"HARDLY IN THE SADDLE YET"

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

"HARDLY IN THE SADDLE YET"

PEIME MINISTEE IN EEPLY.

*'We want to.know what you think about the Government, and we have had a very candid expression of opinion as to what you think of the Eeform Party," remarked the Prime Minister, in opening his reply to the deputation. "May I say that I think you must recognise that we are hardly in the saddle yet. Although we descend from the Reform Party, there are in the personnel new -'faces. The principles you have expressed to-day have been expressed previously"through the Press, and by those interested in trade and commerce. They are not new to us. I would, however, like to point out to you that you have not brought the flour millers along with you this morning. I am rather sorry. The biggest problem we have had to deal with as a Government was the question whether control should continue in the wheat industry. We decided that it should not. Well, now, that seems to me to have given effect to what you have been speaking about this morning. The next thing I notice is that you have a representative of the Sawmillers' Association with you to-day. You are all asking that there should be no regulations in regard to trade that should interfere with it. The sawmillers are anxious that we should have more duty on imported tir-ber. That means regulation. The Government has to use its judgment as to what is in the best interests of the community." The meat and butter boards, he thought, had a very wide interest to everyone, and he wanted to tell them that when his Government took office this legislation was in operatic The Butter Board was set up by legislation, and certain powers given to the producers to handle their own industry as they thought fit. After all it was their own industry, and they had asked for certain legislation to handle that industry as they thought fit. "And that is where we find ourselves to-day," said the Prime Minister. "The same applies to the Meat Board. TRANSFER OF FREEZING LICE-TEES. "There may be various opinions as to whether the Meat Board have made proper representations in regard to their industry, particularly as it affects the free transfer of'existing freezing works licenses. No doubt, we will never be of the same opinion in that connection, but we can quite easily remember what has happened in other countries in connection with the freezing industry, and we can always say in New Zealand that if certain interests were considered to press inimicaliy against the best interests of the producers, that the producers themselves made v. reeonic wendation and that the Government considered it and agreed to it. That applies to the oramfer of freezing works licenses. To allow our country to be monopolised by any outside concern would not be in the best interests of the country. You all agree to that and know that." The principle of paramount importance must be the producers' interests. The prosperity of New Zealand, which was an exporting country, must depend upon the pro-

