STATE ENTERPRISE

Evening Star, Issue 19952, 23 August 1928, Page 12

STATE ENTERPRISE

SHOULD TAXPAYER BE HELPED? SOME WONDERFUL POSSIBILITIES [I'KOM Quit I‘AUl.l AMKXT All V ifnrOKTElt.] WELLINGTON, August Wliou tho Prill 10 Minister spoko during tho liuaucial debate he drew an attractive picture ol the iuturo revenue from the hydro-electric undertakings, which could help tho taxpayers to the extent of many millions annually if tho present charges were maintained. tiis theme -was amplified to-day by -tho Minister oi Finance, who pictured n tax free community somo day if a particular policy is adopted in regard to State enterprise, thou<rh ho showed some doubt whether tho consumer would not demand prompt shares in tho dividends by way ot reduced char lies Jlr Stewart pointed out Unit when his leader referred to tho large prospective profits, a member asked if charges would be reduced, and that was tho whole point. Tho original Socialists advocated State ownership, and pointed to the enormous profits private individuals were making, claiming with some show ol reason that if the State took over these enterprises it would secure the profits, thus enabling tlio Government to reduce and ultimately abolish, taxation, the community being able to pay its way from profits; and that social services would be greatly amplified, hut if the policy was adopted that the actual consumer was entitled to all possible advantage, then this attractive principle must be abandoned II the original socialistic principle was observed with all our State enterprises, Mr Stewart pointed out that immense profits would be reaped, and there was no end of tho financial possibilities, assuming that the profits were up to predictions. HOW TO PAY THE NATIONAL DEBT. If one took the moderate 'dew that tho consumers were entitled to half the profits, even then in one generation there would be Millldcnt revenue to pay off the non-rcproductive debt of tho dominion, reduce taxation, and greatly increase our .social services. This would mean, of course, that for some years lie would adopt a somewhat Spartan regime in our financial jwlicy, with the public foregoing a substantial reduction in charges. However, it would put New Zealand in a splendid position. Mr Sullivan: Would that not place an undue burden on one section ? The Minister replied by referring bis questioner to the experience of Dunedin, which owned its hydro-electric service and sold power cheaper than elsewhere. Personally, lie did not see why all tho benefit should go to the consumer, because tho taxpayer, who found tho capital, should get some of it. Me had boon told by the head of the Postal Department that if he was allowed to charge Now Zealanders the telephone rates payable to private enterprise in America for a few years, the department could do groat extension work, reduce its capital liability, and put it in a position in which the country would have an enormous asset. However, Mr Stewart concluded, he recognised that tho user wanted the whole of tho benefit, and. though there was room fur an intermediate policy, which.would produce gratifying results in tho future, it seemed to ho out of the lungo of practical polities.