STATE ENTERPRISE.

Auckland Star, Volume LIX, Issue 198, 23 August 1928, Page 10

STATE ENTERPRISE.

WONDERFUL POSSIBILITIES.

IF CHARGES WERE RAISED. AN ATTRACTIVE PICTURE. (By Telegraph.—Parliamentary Reporter.' WELLINGTON, Wednesday. When the Prime Minister spoke during the financial debate he drew an attractive picture of future revenue from hydro-electric undertakings which could help taxpayers to the extent of many millions annually if present charges were maintained. His theme was amplified to-day by the Minister of Finance, who pictured a tax free community some day if a particular policy is adopted in regard to State enterprises, though he showed some doubt whether the consumer would not demand prompt shares in dividends by way of reduced charges.

The Hon. W. Downie Stewart pointed out that when his L'eader referred to large prospective profits a member asked if charges would be reduced, and that was the whole point. The original

Socialists advocated State ownership, and pointed to the enormous profits which private individuals were making. It was claimed with some show of reason that, if the State took over these enterprises it would secure the profits, thus enabling the Government to reduce and ultimately abolish taxation, the community being able to pay its way from profits, and that social services would be greatly amplified. If the original socialistic principle was observed with all our State enterprises, Mr. Stewart said, immense profits would be reaped, and there was no end to the financial possibilities, assuming the profits were up to predictions. How to Pay the National Debt. If one took a moderate view that consumers were entitled to half the profits, even, then in one generation there would be sufficient revenue to pay off the non-reproductive debt of the Dominion, reduce taxation, and greatly increase our social services. This would mean, of course, that for some years we would adopt a somewhat Spartan regime in our financial policy, with the public foregoing a substantial reduction in charges. HoVvever, it would put New Zealand in a splendid position. Mr. Sullivan: Would that not place an undue burden on one section?

The Minister replied by referring his questioner to the experience of Dunedin, which owned its hydro-electric service, and sold power cheaper than elsewhere. Personally, he did not- see why all the benefit should go to the consumer, because the taxpayer, who found the capital, should get some of it. He had been told by the head of the Postal Department that if he was allowed to charge New Zealanders the telephone rates payable to private enterprise in America for a few years, the Department could do great extension work, reduce its capital liability, and put it in a position in which the country would have an enormous asset. However, Mr. Stewart concluded, he recognised that the user wanted the whole of the benefit, though there was room for an intermediate policy, which would produce gratifying results in the future. But it seemed to bo out of the range of practical politics.