ducer increasing his production and getting good markets. In regard to the freezing works, I think the Government attitude is known. By that we stand. There may be (some who will say that those who have got shares ought to bo able to realise a certain amount for their shares, and that these should be considered. So they'should, and so they will be. There was no need for the shareholders to be in a panic at all. The Government had to consider interests in which the savings of a large number of people were invested. The national interests were the Government's paramount thought. MUST BE CAEEFUL ABOUT CONTROL. In regard to the Dairy Board and control, the representations of the deputation would have very immediato and careful consideration. B> could not say in strong enough language how carefully that matter ought to be handled. Apart altogether from any interests that might be affected by that industry being completely taken over, they had to remember that whatever was done must not be a failure. If it was, then it would be a set-back to the whole of the industry, and the rest of tho population would be very gravely affected. He had asked, and he asked again, that the producers of New Zealand should be perfectly certain that they were at least fairly unanimous in connection-with the absolute control proposal. The concern at the moment was to know whether the arrangements that were being made were such that would bring about the desired result. In that connection the Minister of Agriculture and he himself were now making complete and exhaustive inquiries. It would never do to have a thing of that kind started without proper business arrangements to handle the whole of the sale of that produce. Personally, he was not in favour at the principle of control except where the national interests were affected, bul there must bo regulation. The man who said that they should not have regulation was talking without a knowledge of the principles of government. COMPETITION MUST BE FAIR. In regard to the question of competition, Mr. Cosites remarked that no one liked the word "control," but the producers had banded together for the .purpose of seeing whether they could improve and regulate their markets. He understood that that was as far as they had endeavoured to go. The Government Life Insurance Department, State Fire Office, State Fire and Accident Office, and the Public Trust Office might all fairly be considered business operations on the part of the State. •" Are you gentlemen suggesting that we should repeal that legislation in every case, because, if you are, I ■ must tell you quite clearly that we have no intention of doing it—none whatever. These institutions have been brought in to serve special purposes, and they have done good service. They have regulated the price. He agreed at once that the system of accountancy should be similar to that of ordinary business practice. That was quite right, and in that direction they were going. Further proposals were being drafted which would have the effect of bringing those Departments on a more or less equal footing with private enterprise in the matter of their costs. , . , He agreed that where local bodies had trading accounts and went in for trading, that their trading accounts should be handled in the same way as those of an ordinary business undertaking. It had never been intended that the whole of the electrical trading should be handled by power boards. As a matter of fact, quite a number of power boards had found it unnecessary to undertake trading at all, although some had done so. The power board legislation very closely followed the Municipal Corporations Act, which gave, power to local bodies to trade. He thought that his colleagues present agreed with him that competition with private enterprise should be perfectly fair. It might, take some little time to bring about, but it could be done. DEPARTMENTAL ECONOMIES. No one objected to more business in t Government, and they had already set up a general committee to overhaul costs in various Departments and to see if alterations could not bo made in methods of departmental organisation, with a view of eliminating to some extent overhead charges that the country had to carry. -In addition to that, they had many small sub-committees, composed of men who were probably younger in years than tho controlling officers, at work in various Departments finding out possible methods of reducing overhead costs. A veiy complete system of overhaul was " being made. That might be called cidinary '■■■„ srtmental organisation, but it had a very important effect in showing to the Government where savings would be made. They did not want huge central Government; they wanted to reduce that as far as possible, knowing perpectly well that it was the people of New Zealand who had to pay for it. " LESS GOVERNMENT IN BUSINESS." ' "Now, in regard to less Government in business," said Mr. Coates. "There again I think we can find common ground for a concensus of opinion. Tbe moment one makes that statement one is immediately held responsible for everything that has happened in the past. (Laughter.) In that connection; I can only say we are working gradually to the principle. Ido wish to emphasise that the national interest is our first concern." ■ Their special concern was not whether a firm existed or went out, but whether New Zealand's interests and credit were being kept up to highwater mark. That was their concern, and they would work in that direction gradually. He did not for one rnomoot expect to satisfy the deputation as to the methods he adopted in all things, but he iioped they would work suroly and effectively. Mr. Macintosh said that he desiitd to make it plain, and he thought he was expressing the views of other memders of the deputation, that they did n^t intend to imply that the Government should interfere with those undertakings to which the Prime Minister Had specially referred. Those institutions were here to stay, and they all rec--g nised that. The one point that really interested the deputation was the danger of compulsory control. "I think, ' said Mr. Macintosh, "that that is the one point that sticks out in connection with all that has been said to-day." They desired that compulsory control should not bo carried out except fcv Order-in-Council. "WHERE ARE THE DANGERS?" The Minister of Agriculture: "Whe:e is the danger about compulsory controi. I hear a lot about it, but I cannot get anybody to explain it. Where arc tbe dangers?" Mr. Macintosh: "That is a matter of opinion." Mr. Downie Stewart, in reply to a further remark by Mr. Macintosh regarding th . necessity for an Order-in-Council to inaugurate control, remarked that the producers themselves had asked for control. An Order-in-Council would mean that the Government ".self would be imposing control. Mr. Macintosh said that he found that there was very great alarm as to tho control of important industries passing absolutely into tho hands of bodies who did not have the responsi-

bility that rested upon the Government itself. "IS THERE A DANGER?" The Prime Minister: "Parliament in its wisdom agreed to that." The immediate problem was whether there was a danger in the proposal that the producers were proposing to take? Was their organisation in such a position that they could secure to the producers of New Zealand efficient handling of their produce. Did the men. handling it possess the confidence of the producers? A voice: "No." Mr. Coates said that the matters he had referred to were those he had taken up with the Minister of Agriculture and the board in order that they might be told definitely and plainly what arrangements had been made. "We have no right to do it under the legislation," continued Mr. Coates, "but we ,are concerned in the national interests; we want to Joe perfectly certain that we are not running any risk in the sale of that produce, and in its handling and general' manipulation. Whether it was wrong to bring in control is not the jOvaX at the moment. It was brought in, and there is legislative authority for it." A member of the deputation: "That inquiry you are making is a very wise step. It will relieve the minds of a great many people to learn that you are doing that." '