STATE TRADING

Evening Post, Volume CVII, Issue 74, 1 April 1929, Page 10

STATE TRADING

"GOVERNMENT'S POLICY

OPPOSED BY LABOUR

BEST SERVICE TO PEOPLE

In whatever other respects the Labour Party may support the policy of the new Government, the annual report of the Labour Party, adopted at tho aunual conference to-day, makes it clear that the party differs strongly with tho Government's attitude on the subject of Stato trading.

The policy of the United Party regarding Stato enterprise, says the rbport, was clearly expressed in its manifesto, which read: —

"State Trading.—Non-interference in private enterprise, and the restriction or curtailment of Government by regulation or Order-in-Council. The eneroaehment by the State ia the field of legitimate private enterprise is detrimentally aifecting all commercial progress, and causes a feeling of insecurity ia the minds of those engaged in business in the Dominion. The United Party states that trading for profit in'these enterprises is not a legitimate function of the State. Trading by tho Stata .should be undertaken only to prevent exploitation of the public by private monopoly, or to supply a necessary public service not supplied, and which private enterprise is unable to."

"No complaint," states the Labour Party report, "can be made against the Government, Sir Joseph Ward, or tha United Party, as far as the clarity of this statement of policy is concerned. They are entirely opposed to the State or local bodies undertaking any public, service in competition with private enterprise. In furtherance of this policy, tho Government, shortly after taking office, upset the existing policy of tho Foresty Department in its sales of trees from its nurseries. Sir Joseph Ward has stated that the competition of local bodies with the electrical traders must cease, and the. 192S Committee has expressed its appreciation at the reception accorded to its programme by the Prime Minister at a private interview.

WHAT 13 AT STAKE?

"To realise the full implications o. this policy," the report states, "it is necessary to go.back to the conditions existing prior to' the opening of the State coal mine, the entrance, of the coal from which resulted in an immediate deduction in prices at all points which could be readied with State supplies; the establishment of the State Fire Insurance Department, which reduced premiums by 33 1-3 per cent., and in spite of its relations with the Underwriters' Association still acts as a brake on the premiums charged by the private companies; tho State Advances Department, which cut in half tho abnormal' rates previously charged by the private financiers for mortgages; and the State Forestry Service, which during the past decade has rendered incalculable service to the community in its advocacy of tree, planting, and the backing up of this policy .by supplying the youug plants at reasonable prices.

HYDEO-ST-BcSE-VCrTY AND MILK.

"Tho man in the street can realise the price he would have had to pay for current if the hydro-electric resources of- the Dominion had been under the control of private corporations. It is easy to picture the position if the private trader is encouraged to conic between the consumer and the source of supply, and consumers can imagine tho prices that would be charged not only for electricity, but for gas,' if tho corporations controlling these two essentials were allowed to combine together, oven though the combination were not niade public.

"Wellington milk consumers will remember the conditions existing withia the city area when the milk supply was entirely in the hands of private vendors, and will realise the menace to the milk supply, and the city, if tho policy.of the Government is carried to its logical conclusion. If comparisons are any evidence, we wpuld place tho achievements of the Post Office Savings Bank against those of the private banking corporations.

RHCOB.D OF STATS ENTERPKISE,

"The State institution, to which tho policy of the United Party is opposed, lias paid interest on all deposits; loaned its deposits to the Government for national purposes at 1 per cent, below ruling rates; provided nearly £.50,000,----000 for development purposes without any cost for flotation; held in trust and at call the deposits of 735,000 investors without the loss of one penny, whilst paying interest at the rate of 3} per cent, oh current accounts. Compare this achievement with the high over-, 'draft rates and abnormal profits made by the private banks, whose surplus is distributed to private shareholders, ths majority of whom are resident overseas. Compare the electric power boards, whoso objective is to discover the most economical means of distributing, current for the benefit of the consumer; with the private gas companies, whose objective is tho sale of gas at prices which will give the maximum dividends to the private shareholder. Compare the State Advances Office interest rates with those charged by the private financiers. "THE PEOPLE'S OWN." "A few examples only have been quoted. The test is which system will best serve the community. If private enterprise functioning for dividend and profit production can give as good working conditions and supply the essentials necessary for community life at a lower net cost to tho community than these same services can.be supplied through the peoples 1 own organisation, then, private enterprise can get on with its work. But all the evidence of the past proves that private enterprise ultimately has one objective—exploitation —and the Labour movement will use all its resources to conserve the benefits of the far-seeing legislation of earlier statesmen, whilst at the same time doing all in its power to extend every public service that will give greater returns to the community."