STATE INTERFERENCE

Hokitika Guardian, 5 July 1928, Page 4

STATE INTERFERENCE

GOVERNMENT IN BUSINESS. AFTERMATH OF WAll. - [Ninetcen-Twenty-Eight Committee.] “AVe have been reminded that we are able to manage State railways, State steamships, State printing offices, State farms, and we know we have a long way towards a State bank. But I think we ought to draw the line at a State pawnshop.” These words arc taken from the “ Hansard ” report of a speech delivered by the late Mr W. F. Massey in the House of Representatives, just upon thirty-four years ago, in the course o! the second reading debate on the Goveriimeat Advances to Settlers Bill. They must not be regarded as the final pronouncement of the future Prune Minister upon the important principle. 1 lie was discussing. At that time he was only thirty-eight years of ago anc had sat in the House lor less than twelve weeks. It is significant, however, that even at that early stage in bis political experience he was disposer 1 to look. askance, from the economic point of view, upon State railways State steamships, State printing offices State farms and State banks. Whni ho would have thought of these undertakings to-day is not a matter for dis eussion just now; hut he, at any rate, would have realised that none of them lias yet paid its way in the sense ol bringing its expenditure within its m come. This fact need not mean all State activities arc undesirable" They stand apart, indeed, and in a different category from the cxistm harrassing and unfair interference with private enterprise, which is an evil o comparatively recent development. BEGINNING OF TROUBLE.

The trouble began, of course, with the opening of the Great M ar. I he Government and the people of New Zealand found themselves, practically without any warning, involved in r. state of affairs they never dreamed of encountering. Parliament was sitting at the time and did what it could to meet the paralysing conditions and circumstances. The position was aggravated by the approach of a general election, and though patriotism was exalted far above politics, to the credit of all concerned, the element of party strife remained. r ! he polling loft the parties so evenly divided that a Na tiofial Cabinet, representing equally both sides of the’ Mouse, was easily formed. Party dissensions ceased ami Parliament devoted itself with a stout heart to the prosecution of the Dominion’s share in the war. 'lhc life of the J-louse of Representatives was extended to five years and during that period a- considerable amount of “war legislation ” was placed on the Statute Book which was intended to' endure only riming the continuance of hostilities and the inevitable process of rehabilitation. This war legislation, maintained on the Statute Book long after the need for it has disappeared, and fortified by far-reaching ministerial authority, is largely responsible for the continued interference ol the State with private enterprise and the unfair and inefficient trading by local bodies. Laws and regulations which were brought into existence by the exigencies of the world upheaval and its aftermath have persisted through a decade of peace, hampering industry, discouraging enterprise and delaying national development. These are the conditions facing the country to-day. A GLARING EXAMPLE. The lengths to which the Government might go in this direction may be judged by a glance at the provisions of the Board of Trade Act, ns it stands on the Statute Book to-day, more drastic than it was even at the height o! the* war. This measure may he put into immediate operation by the “ Gov-ernor-General in Council ” at the instigation of the Minister of Industries and Commerce for any ol the following purposes: (a) For the prevention or supprespression of methods of competition, trading or business. (h) For the prevention or suppression of monopolies and combinations in or in relation to any industry. (c) For the establishment of fixed or maximum or minimum prices or rates for any class of goods or services. (d) For the prohibition, regulation or control of differential prices or rates for goods or services,

or the differential treatment of 1 different persons or classes of persons in respect of goods or services. (e) For the regulation and control of industries in any other manner whatever which is deemed necessary. It is obvious that these measures give the Government authority to do just as it pleases with any industry, trade 01 business within the Dominion. The fact that it has not exercised its authority to a greater extent is to its credit. That it has had any such auth. ority at all during the last seven or eight years is due to the apathy of the community which never can have realised the gravity of the situation. Now must come the long-delayed effort for the cmanication of industry and en lerprise.