STATE IN TRADE

Rotorua Morning Post, Volume 2, Issue 537, 22 May 1933, Page 6

STATE IN TRADE

TREND OF SOCIAL.ISM ADDRESS TO ROTORUA CHAMBER OF COMMERCE. NEED FOR ACTION. An indictment of Government interference in business was made in an •address to the Rotorua Ghamber of Commerce on Friday night by Mr. A. Heany, secretary of the Associated Chambers of Commerce, who emphasised the need for freeing private enterprise in trade from negative restraints byi the State. Mr. J. Pearce Luke, of Wellington, vice-president of the Associated Chambers of Commerce, who was also present, congratulated the Rotorua Chamber on the success of the ama'l- | gamation that had been effected with the Retailers' Association, and stressed the need for unity of action by private traders to conserve their interests and the interests of the country as a whole. Mr. Heany, in his address, said that , in these days of struggle for every1 body, the most severe, most enduring and most momentous contest that was in p'rogress was that being waged by the individual against .the State for

the right to employ his abilities m private trade. The assue was the survival of private enterprise in trade, or the ultimate taking over by the State of the means of production, distmbution and exchange. Tabulation of Grievances. "On the one hand we have private business striving to produce wealth and employ workers, while on the other hand the State is doing its best tr. nrevent this being done," said Mr.

Heany. "These activities of the State fall under four heads:— (1) Restrictive legislation; (2) the exemptions and privileges enjoyed by State and locai body trading concerns in connection with taxation, rates and other eharges and conditions; (3) the growth of State departments beyond their original functions, to the detiament of private trade, and (4) harassing regulations and their arbitiary enforcement by over-zealous ofiic als. Particularly in this time of deyression, when all possible freedom and encouragement should be given to the exercise of dnitiative and enterprise in the individual, we find these qualities smothered by innumerable acts of Government interference in business,- which make the carryingon of trade, industry and commerce a matter of increasing difficulty, and in some cases an impossibility. "The general public has little or no idea of the extent of this evil, which is still growing steadily. They suffer only the effect and do not realise the cause. In this country we have deiiied the State and petrified the individual. We have sacrificed the effiedent for the inefficient, and now we are reaping the meagre harvest. The whole trend of our legislation is towsrd complete State Socialism, and we cannot have that and wealth also. "Through these activities of the State a relentless pressure is being exercised on business. One can piclc in tances at random of harmful State coutrol. Under the Transport Act, road services all over the country are bong deliberately put out of action by the State; because of the powers of absolute control granted to produce bonrds, certain products may not be ex .'orted except through semi -State ch..nnels; through State interference w.-h private contracts, the people may not mvest in mortgages except on cc.iditions determined by the State; th r State, by doing its own public works, prevents the growth of the puvate engineering industry; by the exircise of the Board of Trade Act, Cc mmercial Trusts Act and Cost of

Living Act, it is creating monopolies an.l restraining trade; through its lei.ding departments, it has crippled pi.vate lending; it is rapidly becorning the largest lawyer and land agent; it is a substantial architect; it talces p1 -.vilege dn the courts of law as against private citizens; it is using pT.vers to forbid the erection of new p._cure theatres and dairy factories, ari so on almost indefinitely. Jt is e.-;raordinary that there should be t:i.s continual conflict betwfeen private enterprise and the State, when the l - o.te depends so utterly on private (..terprlse for its revenue. Servant to Master. "No doubt a prima facie case can l e made out for all these State activit :s, and others like them, but the f ieater the measure of control, the Lmaller the field for private endeacontinued the speaker. "The l cate, from being our servant, has beeome our taskmaster. In many d.rections we are being controlled by the unseen hands of the bureaucracy. Departments ask for legislation by the unseen hands of the bureaucracy. Departments ask for legislation and regulations and get them. The businessman who objects is looked on as an impediment, private trade is overridden and the country suffer s accordingly. These remarks are directed at 'i neither Governments nor individuals, but it is well that we should know where we are heading. National recovery will be assisted not by the

imposition of any new restrictions on trade, but by the speedy* removal of existing ones. "Our national character and the

basis of our economic iilei are oemg undermined by the supersedence of the State over private initiative and enterprise. When private trade has . been weakened and even in some cases eliminated by this sort of suppression, the State will enter into the conduct of further services for the people, protesting the while that since private enterprise cannot serve the people, it must do so. When tha-t happens in trade, the priee of the ' State's services will be the price of - the inefficiency of a State-conduct-ed monopoly which has no competitor ' with which to contend. Prices will be ' higher, and quality and service lower. Az:d who will there be for the State to tax for its revenue? The taxa"bie earning capacaty of the people is already seriously imp-aired by un- ! fairly competitive State and local body enterprise. It is an astonishing • thing that the flagrant violation of private rights that has been going on • for years, resulting dn injury and destruction to old established businesses can be tolerated in a British country.

"Because of the advantages the State allows itself and local bodies in trade, we are being hoodwinked as to the real value of our publicly-own-ed trading concerns, and until the illusion of the competence of the State in trade ds subjectecf to' the acid test of equal conditions, we must continue to suffer heavier taxation and a higher cost of living than need be, as well as the hobbling ,of the employable capacity of private enterprise. It has become a matter of national urgency, as well as of common justice, that, first, existing legislation and regulations governing trade should be thoroughly overhauled; second, that publicly-owned trading concerns should be made to pay rates and depreciation, and customs, land, income and general taxes the same as private' enterprise; third, that the foreign expansion of State enterprise should be chscked; and, fourth', that the excessive zeal of State officials should be subordinated to the public interest. A free discussion ensued, and the matter of financial assistance to the Associated Chambers was dsalt with. The visiting speakers were accorded a vote -of thanks for their addresses.