FACTORIES CLOSED

Hokitika Guardian, 7 January 1929, Page 7

FACTORIES CLOSED

WIIICX STATIC IXTICimCKKS. VICTORIA'S ICX PICK IKNCE. In tho annual report issued by the directors of tin* Henry -Jones Co-oper-ative Limited, it is stated that for many \eais past the development ol tho fruit industry m Australia has been seriously affected by Govern meat interference and “ the evil has now attained sin h proportions that your directors feel they should no long er remain silent.” Tl-e reference is to the fruit-growers’ factories which have been started in Australia with financial aid 'from the Victorian Government, financial aid granted without proper authority and aggregating {.'“50.000. It is recalled that recently the Auditor-Genera! for Victoria referred to this assistance as “ an innovation in public finance of comparatively recent origin, contrary to the procedure governing the control of public money.” Commenting upon the position Jobson’s “Investment Digest” says:— “ Henry Jones’ companies pay in State taxation alone more* that £23,000 per annum and the object of the directors in drawing attention to this government interference is to impress upon shareholders the extent to which their own industries are being afflicted m order to pay the deficits accumulated by Government trading enterprises. It will soon be impossible for private enterprise to continue in various brandies if this interference continues. Solely as the result ol this interference tho hoard last year liquidated the old established business ol Headley's Pty. Ltd., and it is now engaged in liquidating two more of the company’s manufacturing plants in Victoria, and this policy will probably be continued should Government persist in their pernicious course.

“State trading not only results in financial loss both in capital and working costs, hut it brings about chaotic conditions in the industry itsoli generally causing price cutting and the marketing of goods without, regard to the cost of production. AY hen a firm of the standing of Henry Jones Cooperative Ltd. finds it necessary to liquidate its enterprises as a consequence of this State action it may bo pointed out that the results go a great, deal further than the actual activities of that firm because the result of their withdrawing from the field of operations must affect the primary industry concerned, in this case fruit growing. It-is notorious that the company's "south . African and New Zealand branches have continued to prosper year by year because they are not afflicted with' the disease of Government interference. Governments have only to continue in this course long enough for industrialists to take theii capital out of the country and invest it elsewhere.”