STATE TRADING.

Auckland Star, Volume LIX, Issue 165, 14 July 1928, Page 11

STATE TRADING.

TENDENCY GONE TOO FAR. APPEAL TO BUSINESS MEN. L OUNTER-MO VEMENT ESSENTIAL. (By Telegraph.—Own Correspondent.) WELLINGTON, Friday. The Government's tendency towardnationalisation and government by regulation had gone too far, and every man in business should do something for the movement to counter that tendency, declared Mr. C. M. Bowden when he was being farewelled bv the executive of the Wellington Manufacturers' Association, on the eve of his departure on a tour abroad.

In recent years there had been a ! tendency in the direction of State and municipal trading, said Mr. Bowden, and a tendency toward nationalisation and government by regulations. This had happened in the timber industry and carrying. Electrical traders had been hampered considerably by the operations of power boards, so that they were almost being driven into the streets. The same sort of thing had been going on in other directions, and the opinion was growing that it had gone a little bit too far. He would like to take some share in countering that movement.

While there were some enterprises in which the Government and municipalities could engage, there were others in which their entry could not be accepted without reserve. Where they did engage in business it should be on even terms with the private trader. They should have tho same responsibilities—liabilities to pay rates and taxes, and meet other overhead charges—that limited liability companies and private traders bad to meet. They should be subject to the same regulations. If that were done, big opposition to State trading, as carried on to-day, would be considerablv reduced.

Mr. Bowden compared the position in Xew Zealand with that in Britain, where the Government had interests in an oil company and wireless, while in New Zealand the Government had larsre interests in the Bank of New Zealand. But they were ou an equal footing with other enterprises of the kind. Something might be done also »n *l-» way of educating the people to the fact that marketing boards were not a panacea for all troubles did ti" + know how many co-operative marketing boards there were in New Zealand While along certain line- tb<*v did good work, thev were not a panacea for industrial troubles. The adjustment of tariffs was another important subject, and vital to manufac-

turers, but it did not follow tliat the best interests of the country would be served bv an increase of tariffs.

The ultimate and final test was the economic development of the country. The question was one which was receiving attention in other countries of the Empire, and he looked forward to the day when there would be one strong Empire economic unit.