STATE SOCIALISM.

Auckland Star, Volume LXIV, Issue 115, 18 May 1933, Page 8

STATE SOCIALISM.

j "LANDSLIDE" COMING? BUSINESS MAN'S WARNING. "UNITED ACTION" URGED. Is Xew Zealand "menaced by a landslide towards State Socialism" ? "Gentlemen, we've got to face up to it, whether we like it or not," said Mr. J. Pcarco Luke, vice-president of the Associated Chambers of Commerce of Xew Zealand, and 1932 president of the Wellington chamber, in an address to the Auckland chamber to-day. The danger, said Mr. Luke, could be combated only by effective untiy 011 the part of ;.It business interests. Introducing his subject, Mr. Luke said that he had some diffidence in speaking in detail on some aspccts, in view of the fact that the International Economic Conference was just ahead, and considering the responsibilities of those who were in charge of our destinies at the present time. We were moving towards a stage in which industry and commerce were tending towards socialisation. There had been some criticism of chambers of commerce taking part in politics. lie claimed that if the chambers were to function effectively they must interest themselves in politics. Whether or not they touched party politics was another matter. The time had come when business men must stand shoulder to shoulder to meet a very great menace.

In the extension of social services the State had assumed the responsibilities which were rightly those of private enterprise. The question was how best to check the tendencies of the State to take charge of every industry. The State could not of itself create wealth. It was actually only the aggregate of individuals who as such created wealth. "Unbalanced Development." Over the past 30 to 40 years, we in Xew Zealand had followed through a system under which we had an unbalanced development. To-day the position was that one side liad been developed as the result of Government assistance, whereas the other side had been strangled by all sorts of inhibitions and regulations. Over the whole of the period that this social legislation had been going on to develop agriculture, there liad been a restriction of what had been wrongly designated as secondary industry. Our problem to-day was not only to pay debts, but also to find employment for our people. Mr. Luke said he knew of no better way to solve this problem than through the agency of chambers of commerce. When the Economic Conference had dealt with major problems which incidentally affected us we wpuld still be I left with our own particular internal problems. With the lowering of the tariff walls the world over, the necessity to meet competition as it exists to-day-would still exist. In order to maintain oiir production and sell our goods in the world's markets we would have to reduce our internal costs and this would mean a curtailment of social services.

Ufiless we recognised that we could not maintain our standard of comfort we should inevitably have to face a worse position than we had to-day. Justifying the activities of the Associated Chambers of Commerce, Mr. Luke said that the responsibilities of employers were definitely laid on their shoulders. Until members got together in united action bringing together factional interests they could not stem the rising tide of socialisation of industry, a movement that was going to sap the very vitals of our national being. "Back to a New Level." New Zealand had to get back.to a new level. The people who were in business —who gave employment—were the ones who would bring it about. The fact that a man was in business implied initiative, vision and energy. They must all concede that the Civil Service comprised a fine class of men and woman, but the fact was that they had to work along restricted lines fixed by legislation which limited their efficiency. They could not therefore act as leaders to bring the country back to prosperity. A vote of thanks was moved by Mr. H. T. Merritt, past president of the Auckland chamber, and carried by acclamation. Mr. Harvey Turner, president, occupied the chair.