POLITICAL TALKS

Sun (Auckland), Volume II, Issue 614, 16 March 1929, Page 6

POLITICAL TALKS

LESSONS FROM QUEENSLAND THE STATE IN BUSINESS (Written for THE SUN by D. Jones, M.P.) VI. The theory that the State can do much better in business than private enterprise is a very attractive one. Wonderful stories can be told how waste will be eliminated, unemployment will disappear; there will be no more rich and no poor, Lazarus will be no longer at the gate of the rich man.

Socialists, full of fervour and inexperience, attack the individualists for attempting to stop the alleged march of progress. If the tale unfolded had any chance of materialising most of us would be glad to join the Socialist movement and bring heaven to earth, but it never does, and every succeeding generation of Socialists starts preaching the doctrine afresh, as If it were new. On the other hand, a sweeping condemnation of State enterprise in toto is neither reasonable nor wise. The post office Is an example of a service which most of us would rather entrust to State appointed officers than to private individuals, leaving out of consideration whether a privately organised corporation could receive and deliver mail matter more efficiently or at less cost. Considerations of secrecy in public and private correspondence have an important bearing on the question.

It sometimes happens, also, that the State must step in to correct injustice, but speaking generally, the State almost invariably appears at a disadvantage when it enters into competition with private enterprise. SITATE-&WNED BUTCHERS’ SHOPS

The Queensland Labour Government has given State enterprise a real good trial over many years and now frankly admits that the result is the reverse of what was expected. In 1927 the Government had 17 sheep and cattle stations, but the financial results were so bad that it was decided to sell out and cut the loss. It was reported in June of that year that seven stations had been sold and ten still remained on the Government’s hands. With all the advantages that the State could command and freedom from taxation, the sponge was thrown in. The State butcher shops, to provide cheap meat, were started with the best of intentions, but the Minister of Labour and State Enterprises nearly two years ago, when addressing the annual meeting of the Australian Workers’ Union said he did not think the Government would start any more butcher shops, because the workers had not patronised them. At Winton a shop had been bought and fitted up at a cost of £5,000, yet the workers passed it by and traded with the private shop. At Emerald 400 persons signed a petition for a State butcher’s shop and when it was established only 39 customers traded with It. State mining showed up much wdrse than meat and could only be referred to as disastrous. I have taken Queensland as an example because it is at our doors and these schemes have been carried on under a sympathetic Government which did its utmost to make a success of them. THE DANGER OF A- BELIEF

It is a dangerous policy to start out with a belief and to shut your eyes to the lessons of history and the laws of economics. The Labour Party harbours the belief that salvation lies in State control, and that a State Bank can provide all the money and cr.edit required. Sir Joseph Ward informs the 192 S Committee he is going to give further freedom to private enterprise, so we may expect some lively debates in the coming session and interesting divisions. “THOU SHALT HOT’ Tfie 1928 Committee is in direct opposition to State interference. Its policy is “Thou shalt not,” but the committee cannot succeed with only a policy of this description. State interference has occurred largely because vested interests wanted too big a slice of the pudding for themselves and an insistent demand from the public that Parliament must step iii and provide a remedy.

It is idle to deny that years ago capitalists took advantage of Labour’s unorganised condition, and Capital is really responsible for much of the restrictive legislation that all parties are suffering from to-day.

The 1928 Committee can do really effective sei-vice by addressing themselves to the problems of industry, commerce and distribution. Let them set. their own house in order, recognising that the onus is on every man. to-day to show that he is rendering an efficient service at a reasonable cost to the community. As a member of Parliament in constant touch with all shades of opinions I know there is a great deal of effective work the committee could do it it would; if it is not done then the demand on the State to interfere will continue and will not be denied. DAVID JONES.