The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, NOVEMBER 10th, 1921. STATE CONCERNS.

Hokitika Guardian, 10 November 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, NOVEMBER 10th, 1921. STATE CONCERNS.

'I hi: age-old question cf how State concerns compare with business firms,

and the factors governing the administration of either, with their relative effect in the sphere of public efficiency, are reviewed by the Public Service Commissioner in his annual report to Parliament. ‘•There is an impression,” says Mr Yerschaffelt, ’‘that there is a wide dissimilarity between the conduct of Government affairs and private busi-

ness. 'I his idea is usually founded on premises only partially true. It is assumed that private business is invariably efficiently managed, free from interference and changes of policy, but that Government Departments are overstaffed with incompetent officers, pro subject to continual political interference, and that, if only a business

man had charge of affairs, many savings could lie effected. While it is obvious that, in any large organisation, there is always scope for economical readjustment, what critics overlook is that, in the nature of things, tlieie is a wide distinction in principle between State enterprise and private busness, in that the main purpose of the one is public well-being ami the other individual gain. It is a fallacy to believe that, heeaii.se a mail has been suceessliil in amassing a great personal ‘fortune, .lie is therefore best qualified to lay down principles of public adniiuistralir.il or iiiiam-e. The elieif function of profit-making in the world of business is astute competition, whereas the chief function of the public administration is wise co-ordin-ation. Although there is a wide distinction in principle, in method the difference is not so evident. In this icspect, critiis fail to take into consideration the magnitude of the organisation. A comparison of the methods adopted would disclose that there is a greater dissimilarity between a large business and a small one than between the organisation of a large Government Depai tuieiit and a private concern of comparable size. Indeed, it can be claimed that in many Departments modern methods are in "vague which compare favourably with outside business firms. It may safely he asserted that of the faults which are ascribed at limes to the administration of Government Dcpaitinciits, all of them, and in some cases worse, could be found in the administration of many .successful business concerns. The fact that public activities are

more open to public review tends to magnify any deficiency in public administration. thereby making it appear to contrast unfavourably with tile conduct of private enterprise."