The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JULY 24, 1923. PRODUCTION AND PUBLIC POLICY.

Hokitika Guardian, 24 July 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JULY 24, 1923. PRODUCTION AND PUBLIC POLICY.

Tub Department of Economics at Canterbury College has been issuing of' : late a" series of bulletins dealing with economic subjects. 'I lie latest deals with national progress, so far as it is governed by production, and the public policy regulating production. The conclusion is reached that production is of first and fundamental importance in theeeonomie problem of any conn try. Such being the case the general demand of a community for higher staidards can be satisfied only by increased and better balanced production. Here then is the genesis of all progress. and we can well understand the insistent drive for 'more and more production. The call for more production, however, does not come from economists only. Others, and politicians I in particular, are always calling for production, more production, and still more production. It has been made a political slogan as it were, yet we do not know, that the Governniept of tins country lias done all it can to assist in the realisation of its high sounding slogan. At the time of the general election much was to be beard of the slogan, and to keep it company, we had another slogan, “less Government in business, and more business in Government.” As a matter of fact, the process of Government by regulation which has been creeping in of late has been too obviously State interference in business, and the effect has not been to further the economic conditions within the country. Rather to the contrary, there is a serious cheek if not absolute brake upon some business enterprises, with the result that to-day, with the country entering upon a neriod of slump, the situation is likely t> bo felt acutely in different quarters. The public policy‘which assists to govern progress—or- rather should—is wanting; and in more places than one the result of government interference either by regulation or prohibition, is affecting very much the natural trade of the country. The situation as it presents itself from the economic point of view, is summarised in the bulletin referred to above, and the conclusions are worth quoting as a learned commentary on the facts, delivered from minds free from political leanings of a partisan nature. The conclusions considered dispassionately are a direct charge against Government administration, and call for real reforms to give New Zealand an opportunity to save itself from the conditions brought about by undue State interference with business. There are many features of

this State interference, says tlio bulletin, which might hinder progress* and discourage production. A wide-spread and complicated system of licensing various businesses has grown up, which, in most cases, restricts the scope and development of business concerns. In one case the Government, without advancing any reason, has piciented a larn-e concern from realising its mmket value, and has seriously impaired the financial security of an industrv of parmount importance to the Dominion. The restriction of rents, the moratorium on mortgages, discriminating taxation in favour of public securities, etc., have had an enoimous influence in directing the flow of investment away from the moie pioductive channels, and are in part responsible for the drift of labour to the towns where most of the money invested is now spent. The Arbitration Court, originally intended as a tribunal with the most elastic powers for the settlement of disputes, has .become largely an institution for the rigid State regulation of wages, and has thereby encouraged the fallacy that industrial incomes depend on the arbitrament of the State rather thaii on the productivity of industry. The State too lias used its power of taxation, and of regulation of private businesses to prevent fair competition and to buttress public monopolies, the efficiency of which can he tested only by their ability to withstand competition on even terms. And most of this has been'done, not by Parliament, but by means of regulations issued from bureaucratic Departments, which are largely independent of Parliament in important matters of detail. These are hut some leading features of a mass of regulation which has grown and is still growing, which requires for its administration a corresponding and expensive increase in public servants, and which, though some of it is certainly desirable and necessary, lias for the most part the effect of seriously hampering the growth and progiess of business and industry in general. Within our Dominion we possess resources undoubtedly capable of .greatly increased productivity. It should he our aim to achieve the fuller and wiser’ development of these resources, for onlv by such achievement can we improve the standards of general welfare amongst our people. At present, tliis development is being seriously hampered by misdireced State activities. It is time, therefore, that the policy of State interference was reviewed in the light of its long term effects.