“UNFAIR COMPETITION”

Sun (Auckland), Volume III, Issue 796, 17 October 1929, Page 11

“UNFAIR COMPETITION”

STATE AND LOCAL BODY TRADING WORK OF “1928 COMMITTEE” “That this meeting of Auckland business men pledges itself to sup- j port the continuation of the work undertaken by the 1928 commit- j tee, and to be carried on in the future by the Associated Chambers of Commerce,” was the resolution unanimously carried at a well- j attended meeting of Auckland business men yesterday. The meeting was called by the 192 S committee for tlie purpose of discussing the work carried out since the committee’s inception, and to discuss future activities to be carried out by the Associated Chambers of Commerce. Air. Albert Spencer, president of the Auckland Employers’ Association, presided. Some examples of the work that had already been done by the committee were given by Air. C. A. L. Treadwell, of Wellington. The 192 S committee, .he said, was formed for the purpose of combating a continued growth of unfair State and public body competition with private enterprise; the growth of bureaucratic regulations and interference with legitimate business by State departments; and to secure the repeal of special legislation which curtails and interferes with legitimate private trading. POLITICAL SUPPORT Air. Treadwell said the committee had not only received encouraging support from Air. Coates, but also from Sir Joseph Ward when he came into office. Sir Joseph said he quite realised the incongruity of a situation that permitted non-ratepaying local bodies to compete unfairly with ratepaying business men upon whom the country depended for a large share of its revenue. The committee had done good work in assisting tlie banks by having the amount which local bodies could take on deposit reduced from £ 5,000 to £2,000. Referring to power boards trading, he said there was a general feeling that the power boards were carrying on their trading departments on the principle of “What we lose on the roundabouts we pick up on the swings.” He felt quite sure that if proper trading accounts were kept, it would be found that many so-called profitable transactions were really .losses. In regard to retail trading by the State Forestry Department, the committee had also received an assurance that its trading activities would be considerably curtailed in future. The committee also found that the Government Printer was unfairly entering into a field of trade for which the Printing Department was never intended. This, he was pleased to say, had been stopped. The prohibition of C.O.D. trading, facilities which the Post Office had given to the detriment of many business people, had also been stopped by the committee. Mr. Treadwell also complained of the commercial activities of the High Commissioner, particularly in regard to the purchase of material for the Government. These purchases were made on the best wholesale basis, and the goods shipped out to New Zealand duty-free. This proved an immense obstacle to the traders in the Dominion, who found it impossible to tender against such competition. The invasion of the legitimate rights of tho architect, the dentist, the doctor, and others by Government activity was also stressed by Mr. Treadwell, who invited further support from those affected in order to prosecute tho work. POWER OF CIVIL SERVICE “One has been amazed at tlie powers conferred upon the Civil Service by what is called government by Order-in-Council,” said Mr. A. F. Wright, of Christchurch. It said a great deal for the sanity of the Civil Service, he said, that the wide powers given it have not been productive of greater evil. One shuddered to think what might have happened with Government Departments given such unrestricted control. Wherever there was discretion in an Act, and the New Zealand Acts were full of it, there was a big danger of arbitrary government. In New Zealand he thought there had been a distinct trend toward the Continental system of government. Government departments had an enormous advantage over private traders, said Mr. Wright, and it would be regrettable if the individualism which had played such a big part in building up the Empire was submerged under departmental trading. Personally, he did not think that even Socialism could do as much damage to private business as an extension of tlie facilities for departmental trading. The desire to stand behind private enterprise* against Government trading was evident in the community, concluded Mr. Wright, and he felt sure that that desire would once again be expressed at tlie poll if any attempt were made to facilitate State opposition in business. FUTURE ACTIVITIES “The ‘1928 committee’ took upon itself to provide a necessary link between the various conferences of the Associated Chambers of Commerce, and attempt to enunciate the policies expressed at the conferences,” said Air. Stronach Paterson, of Wellington. Tho question had now come to a head with the decision of the Conference of the Associated Chambers of Commerce to carry on the work. The “192 S committee” will hand over its files and revenut and all the information collected, he said, and individually they would also do their best to help the conference to carry out the work. There was a promise that the work would be energetically prosecuted, but this could not be achieved unless tlie Associated Chambers had the wholehearted support of the business men. This year, with the exception of one very generous gift from an Auckland organisation, no funds had been received from Auckland. Further funds were needed to carry on the werrk and he appealed to the business and professional men to provide them with £SOO or £6OO within the next few months in order to help the movement along.

The resolution pledging support was moved by Air. T. It. Procter, and seconded by Air. B. G. Stephens.