ADMINISTRATION OF BUSINESS

Press, Volume LXXXI, Issue 24711, 31 October 1945, Page 9

ADMINISTRATION OF BUSINESS

—_♦— CLAIMS OF PRIVATE ENTERPRISE OPPOSITION TO STATE CONTROL "In New Zealand we have built up a State .where the pioneers received every encouragement from the State in support of free enterprise and initiative—a State where initiative, work, sacrifice, and thrift received the fullest encouragement; that , atmosphere must be recreated if we' are to progress," said the president (Mr J. B. Stewart, of Auckland), in his address at the opening session of the Dominion conference of the Associated Chambers of/ Commerce in Christchurch yesterday.

"If we are to create that atmosphere, we must co-ordinate the stand of the businessman with that of the farmer, remembering that farming is the major enterprise of New Zealand," he continued. "The commercial stability of the country rests on the successful disposal of the country's ex-, portable production. It is essential, therefore, to. unite with them in the development of free enterprise. If we are to carry the burden of debt under an equitable distribution we must have more production, and we must have more people to carry it." Farmers' Support Welcomed Mr Stewart said manufacturers and commercial men welcomed the support of the farming community in a desire to implement free enterprise, and it was important that they should work in the closest harmony. It was difficult to speak with restraint of -the position as it existed; but a large proportion of New Zealanders still realised the need for hard work, thrift, and sacrifice. However, people must regain the moral standard .of their forefathers, with a strict adherence to the tenets of their faith. Then, with a complete co-ordination of these, and a policy of free, untrammelled enterprise, there would be reward for the ambition and initiative of the individual, and protection for those unable to protect themselves. The main ideal of the Chambers of Commerce organisation was the advancement and development of the cause of free, independent, and private enterprise, said Mr Stewart. In recent years, however, this ideal had been obscured by a certain false glamour that had in many people's eyes surrounded advocacy of the doctrine of State control. This control was being imposed upon practically the whole of New Zealand's life, and its sustenance was obtained under a cloak of class hatred and distrust. It might be that New Zealanders were forgetting that in Europe the doctrine of State control was imposed upon a people, and that it was necessary to fight a long and arduous war to free that and other peoples. The policy of Stat*, control or National Socialism was a progressive one; unless its progress was stayed, it became more aggressive and oppressive in its development until the time came when its power must be broken or the nation see the error of its ways. It had" been fashionable in certain quarters to denounce free enterprise and capitalism, but instead of these being the enemies of the people it had been shown that they were the great allies of the United Nations at. war. It was the savings of the people, capitalists great and small, that provided the wherewithal to win the war.

State Planning: Under State control we had the institution of large-scale State planning, which by its application exerted a tyranny over the lives and industry of the people said Mr Stewart. *■ It operated completely against initiative and individuality. Many aspects of State control were covered by a liberal use' of the word "freedom" to publicise and advance the doctrine of planning, but could freedom exist where there was large-scale State planning? What was required was that private enterprise should be freed from controls, which were ouite apart from the laws and regulations that supported its advancement.

"There must not be a privileged class, protected under law. who by their actions can transgress without penalty, and as a result of these transgressions bring suffering and loss upon other members of the community, employers and workers alike," said Mr Stewart. "The right to strike and go slow has developed into a. menace to the prosperity of all, and too much valuable .time and money have thus been lost to this Dominion. • "The man who is prepared to set a better standard and a larger output should be encouraged by higher remuneration in proportion to the bet-' ter standard and pace. Private enterprise is concerned to see that its employees receive suitable remuneration; but if there are those who are prepared to do better, private enterprise is prepared to reward them by additional remuneration."

Mr Stewart added that, -since the war was now over, restrictions, rationing, and controls should be lifted as soon as possible. Referring to the equitable distribution of profits, he said that a profit reserve was not only a protection to an employer; it was also an insurance to an employee. Undue distribution of profits to either employer or employee must inevitably strangle industry. It was essential now to press for a substantial reduction in the burden of taxation, said Mr Stewart.