RECENT LEGISLATION

Hokitika Guardian, 25 March 1926, Page 3

RECENT LEGISLATION

BUSINESS MEN INTERVIEW PRIME .MINISTER. WELLINGTON, March 23. A large deputation of business men waited on Mr Coates to-day to protest against Government interference with private enterprise and unfair competition by the State. Mr M’fntosh, one the speakers, said that they were dealing with matters of principle rather than specific instances. During the latter part of the Reform. Tarty’s regime there had been a marked tendency to pass legislation which was restrictive of that libertv of action -n vitally necessary to trade and commerce. Some of this legislation is not only opposed to tho Reform Party's traditional policy, hut has actually established principles of the Socialist Party’s platform. Wo admit that, during the war, a great deal of Government control and regulation of trade and other activities was not only justifiable, but necessary, so

as to concentrate all our resources for the one purpose of defeating the enemy. But we say emphatically that all the world over leading business men and political parties have recognised that these artificial controls must be removed so as to let trade and commerce develop on natural lines. Since then the Reform Party has, if anything, extended artificial controls and State interference with private enterprise. This general trend is causing grave uneasiness in some directions and it looks as if legitimate private enterrise is losing its control and being subjected to such restrictions that it cannot possibly carry on. Me desire to seriously emphasise that such a feeling of anxiety is perfectly reasonable and that a very small feeling of uncertainty is sufficient to divert the flow of capital, which is notorious-

ly sensitive. “Recent happenings are hound to affect the investment of British capital in some directions in this country,” Mr M’lntosli concluded. " We. therefore. seriously ask you, in the national interests, to make an announcement that you intend to amend the produce control laws by making an Order-in-C'ouneil necessary belore the compel-

sory rlowers are brought into operation. This is not only a- matter for the producers or the produce merchants; it is a national matter and as such should not ho lett in the discretion of boards. It is only on national grounds and the broad matter of principle that wo have dealt with it to-day.” The Prime .Minister, in reply, stated : “'Hie principles you have expressed to-day have lieen expressed previously through the Press, and by those interested in trade and eomnvrree. I would, however, like to point out that you have not brought the Hour millers along with you. The bigeest problem we have bad to deal with, as a Government. was the question of whether emit ml should continue in the wheat industry. We decided that it Should not. That seems to me to have given effect to what- you have been speaking about. The next tiling 1 notice is that you have a representative of the Sawmillers’ Asociation with you. You are all asking that there should be no regulations with regard to trade that would interfere with it. The sawmillors are anxious that we should have more duty on imported timber and that means regulation. The Government has to use its judgment as to what is in the best interests of the community.’’ The Aleat and Butter Boards had a very wide interest to everyorii?, and he wanted to tell them that when his Government took office tlie legislation was in operation. The Butter Board was set up liy legislation and certain powers given to the producers to Handle their own industry as they thought fit. “There may be various opinions as to whether the Meat Board have made proper representations with regard in their industry, particularly as it affects the true transfer of existing freezing work licenses. We can quite easily remember what lias happened in other countries in connection with the freezing industry, and we can always say in New Zealand, that, if certain interests were considered to press minimally against the best interests of the producers, the producers themselves made a recommendation that the Government considered it and agreed to it That applies to the transfer of freezing works licenses. To allow our country to he monopolised by any outside concern would not be in the host interests of the country. The principle of paramount importance must be the prndiurrs’ interests. The prosperity of New Zealand, which is an exporting country, must depend upon the producer increasing his production. and getting good markets. With regard to freezing work’s, T think the Government attitude is known and by that we stand. There may he some who will say that- those who have got shares ought to be aide to realise a oertain amount for their shares, and that these should be considered. So they should and so they will be. There is no need for the shareholders to bo in a panic at all. Tb? Government had t oeonsider interests in which' the savings of a. largo number of people were interested. The national interests were the Government’s paramount thought. With regard to the Dairy Board and control, the representations of the deputation would have very immediate and careful consideration. Apart altogether from any interests that might bo affected by that industry being taken over, they had to remember that, whatever was done must not he a failure. If it were then it would he a set-back to the whole of the industry and the rest of the population would lie very gravely affected. He had asked, and lie asked again, that the producers of New Zealand should he perfectly certain that they were at least fairly unanimous in connection with the absolute control proposal. His concern at the moment was to know whether the arrangements that were being made were such that would bring about tfie desired result in that connection. The Minister of Agriculture and lie himself were now making complete and exhaustive inquiries. It would never do to have a tiling ol that kind started without proper business arrangements to handle the whole of the sale of that produce. In regard to the question of eompetitionT Air Coates stated that the Government Life Insurance Department, the State Fire Office. State Lile and Accident Office and Public Trust Office might all fairly lx- considered business operations on the part of the State. The Government had _no intention of repealing that legislation. These institutions had been brought in to serve special purposes, and had done good service. They had regulated the price. It had never been intended that the whole of electric trading should lie handled by power boards. I He thought that his colleagues present I agreed with him that competition should he perfectly fair. It might take some little time to bring it about, hut it could be done. A complete system of overhaul had been established in the Government Departments and it had had the very important effec-t of showing the Government where savings could he made. They did not "ant huge central Government, knowing full well that it was the people of New Zeaand who had to pay for it. In remud to “less Government in business, the Government’s special concern aas not whether a firm existed or went out. but whether New Zealand’s interests and credit were kept up to high-uatei mark.