo. if* j sufficiently in touch with current : I bought to appreciate the new position, i It will give effort, to whatever the Prime Minister may propose, and Mi Vnssov has made his own views perfect plain. The nnliry of tl-c Government will prevail. j