COSTS TOO MUCH

Evening Post, Volume CXX, Issue 105, 30 October 1935, Page 5

COSTS TOO MUCH

LOCAL GOVERNMENT

TREND OF LEGISLATION

DANGERS AHEAD

"The high cost of State and local body government is a subject that continues to give cause for strong adverse criticism, particularly from those who are not employed in such services," commented Mr. A. H. Allen, of Dunedin, in his presidential address to the annual conference of the Associated Chambers of Commerce which opened in Napier today. "The tremendous increase in the borrowing and spending of State and local governments during the past twenty years, the great increase in the cost of government, together with the substantial increases in State taxation and local rates, have been mainly responsible for the people of New Zealand being oppressively overtaxed. The sources of taxation—the working capital of many private enterprises—are now drying up," he went on to say. "Taxation which punishes constructive and efficient initiative and enterprise on the part of the individual retards commercial and industrial activities, and is injurious to the prosperity of any country and the welfare of its people. Not only business men of all classes, but farmers, wage earners, and every section of the community also are adversely affected. Further-, I more, in considering the causes and remedies for unemployment and wage reductions, it must not be overlooked that this crushing burden of taxation is definitely a contributing cause of unemployment and wage reduction. "Any system which opens the door to the disarrangement of profit, or the incentive motive of thrift and the success of private industry, and which seeks to substitute State ownership, spells the doom of a country's real progress. "The more Government is centralised or invades the field of private enterprise, or the more the tentacles of the Governmental octopus of control are allowed to spread, the greater will be the advances made along the road which leads to the destruction of the liberty of the individual, of the ability of private industry to, develop, and of those principles that make for the real progress, comfort, peace, and welfare of a great nation. "Those who have regard for the welfare of society should exercise' the greatest vigilance to prevent further destruction of-those individual rights and principles. Reasonable restraints or regulations, I admit, are necessary to prevent abuses, but they should be adopted only in co-operation with private enterprise and private capital, and not in such a way as will tend to destroy confidence and ruin the successful prospects of private business or industrial enterprise. LAW-MAKING BY DELEGATION. "The passing of 'skeleton legislation' under various pretexts, giving large powers and authority to Government departments to make regulations which operate as laws, is being carried to such a' dangerous extent as will, if not vigorously. resisted by the people, ultimately* destroy the functions of representative Government. . "Powers of control and supervising functions are being surrendered by Parliament instead of being retained by those who are elected by, and recognised a? being responsible to, the people; Ibis a practice'which. weakens Parliamentary control and diminishes the responsibility of Cabinet Ministers. The delegation by Parliament of such powers of law-making as are now. being conferred on State departments is a gross violation of the principles and practice of representative government. In effect, it means government of the people, not by a Government responsible to Parliament or by a Parliament answerable to the people, but by persons over whom they exercise no control. IMPRACTICAL DOCTRINAIRES. "Judging by the nature and ultimate effects of some legislative measures and the principles they represent, to solve economic and social problems, it would appear that some Governments shape their policies in accordance with the views or ideas supplied to them by professors of economics and of other more or less scientific doctrinaires. In the opinion of many public men competent to express a reliable opinion on the subject, some of these advisers can be classed as theorists or. bookish professors: that is to say, they have not that full knowledge, plus the necessary practical experience, to qualify them to form sound judgments and to wisely guide the practical business or services of a nation. "In deciding on measures or principles to adopt action to circun> stances, a Government is more likely to proceed on safe, sound, and sure lines when it consults, not only economic scientists, but also practical, progressive business men—men who have had practical experience in conducting business or trade enterprises and have 'learnt by doing.' The only way to acquire experience at any game or at any business is by 'getting into it.' The failures of many Governments or State ventures have been due to policies dictated by theorists and unpractical doctrinaires. To slavishly follow the advice or become the mouthpiece or echoes of the views of such men is a dangerous course for any public man' who is charged • with national responsibility and a national duty. ' WHERE ARE WE HEADING TO? "While -recognising that there are fundamentals in nature and in governmental and industrial affairs, I believe that there are times when, conditions, particularly periods of depression, that compel the adoption of new policies and the application in our political and economic life of new methods, if I not new principles, in order that development and growth may be assured. "I have thought it necessary to make these observations before making some reference to certain tendencies towards a political, social, and economic revolu- j lion that is evidencing itself in some j countries. We must have regard to j the changes made in forms of government, and the drastic, radical nature of the policies or principles that have been brought into operation since the j conclusion of the Great War. "In New Zealand legislation has been enacted with a view to relieving or remedying the depressed conditions that have obtained in this country. Some features of that legislation are without precedent, and represent principles of such a character that they violate certain principles which hitherto were regarded as wise and in accordance with sound public policy. "To speak frankly, I am inclined to the belief that some of the legislation, with its enabling powers, may prove, as time goes on, to have created dangerous precedents which may cause disaster if acted upon. . I question whether certain of our emergency legislation will pass away after the emergency ceases to exist. Furthermore, it may not be an exaggerated j statement to allege that as a result of Uhe emergency legislation which may : give temporary relief new problems j will be created giving rise to serious '. difficulties at present not apparent. ; "Touching now on the nature of programmes or policies designed 1o I accomplish recovery, there appear .lo

be two policies developing in some countries, namely, one which seeks to adhere to the capitalistic system but regiments it still further to direct and control the entire mechanism of the country's business from a centre: the other would make the Government not only direct the economic machine, but also own it. "Whether industries or businesses ! would'be nationalised gradually or all at one time is difficult to say. What does this mean but the destruction of the capitalistic order and an allembracing and tyrannical Communistic State erected on its ruins? I do not contend the capitalistic system has not its weaknesses and defects; what system has "not?. With all its faults, under it have been witnessed remarkable changes ' making for striking material, moral, and social progress. "I will not believe that the great mass of intelligent and thinking people in any enlightened and democratic country will support any policy of government under which individual freedom of choice and action would be taken away and the individual placed ' in a straitjacket. A nation whose people are without individual liberty, individual initiative, and individual incentive would soon come to grief. Of this I feel certain, that the great majority of our people, are strongly opposed to the Fascism ~of Italy or the Communism of Russia."