TAX-FREE TRADING

Evening Star, Issue 19892, 14 June 1928, Page 2

TAX-FREE TRADING

HANDICAP TD PRIVATE COMPETITORS BUSINESS MEN: CONCERNED THE; ISLAND, STEAMER CASE. ■ fFBOM OIJR rOKBEBPONCKNI.] ' . WELLINGTON, June W. Tho new Government steamer for the Islands -trade, the Maui Pomare, visited Wellington for several days tins month,' discharging some cargo which had,paid freight, .and- went on to ■Auckland without the'necessity of paying, the usual port, duos and other charges ■ which' any*. vessel privately owned and in the same trade would have been obliged to settle before receiving a clearance. This instance of tho handicap imposed on private business in competition with the Stale was brought under tho notice of Mr D, J. M'Gowan, president of tho Associated Chambers of. Commerce of Ecw Zealand, and his opinions were sought. Mr M'Gowau is a member of , the Wellington Harbour Hoard, and in that capacity was able to show tho financial advantage which State competition . enjoys compared, with private shipping. This steamer, if privately . owned, would have been required to pay nearly £9O to tho Wellington Harbour Board, tho items' being; wharfage, £sl 7s 9d; berthage rate, £0 ss; harbour improvement rate, £l3 17s Od; water, £2 3s 4d; port charges, £9 7s 6d; harbour master’s fees, £0 ss. The Maui Pomare contributed nothing to the board’s funds, though tho issue has been raised, and the board has duly presented to the Government a bill for £S9 6s Id in the hope of payment.

“The Mam Romaic instance is tho last, but by no means the only one, in which the business community has roar son to'cbmplain of Government trading activities competing on unfair lines, declared Mr M’Gowan. “The Chambers of Commerce are receiving complaints almost every day, and not long ago tho, position was realised ns being so 'serious that it caused a. representative deputation of business; men to approach the head of tho Goyernment with a strong protest against the way in which Government interference in business had been developing. “ This tendency is not confined to purely Government departments. It is found in other statutory authorities, such as tho powers, which were so 1 / u»' purely and simply as retailers of electric power supplied ..to them in bulk from tho State hydro-electric undertakings. But by means of legislation for which rihe Government must bo held .responsible (though l.feel sure it was never intended to! be used in that way), these boards aro not only tiading in electricity, but in every incidental required by electric users. I am given to understand that the electrical traders would not mind this unfair business to go on if tho power beards were only obliged to compete on oven terms. This would be, possible by . forcing tho boards to keep separate trading accounts, making the business ('ay its proper share of expenses in tho same' way as the ominary trader’s ‘ overhead,’ and ensuring that these accounts wore kept on strict business lines. Such a business should also.boar its share of local and general taxation in tho same way as the private trader, placed'in such a footing, I am assured that the electrical traders would have no fear of , competition; but under the present handicaps those firms are being slowly driven out of their own business.” NURSERYMEN OUT OF BUSINESS. “In other directions, too,” i.optinued Mr M'Gowan, “State, trading is proceeding on unfair lines. The State Forest Department is selling shelter and other trees to the public' at a price far less than the- nurseryman —who pays taxes and local, fates—can prepare them for the market, and the chambers of commerce can give tho details of nurserymen • who have, through this competition,' been forced right out of their business and obliged to work for a wage, “Timber millers complain ' of the Railway Department spending a very largo sum on timber mills and a house factory not for railway purposes alone, because they are offering timber and ready-cut dwellings to tho public at a price which no private trader could quote and make expenses. The department admits having, made a huge loss last year, and it is f only competing against tpo private timber miller at a loss. "Then the master carriers in Wellington have their complaint against the Railway Department,’ continued the president of the Associated Chambers of Commerce, vyho himself con r ducts a concern. “ For oyer twenty years a Wellington firm delivered the parcels in Wellington for tho .Railway Department.. -It built up an efficient organisation, which cost much money and effort, but, this goes for nothing when the Rost and Telegraph Department tenders against private enterprise and gets the job. “ Here is an instance of how local bodies are capable of discrimination against a private trader. This case is reported from Auckland, where a master- carrier obtained a carting contract and the customer undertook to meet any claims in respect of road damage. The county council claimed £101) against the contractor under this heading, informing him that, failing settlement within 48 hours, the claim would be made through the courts for double s that sum, When the contractor in- j formed them that his client, a county , ratepayer, was holding himself respon- j slide for this liability the county council modified its demands to a few loads of road metal, and the claim was set- I tied. This at least showed considera- i lion for the local ratepayer, but the private gas companies in their competition against publicly-owned electrical undertakings obtain no such advantage as arises from rate-free and tax-free operation. “It is impossible in a newspaper interview to specify ail the serious complaints which- private traders have to make against "unfair advantages enjoyed by public competitors,” concluded Mr M'Gowan, “but to show that our grievances are not hazy and generalised complaints T can-, mention at least twenty interests who are suffering under this disadvantage.. They comprise banks, insurance companies, electrical traders,- gas, companies, sawmillors, transport firms, dairy exporters, nurserymen, timber- growers, freezing companies* kauri gum exporters, kauri gum brokers, - steamship - companies, master printers, fruit exporters, archi-; toots, retail booksellers, milk vendors, and- alb those .retailors whose businesses are lessened by ,th© activity .of the Post Office in its capacity as agent for overseas ..firms who' sell by catalogue, and get their .accounts .collected fetish on delivery ’ by. tho Sfdtel Tho, situation-’ has given.business men a.good deal of concern .'and . warrants the yery active attention of; theVGovermncnt.” ,