TOPICS OF THE DAY

Evening Post, Volume CV, Issue 97, 26 April 1928, Page 6

TOPICS OF THE DAY

In dealing with objections to tho wheat and flour duties, Mr. Downie Stewart, as Minister for Customs, mado a careful but unconvincing reply to tho Auckland Chamber of Commerce. That body, in effect, objected to tho Government practically immunising wheat-growers against the vagaries of tho market, on the grounds that tho price of bread was kept higher than the market price of wheat warranted, and that tho prices of feed stuffs for the dairying and poultry industries wore also kept high by tho., samo process; further, quoting Lord Beaconsfiekl, "to tax tho community for tho benofit of a class is not protection; it is plunder." Mr. Stewart cannot deny that tho price of flour in Now Zealand, and consequently the price of bread, is higher and kept higher by tho duties than the export price of wheat justifies; nor that the effect of high-priced wheat for fowls and high-priced mill offals for pigs is reflected in high prices for poultry and pig products. Tho community is certainly paying a toll on every loaf consumed, in the aggregate a very stiff prico to the, wheat and milling industries for tho bountiful favours they have received from the Government. It is not at all clear, too, that tho quality of tho products is all that it ought to be. However, that is another aspect of the question. Mr. Stewart's answer to the Auckland chamber resolves itself into tho enunciation of a policy which should make tho community think. That policy is tho Australian policy of placing tho farmer on the samo footing in regard to protection as tho manufacturer. The public will have ' to pay, as it is paying in Australia, far moro for the products of its own country than they roaliso in markots 12,000 miles overseas, all freight and charges paid. Wo are doubtful if tho Auckland chamber will bo impressed by tho Minister's argument, for ho knows, as tho chamber knows, that Now Zealand manufacturers have nothing liko tho protection enjoyed by Australian manufacturers. * «■ # A hint of tho possibility of a higher petrol tax was given by the Hon. A. D. M'Lcod, whon speaking in the Wairarapa on Tuesday. I am not going to say that the tax is going to be sufficient (said the Minister), but I am sure of this: if the roads cannot bo maintained, then Ilioro will have to bo a higher lax than fourpence—and tho motorist will bo Clio first to ask for it, in order to have better roads. This may be a kite put up to see which way tho wind will blow. If thero are sign, of a galo tho kito may bo pulled down at once. Without anticipating such a galo, however, wo may bo sure of this: that the motorists will not be tho first to ask for a tax iv excess of fourpence. Their request is much moro likely to be for some proof that tho present fourpence is well spent for tho benefit of car-users. To obtain that proof they will seek bettor roprosentatio- than they now have of petrol taxpayers. At present tho motorists have minority representation on tho Main Highways Board, and thoro i$ no representation at all for tho boroughs which provide a substantial proportion of the motor road mileage. Taking these circumstances into consideration, the fourpence, tax lias been accepted and paid -/ith remarkable docility. This, however, Bhould not encourage tho Government to go a step further unless it is prepared with unquestionable proof that tho funds will bo equitably distributed for the maintenance- and improvement of roads according to the measure of motor use. • * * If Mr. W. M. Hughes regarded the responsibilities of shipowniug as forced upon the Commonwealth Govcmniout, lie had good reasons for doing so. At tho timo ho mado his famous purchase nf a fleet of fifteen ships within an hour, Australia, as ho saw it, was-in i danger of being deprived of tho necessary tonnage to carry its produce to market and realise upon it. Tho alter- j

ation. Ho acquired tonnage, and so the Commonwealth Lino Was founded. It was in a sense a War measure, and for a time a profitable enterprise. Profits, however, vanished, and substantial deficits took their place year after year. Wisely, tho Government of Mr. Bruce resolved to cut its losses, and has now disposed of its seven remaining ships. It is claimed for tho Commonwealth Line that even if latterly it did lose money considered aa a shipping company its effect upon other shipping services was such as to act as a brake upon high freight and. passenger rates. This is difficult to prove, although some who stoutly advocated retention of the Government Lino put this saving at millions per annum. Mr. Bruce has not denied that tho Line had done "a certain amount to effect reductions in freights and prevented rises in them." Of course, tho. Conference Lines in tho Australian trado resented this Government competition. But the Commonwealth Government, having now relinquished its shipowning interests, leaves the field to tho Conference and other companies. It is hoped, therefore, that in future private enterprise in shipping in the Australian trado will be so distinguished by efficient service and moderato charges as to fully justify the Commonwealth Government in abandoning its venture, and give tho people of Australia no cause to regret that step. ** # # Labour stands officially for the socialisation of tho moans of production, distribution, and exchange. One would imagine, therefore, that when a big enterprise comes under public ownership tho union would do their utmost to promote its success. With ono excuse of "exploitation by private capital" they would tako especial care to avoid industrial disputes, and to prove that public ownership is indeed tho euro for labour troubles. Unfortunately this is not tho experience in practice. Public ownership too often appears to bo a signal to militant unionists to press their demands to the point of dictatorship. It .was so with the Queensland railways till a Labour Government was compelled to take up tho challenge. It has been so with tho Commonwealth Skipping Lino right from its establishment. Tho Australian Federal Government was a good employer. Tho pay and conditions on tho Commonwealth .ships were better than upon any other overseas line; yet the service was subject to constant interruptions. In return for the good pay and conditions thero waa not tho higher standard of scrvico and industrial peaco that might have enabled tho lino to continue in successful competition with other shipping groups. Possibly the maritime unions thought it impossible that any Government would.bo as good as its word and sell out a Stato enterprise. Now that Mr. Bruce has carried out his expressed intention and tho salo contract is signed tho maritimo group of unions appears to bo acting with blind fury. The unions offered no encouragement to the Government to retain, the service. Now they threaten to declare all Lord Kylsant's ships black. The Commonwealth's experience of shipowning, from an industrial peaco point of view, is not encouraging to advocates of Stato enterprise. Tho workers, who had much to gain, did much to make State shipowning a burden. Tho latest threat to boycott tho purchaser will not help to correct thoir mistakes.