WELLINGTON NEWS

Hokitika Guardian, 12 February 1929, Page 3

WELLINGTON NEWS

STATE TRADING UNFAIR. [Special To The Guardian ] WELLINGTON, February 9. Interference by the State or State trading blights trade, and tbe slogan of tho late Government of “ less politics in business and more business in politics ” was more honoured in the breach than in the observance, and the manner in which that Government secured control in many business directions was the main cause of its downfall. Chambers of Commerce and prominent business men, financiers and industrialists have repeatedly called attention to the withering effects of State interference, but without effect on the authorities.

On Monday last Sir George Elliott, Chairman of the AucklandTlas Coy., stated that by Government regulations passed in 1919 the Board of Trade had the liberty to interfere with the business, of any individual or company. “It can interfere with your business to-dav if the Board of Trade officials think fit. So in 1924 they did think fit, and interfered with tbe gas industry. They founded their interference on some Acts in the British Statute Book, one dated 1859, tbe other 1871, and anothor in 1920. From this basis they decided that gas companies’ should have their meters tested by Government inspectors, their gas tested by a similar authority, and their prices subjected to supervision by Government officers. This was in 1924. Since then your gas prices have not been, altered. The quality has not been changed. Gas users have received no benefit, hut your company has had to pav inspection and other costs totalling £1432.” Here is a clear instance of unnecessary and harrassing interference on the part of the State and the sole object appears to be to provide very easy and profitable jobs for favoured individuals. The Board of Trade Act has been roundly condemned, but the late Government who passed the Act seemed wedded to it. That Act gives the Government of the day power to interfere with not only the affairs of a public or private company, but also with the affairs of private individuals. For instance, the Government acting under the powers conferred on it by this Act can by Order-in-Council, fix the salaries of sav all bank managers, or of any other section of 'the community. When tbe case of tbe Crown v. New Zealand Distributors was before tbe Court evidence was given by Mr McDonald, who as Secretary to the Board of Trade, when the Act was passed, that under it the powers of the Government were very wide and it coni «! evo.it“ dismiss the Legislative Council. Is it any wonder that financiers and capitalists are timid about launching out into enterprise. This is the basis of the prevailing want of cqnfidencc. It is the lack of confidence that has led to the accumulation of funds on fixed deposit, instead of being used by the owners in enterprises, in industries and in developing the resources of tho country. Unemployed capital means unemployed workers, for capital ana labour are closely related. It should lie the function of the State to encourage the capitalist big or small, to make use of his funds and so ensure full employment for all those who can be employed, and a continuation of economic progress for the Dominion. This question of State interference and unfair trading on the part of the State should be taken up vigorously by Chambers of Commerce and other similar organisations.

“Before very long: we may have to wait until next session, the Government is going to ask the House to tackle this question of interference by tho State with the trade of the people.” That welcome statement was made by the Prime Minister at a public function in Wellington early in tbe week, and we may be sure that something will be done in this matter for Sir Joseph Wal'd already lias given ample proof that his Government can and will carry out promises. Furthermore the Cabinet comprises some level-headed business men who must have realized the amount of harm that is done by State interference in trade and the business affairs of tbe community. .

Sir Joseph Ward made it very clear in his remarks that the present Government realised the harm that was being done income taxpayer and the ratepayer. It would strengthen the hands of the Government if the Chambers of Commerce, the various associations of manufacturers and industrialists publicly discussed the matter and passed resolutions demanding reforms indicated by Sir Joseph Ward. The less we have of State and Municipal trading the less taves will we have to pay for State trades do not pay taxes and the community has to find the money for them. The Prime Minister could, under the Board of Trade Act. carry out his intentions with respect to State trading, hut perhaps he prefers a more orderly procedure in dealing with public affairs.