CHAMBERS OF COMMERCE

Hokitika Guardian, 17 October 1929, Page 3

CHAMBERS OF COMMERCE

annual conference.

AUCKLAND, October 14

The annual conference of the Associated Chambers of Commerce opened to-day. PRESIDENT’S ADDRESS.

In moving the adoption ot tlie report and balance-sheet . the president, Air C. if. Agar, spoke at some length on tho subject of the Arbitration v-OUl't.

“We are repeatedly told that the organisation of the Associated Chambers -is non-political,” he said. “Notli.ng that we can do,;* to protect the interests which we represent can be regarded as non-political. The true position is that the organisation and what it represents is non-party, and whether it be Reform, United, or Labour, the representation so necessary for a full understanding of our position would be made to the Government in power, irrespective of its political views. 1 recall that at the opening of tho last conference, one of the speakers referred to the fact that it was the duty „of commercial , community to send men to Parliament .n order that, their .views could be presented by those best qualified to do o. When one recalls the fact that the Parliament of the Dominion is a .louse of Representatives of. the, various interests of the community, it Joes not seem to me -that business interests are not playing their full wirt in the activities'- of the public iife of. this Dominion, when steps are not taken to have some representation of our important interests in !.he House of Parliament. Of course, anyone standing to represent business interests would have difficulty in securing election—firstly, because of the lack of understanding of our desire to help the people as a whole, and, secondly, because such interest would of necessity have to be nenparty to be effective. However, it is felt by many that business interests should never touch politics, but those who make that statement would be first to admit that legislation and regulations affect business, and therefore in my judgment, the question naturally arises—How long can the business interests remain outside that which undoubtedly affects them in their everyday business activities? “In recent years there undoubtedly has been too much legislation and too much interference with business, resulting in a lack of confidence, the effects of which are being felt to-day. In fact, I think , it can safely be stated that the Government of the Dominion recognises that there is a state of unrest and uncertainty existing, which is adversely- affecting the free, flow of mpjicv; and the gen- . ‘era! prosperity of the country. Many organisations have made representations from Time to /.Lime on this matter. Very good work has been done by the organisation known as the ‘1928 Committee.’ (Your Council has also made representations and should, I believe, continue to do so, hut if the representations of business interests given from outside the House are not heeded, -then we must ask why. If our complaints are reasonable, our suggestions sound and in the general interests, it can only be that the consideration they deserve is not given because of a lack of understanding of our problems and difficulties, or that party considerations are allowed to outweigh economic principles. “To give another illustration of the effect of sectional activities, may I refer to the two most important sections of industry—-primary and secondary. There is no doubt that tho progress and financial stability of .this Dominion have been brought about by the success of the- primary Producers. a.nd T think it must he admitted that the country could go along quite sucesfully if it confined itself to primary production and those industries which could be successfully established in this Dominion without the necessity for high tariff protec. tion. On the other hand, we see a growing tendency to establish secondary industries and froin time to time for appeals to be made' to the Goverhment for more tariff protection, and a position quite unsound is likely to result from this state of affairs. It- is a commonplace that if secondary industries in this Dominion are going to be, protected by tariffs, then the primary producer is placed at a serious disadvantage unlcris lie also receives consideration and 1 protection. The primary producer Cannot continue, yenr in year out successfully to sell his products on the world’s unsheltered markets end to purchase an ever-growing quantity of his requirements on the sheltered mallets of secondary industries. H'.s pound which under equal trading conditions would purchase twenty shillings worth of goods is gradually being reduced with the increase of protection, until to-day the burden is almost too great. In Australia they have adopted the Paterson scheme for tho protection of the dairy fanuov. to cover the increased costs which he is called upon to pay because of the high protection granted to secondary industries. Butter is sold throughout Australia at 4d per lb m excess "of its exportable value. The money so obtained is used to pay *t grant or bounty on its exportable surplus, so that tlie primary producer in Australia receives the world’s value for his produce, plus a grant to cover his increased costs brought about bv tariff nrotection to secondary industries. In my judgment the time has arrived when any additional tariff protection to secondary indus-

tries must he offset by a corresponding relief being afforded to primary producers.” Mr Agar said that it had been suggested that lr.s remarks should embody impressions gained on his recent visit ’to America, but, as his trip was a very flurried business one, he did not.,feel that his knowledge of, and asi&k iation with, the conuiCions of the United States of America weio sucu that be would eiue to ex pres, them from the chair. H'W'ver, this much could be said—the Uni tec •States Was a greati and wouui-rfui country. “Its government, ns business, its whole organisation, are based on trade for tlie United Slates, r lie said, “and when one recalls how the products that we wish to soil ti. that country are detained unde, heavy tariffs, it brings home to invery directly the need for spending our money where it is likely to ’benefit the purchasing power of the people whom we are asking to receive, market, and consume, tlie commodities ol this country. In many respects the United Siates commands portions of our trade because of the nature of our requirements—such as oil and petrol—and also, because British manufacturers have failed to produce articles, such as automobiles, which are ns satisfactory lor the conditions of this Dominion 'as are the ears manufactured in Ainericn. But, all things being equal or more than equal, i returned" impressed with the necessity for copying America and adopting tlichr methods of trade within the Empire.” '

•The president offered the suggestion that during the coining year tlie Associated OlHUniberaf’ 'of Commerce should endeavour to,.assemble a conference representative of the primary interests and the manufacturing and secondary interests of this country, ■add that they should have, a fret and frank discussion on the troubles of to-day and the dangers of tomorrow

INDUS! liBilAL .SYSTEM. Closer eo-operation between employers and employees in industry was urged at the conference, and a remitwas carried recommending the Govment to convene another National Industrial Conference, similar to that held in April and May of last year. It was felt that the last conference was productive of much good, and further mutual discussion of problems associated with industrial employment would ensure beneficial relationships of capital and labour interests. Criticism was levelled at the Arbitration system j the contention being advanced that it was a bar to progress

CASH ORDER TRADING. It was decided to recommend that legislation be enacted to bring into operation cash order trading m accordance with the suggestions made by the recent Commission of Inqiurr into the system. COMPANIES ACT.

• The conference favoured the mo lent ising of the Companies Act, ant 1 carried a Canterbury remit wiping that legislation to this end he I you gin down without delay, parr.collar attion to be paid to the protection of the public in respect to new cornpan. flotation* TAXATION.

Taxation formed the subject of several remits. The question was opened on a remit being submitted by Wellington delegates, expressing regret that increases in taxation had been found necessary in order to balance the national finances, and expressing the hope that the Government would relieve the added imposts on trade

"lid industry. Special reference was made to the primage duty upon practically all imported articles. The remit was carried.

A remit urging, the Government to consider the rapidly increasing public expenditure and taxation with a view to effecting a definite programme of economy was also carried. A proposal was advanced by Mr A. Rankin (Wanganui) that land tax should ho abolished in its entirety and that income tax should be levied on all sections of the community. After a lengthy discussion the remit was altered to read: “That this conference is of opinion that wherevet possible income tax should be levied iiistofid of land taxation. This was carried.