STATE TRADING.

Auckland Star, Volume LIX, Issue 94, 21 April 1928, Page 4

STATE TRADING.

MINISTERIAL ADVICE

At the annual meeting and dinner of the Wellington Chamber of Commerce, the president, Mr. C. M. Bowden, said on the question of Government trading:— "Attention has been directed from time to time the growth of trading by Departments of State and of local bodies, many of which operate with direct loss. This places a double burden on taxpayers, as not only must the loss be met out of the general funds, but, by reducing the field of private enterprise, legitimate trading profits are curtailed. The field available for income taxation is thereby reduced, and therefore the scale of rates must remain high. Similarly, exemption from local rates throws additional burden on the general body of ratepayers. It is now generally recognised, the world over, that where trading by Government or local authorities is permitted, such departments, in all query, should be subject to the same liabilities, taxation, conditions, and restrictions as are imposed on the businesses with which they compete." Referring to these remarks, the Hon, A. D. McLeod, Minister of Industries and Commerce i said that personally he was a strong individualist, and believed that as long as there was open competition the best results could be obtained by individual trading. Community trading was more general in municipalities than with the Government. To bring about a change the atmosphere had to be created. If it was considered that community trading was not conducive to success there were opportunities for bringing about a change of policy at the municipal election.