COMMERCIAL SECURITY

Sun (Auckland), Volume II, Issue 595, 22 February 1929, Page 10

COMMERCIAL SECURITY

HANDICAP OF STATE TRADING SIR JOSEPH WARD’S VIEWS (From Our Resident Reporter) WELLINGTON, To-day. “In tho United States and Canada there has been tremendous prosperity, and I am satisfied that New Zealand, whoever its rulers might be, will have to institute a policy of enterprise and courage before it deiinitely enjoys the measures of commercial security and general prosperity these countries enjoy.” Thus Sir Joseph Ward, Prime Minister, voiced his belief in the need for a keener appreciation of the business activities of the country. He was re_plying to a deputation from the 1928 committee, which placed before him the problems arising from State trading. An official report of the proceedings, prepared by the committee and authorised by the Prime Minister, has been released for publication. SUPPLY AND DEMAND J he members of the committee held that the greatest possible scope should bo given to the working of the law of supply and demand, and the development ol‘ individual initiative and ability. State institutions and public bodies whose activites tlouted these fundamental principles, the committee maintained, cramped not only private enterprise but also national development. Mr. C. P. Agar (Christchurch) said the trend of legislation during a period of years had been toward a socialistic state, with very grave results to the community at large. Sir Joseph Ward, in replying, said his personal feeling was that"the Great War and the new and grave problems it brought in its train were largely responsible for the strange and difficult conditions that were besetting some of the younger countries. NO TAXES, CHEAP CAPITAL Sir Joseph said he could not with justice to Parliament go into' the subject as fully as he might otherwise have done, but lie thought lie might, without any impropriety, point to the incongruity of a man in business paying all the taxation that was going while some State department close byin the same line of business paid neither income tax nor land tax, and traded on cheap State money. No one could make him think that in any of the cities of New Zealand it was a fair thing for municipalities to compete against ratepayers in their own town, when the municipalities paid no licence, no income tax, no land tax and no rates on the premises they occupied. Until there was a mutual recognition of the rights of every party the progress and development of the ‘Dominion would be more or less retarded. He hoped, with the assistance of his colleagues, the members of all sections of the House and the fairminded public to reach a solution of the problem in the near future.