A COMMERCIAL BUGBEAR

Auckland Star, Issue 38, 14 February 1929, Page 8

A COMMERCIAL BUGBEAR

THE STATE AS TRADER.

WHO IS TO PAY TAXES ?

VISITORS' ADVERSE CRITICISM.

The position taken up by the leading commercial men of the Dominion was strongly voiced at the Auckland Chamber of Commerce to-day by Mr. H. T. Merritt in the course of his presidential address. Under this head Mr. Merritt said:

"This chamber is not opposed to State trading in principle, particularly relating to essential services, providing it is subject to the same laws, rates and taxes which are enforced upon the private trader. At the same time, if the principle of State trading is extended to any appreciable extent, what is going to happen to private capital, and who is going to pay the rates and taxes necessary for the country's welfare? Dr. Milbatik Johnson, a recent visitor and a. noted economist from the United States, gave as his first reason why he was afraid he could not recommend anyone to invest capital in this country that there was too much interference in business by the Government. Another distinguished visitor critically stated: 'Indeed the Dominion Government is a paternalistic institution. So far as I could find there is 110 industry or enterprise in which it does not meddle. There is a regulating board for every occupation. The tendency seems to be more and more toward paternalism, or rather a form of Communism.' He went on to say: 'The curse of New Zealand to-day, as I see it, is the everlasting interference of the Government with producers of all kinds. Instead of removing obstructions, the Government daily addd further hurdles for the farmer and business man to vault. I asked more than fifty New Zealanders why local industries were lagging behind, and in every case the answer was the same.' He lays the blame for this on the excess of politics and Government and public service employees, tvho, in order to justify their existence, dabble in the affairs of the people quite outside the ordinary accepted business of Government.

' "Surely," concluded Mr. Merritt, "something is fundamentally wrong when visitors utter criticisms like these."