GOVERNMENT IN BUSINESS

Evening Post, Volume CXI, Issue 70, 23 March 1926, Page 8

GOVERNMENT IN BUSINESS

COMMERCIAL MEN PROTEST

DEPUTATION TO MINISTERS

MR. COATES ON DAIRY BOARD'S POLICY

"In some directions it looks as if legitimate private enterprise is losing its control and being subjected to such restrictions that it cannot possibly carry on." This was the keynote of a statement made.by a big deputation representative of business interests throughout the Dominion which waited on the Prime Minister (the Eight Hon. J. G. Coates) and other Ministers of the Crown this morning to protest against Go- ■ vernment interference in private enterprise, and unfair competii tion on the part of State and local body undertakings with private ■ | concerns. ! ' Particular reference was made to the proposed introduction of absolute control of the dairy industry by the Export Control Board in August, the deputation asking that the law should be amended to provide that such control should only be enforceable by Order in Council. The Prime Minister stated that the Government agreed that State and private competition should be placed upon a fair basis. Arrangements were in train to that end. So far as dairy control was concerned, both hi and the Minister of Agriculture were ascertaining from the Control Board what arrangements were being made for the disposal of our dairy produce. They had no statutory light to do this, but in the national interests they wished to make perfectly certain that no risks would be run by the inaugura- '. tion of the system of absoluto control. The deputation was representative of the sawmillers, chambers or commerce, drapers and clothiers, bootmakers, nurserymen, woolbrokers, stock and station agents, electrical traders, and firo and accident underwriters. Besides the Prime Minister, the Minister of Agriculture (the Hon. O. J. Hawken) and the Attorney-General / (the Hon. "W. Downie Stewart) heard the representations of the _^f deputation.

it ««'We wish to make it clear that we are dealing with matters of principle rather than specific instances," said Mr. A. Macintosh. "During the latter part of the Beform Party's regime there was a marked tendency to pass legislation which is restrictive of that liberty of action so vitally necessary to trade and commerce. Some of this legislation is not only opposed to the Beform Party's traditional policy, but has actually established principles which are the basis of the main planks of the Socialist Party's policy. We admit that during the war a great deal of Government control and regulation of trade and other activities was not only justifiable but ; necessary so as to concenerate all :-\ our resources for one purpose of deij feating the enemy; but we say emj phatically that all the world over '■'■ leading business men and political 4 parties have recognised that these | artificial controls must be removed so .f as to let trade and commerce devolop :on natural lines. "This was well expressed by the late President Harding, who when dealing with the post-war difficulties and depression said in 1921: 'Government's highest function is to serve business and to give it the fullest opportunity for: righteous activity. Business is a wholly private function. It is founded on the geniua and enterprise and efficiency of those who conduct "it. About the greatest service a Government could render at the present time is to take its hands off legitimate and honest enterprise and tell it to go ahead and _do the most and best that is possible.' About the same time an 'appeal' was issued signed by all the great business men in England in banking, commerce, and industry. It was entitled 'The Voice of Industry,' and the first two conditions were The freeing of our trade and industry from the trammels imposed by the war is essential. The interference, with our commerce, whether by Parliament or by the Administration, should be stayed at once. ; " ARTIFICIAL CONTROLS EXTENDED." "Since these notable declarations were made the Keform Party has if anything, extended artificial controls and State interference with pUvate enterprise. Not .uly have we had to face undue control and legislative interference with what President Harding called the 'righteous activity' of trade and commerce, but we have seen the establishment of departments and boards which have made serious encroachments on legitimate private trading. In this direction municipal and public bodies, power boards, and certain State Departments, such as the Forestry Department, have extended their trading ;;nd done so on lines on which few private traders could compete. "GRAVE UNEASINESS." "This general trend of policy has caused grave uneasiness in commercial and producing circles, and the question ha- been asked, "Where is it going to stop?" At the General Election, you, Sir, issued a manifesto, and if we may say so, it was one which appealed to the practical man, as it was not only free from rash promises of impossible undertakings, but it included a slogan which we welcomed," namely, 'More .businses in' Government, and less Government in business.' Those who valued self-reliance and personal initiative felt that they would now have ft chance to develop along natural lines which we believe to bo the only safe course, unhampered by State controls. "What you said was taken to mean that those engaged -n the development of commercial and producing enterprise had now nothing to fear from the Government, so long as they ran along lines which wero fair to the community as a whole. DIVERTING FLOW OF CAPITAL. "One or two matters have arisen recently which will be touched on later, and which are causing no little anxiety in business and producing circles, because it seems as if the State interference with business has not been modified ta any material extent. In some directions it looks as if | legitimate private enterprise is losing its control and being subjected to such restrictions that it cannot possibly carry on. We desire to seriously emphasis j that such a feeling of anxiety is perfectly reasonable, and that a very small feeling *■ of uncertainty is sufficient to divert the flow of capital, which is notoriously sensitive, and recent happenings are bound to affect the investment of British capita] in some directions in this country. "In your election manifesto you asked electors to help the Government to develop the Dominion on sound and steady lines of progress, 'so that we could build up a strong, virile, and selfreliant community.' We, Sir, are entirely with you in this. You were returned on this polic , and we feel confident that you are genuinely : favour of self-relian.e, bu; we submit that unless we have freedom from State in-f-rforence, the hope of a self-reliant community is only a pious one. It

can never materialise unless the past trend of Eeform legislation is drastically altered." / , ' Mr. J. B. Simpson reminded tho Ministers of the resolutions passed at the Chambers of Commerce Conference in Dunedin with reference to the dangers of control and the1 promulgation of legislation by Order-in-Council. On behalf of the electrical traders, Mr. J. M. Fleming said that the question of competition on unfair lines cropped up with some State Departments, but more especially with local bodies and local boards, such as the power boards. They asked that tie Government give serious consideration to tho proposal to make all State and public body trading subject to the same conditions of taxation and the same principles of sound profit and loss accounting, etc., as private traders. Private enterprise had nothing to fear from State or public body competition so long as the latter had to carry the same burdens and observe the same business methods. Amendments to control laws Summing up the remarks which had been made by other speakers, Mr. Macintosh said that the produce trade of the Dominion was the backbone of its prosperity. It would affect everyone in the country if that trade received a setback. As Mr. Massey had said, "It would be a positive disaster." Mr. Macintosh concluded:— We therefore seriously ask you in the national interests to make an announcement that you intend to amend, the produce control laws by making an Order-in-Council necessary beforo the compulsory powers are brought into operation. This is not only a matter for producers or produce merchants—it is a national matter, and as Buch should not be left in the discretion of the boards, and it is only on national grounds, and the broad matter of principle that we have dealt with :i to-day.