IS IT FAIR?

Evening Post, Volume CXII, Issue 39, 14 August 1926, Page 9

IS IT FAIR?

PUBLIC BODY TBADING.

Trading by public bodies or by the State is commented upon in the annual report of the Wellington Employers' Association, which says:— "There have been indications of the increasing tendency on the part of the Government of the day and of local bodies to interfere in the conduct of private enterprise, but trading by the State or public bodies will never be looked on with favour by those who are called on to bear heavy taxation which State or local bocfies competing against them are free.from. By using the credit, based upon its legal right to levy rates upon the earnings of private traderß, a public body is able to raise loans for the purchase of the necessary trading material. In selling this material it exercises unfair competition against legitimate traders conducting similar businesses, as it is not obliged to pay the samo measure of taxation, thus obviating the necessity to obtain a fair and reasonable profit. Further, all losses sustained through the trading operations of a public body must be made good by the ratepayer.

','lf, in the opinion of the people, State or Public body trading is necessary, it should be placed on the same footing with regard to taxation as private companies or individuals, thus reducing the burden of taxations on private enterprise and possibly promoting economies in the conduct of State or public body enterprises.

"The State activities should be restricted to those services which are rendered to the whole community, and which may be termed State monopolies, such as Post and Telegraph, Eailways, Customs, etc. It is not expected that those Departments which serve ' the whole community should contribute towards taxation, but it is expected that such Departments should assist by economical management to reduce the amount of taxation necessary for tho purpose of carrying on their general work. Throughout the world to-day the extremist's view-point is to destroy the present existing institutions and substitute a socialistic state of control. It should be remembered that freedom in the conduct of business stimulates inventiveness, efficiency, and competition." :