The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 11, 1926. THE FUNCTION’S OF PUBLIC AUTHORITY.

Hokitika Guardian, 11 May 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 11, 1926. THE FUNCTION’S OF PUBLIC AUTHORITY.

In a treatise bearing on the progress of the nation prepared by the School of' Economics' in conjunction with the Canterbury .Oham'rerl of. Commerce, there is an interesting reference to

various phases of business enterprise as alfeeted by State control. The subject is epitomised rather in the final conclusions of the article which refer to the particular functions of public authority, and the conclusions arc so well expressed that it will be of interest to many readers to reprint portions of the article referred to, which we do now: The primary and most essential functions of Government, whether national or local, are political. They consist in providing for the necessary regulation of the group life of the community. They include tile determination and protection of tho rights of citizens, the regulation ol contracts, the settlement of disputes, tlie provision of standard weights and measures, etc. During the last halfcentury public authorities have passed far beyond this political sphere, and have imposed their control to an everincreasing extent upon the world o' business. It is universally recognised that some part of this increase in public functions has been very beneficial in securing greater social'welfare. But the extension of Government control in the sphere of private business, as Vlistinct from administration of public enterprises, lias failed to secure isimi?ar benefits. On the contrary, there is much evidence that it is responsible for considerable real loss. This is the net result of interference in the delicate and complex adjustments upon which modern production and marketing depend. Fault is to be found mainly with the habit of asking and expecting too much from our political organisations and public servants. The responsiblity for solving the problems of business must rest with those directly engaged in and trained to business. When they fail to achieve workable business solutions, it is inevitable that appeal should be made to political authority, which provides solutions based on political expediency rather than on business considerations. For the greater part of last century it remained an article of political faith . 'that tho chief task of the Government was to determine the broad lines upon which their citizens were to live and to leave them as free as possible to do as they thought best within the limits so laid down. Because it was believed that individuals could care for themselves and their dependents better than any public authority was likely to do because it was hold' to be in the best interest of society at large that each member should undertake the fullest responsiblity for himself, and so develop to the fullest extent his eaacity to serve both himself and society a- well, the limits to individual liberty were set as widely as possible, and the fullest scope was giAen to that spirit of self-reliance, initiative and enterprise which lias always been the pride of Britisli co—munities and which lias been mainly responsible for the growth of the British Dominions. There are few today who would support that political philosophy in its entirety. But in New Zealand we tend to forget the measure of real truth it contained. Consequently we have developed a degree of State paternalism which has made dependence upon the State a habit with many sections of our people, and has discounted the real value of individual self-relianre and independence among the rest. Unless a marked change occurs both in public opinion and political practice", this development must occasion loss. For no country, or community can thrive and progress to the fullest extent under these conditions. The gains of State control are immediate, concentrated and appreciated; the losses are deferred, dispersed and intangible. But they are none the less’ real, and State interferenc in the realpi of private business usually means that in the

long run the State takes away far more than it is able to give. If this Dominion is to attain the heights of progress .and prosperity which lie within its easy reach, then the general conditions must be made such as will enable it to progress and prosper. Public authorities can give their best service to this end by providing, as far as poses.ble, the solid foundations of security and stability upon which alone the business of the country eaii reach its greatest efficiency, and by aiding those responsible for the organisation and management of business with the best advice and the fullest information obtainable. But direct interference must fie reduced to its lowest possible limits. For it restricts, retards, hampers and distracts the business world in the performance of its own special function, the maintenance and extension of production and exchange. If private enterprise is to discharge that function satisfactorily—and there is at present no practicable alternative method in sight —then it must lie given the maximum of freedom to do it in its own way. Some regulation will always bp necessary and desirable in the public interest, but regulation should be elastic, easily borne and consistent. The liarrassing effects, the insecurity and the losses that follow upon incessant interferences and changing control can only hinder the production of those goods and services which constitute the real wealth of the country.