CHAMBERS OF COMMERCE

Evening Star, Issue 21077, 14 April 1932, Page 3

CHAMBERS OF COMMERCE

• VALUE OF CENTRAL ORGANISATION AUTHENTIC VOICE OF BUSINESS GOVERNMENT ECONOMIES AND THEIR EFFECT A general meeting of members of the Chamber of Commerce was held in the University Club rooms last night, when Mr W. Mach in (president of the Associated Chambers of Commerce) and Mr H. S. E. Turner (a member of the Christchurch Chamber) delivered addresses. Mr T. C. Ross (president of the Dunedin Chamber) presided, and there was a large attendance. Among the apologies for absence was one from Mr dames Begg, who, writing from Wellington, said: “ The chambers of commerce must continue to hammer away at the necessity for great reductions in public expenditure of all kinds. It is up hero that one appreciates how difficult it is for the Government to cut down expenditure and the tremendous pressure that is brought to bear to prevent each individual economy being given effect to. It is only by consistent and continuous pressure that results can be obtained. 1 trust that the chamber is considering what are the greatest possible concessions that this country can offer at Ottawa in exchange for the free entry of our products into Great Britain. Some sacrifices must be made, and the Chamber of Commerce should take the lead in advising the Government what direction these concessions should take. So far, I regret to say, much more has appeared in the Press' here as to what we should demand at Ottawa than what we should concede. This attitude seems to me a very dangerous one, and if generally adopted may go far to wreck the conference and delay the development of Empire trade for many years.” The Chairman, in welcoming the visitors, said that chambers of commerce throughout the country were becoming a greater force than formerly. Those who perused the columns of the ‘ Mercantile Gazette ’ would have read in a recent number a very convincing article on the necessity of firms giving strong support to their local chambers of commerce, not only by subscription, but also by attendance at meetings and participation in discussions, so that their executives could speak with authority after full consideration. Besides the ‘ Mercantile Gazette ’ other interests appreciated and perhaps exaggerated the powers of the chambers of commerce. An open-air orator recently stated that the Government was ruled by the banks, chambers of commerce, and the farmers. (Laughter.) It was very important that the views of the various chambers should be harmonised and from time to time adequately presented to the Government, particularly just now, when hasty and possibly illconsidered legislation was being rushed through. To guard against this a watchful and powerful central executive was necessary. CENTRAL ORGANISATION NECESSARY. Mr Turner said he did not think it was altogether necessary that he and Mr Machin should have come to Dunedin to explain what the Associated Chambers of Commerce was, what it could do, and how worthy it was of members’ support, because it was one of the most powerful lines of attack and defence that trade, industry, and commerce had in the struggle that was going on at present. He felt that Dunedin more than any other city in New Zealand knew that because Dunedin was the birthplace of more national enterprises than any other city in New Zealand. It was very remarkable when one thought of the national institutions that were born in Dunedin, especially the shipping industry, the woollen industry, stock and station agencies, and last, but not least, the freezing industry. The New Zealand Refrigerating Company, the first company of its kind in the world, was commenced in Dunedin, It occurred to him that possibly the reason for their visit to Dunedin was that some few business men in Dunedin, strongly individualistic, could nob see the necessity for surrendering any of their individuality to a central organisation. If there were any such he would like to make a few remarks on the subject of the importance of a national organisation in this light. The Associated Chambers consisted of representatives of practically all the chambers in New Zealand. It was a body that had absorbed the 1923 Committee and the Taxpayers’ Federation, both of which had ideals which were embraced in the principles of Associated Chambers. The basic principle of the 1928 Committee was that Government activities and functions should be limited to those matters that could not be uuderaken by individuals, and that principle was one of the main objects for which Associated Chambers was fighting to-day. Every chamber, he submitted, must realise the importance of the national association. There were problems facing them to-day which could not so effectively be dealt with individually by chambers as by a central organisation. It was their organisation that could, for instance, lay the views of the various chambers beloiv the Government of the day. No Government could properly listen to the views of the commercial community when it had to listen to a voice here and a voice there. It was more effective if the Government could get the voice of the commercial community from one mouthpiece. Governments in the past had b6en misled into a great deal of socialistic legislation, and it was logical to say that the present position of trade was breakdown of an attempt to graft a socialistic organisation on to a capitalistic state. Socialism could never produce those things that the masses needed in order to keep up their standard of living; capitalism was the only thing that could do it, and capitalism could not do it unless it was making profits Associated Chambers had achieved many qf its objects in the past. At the same lime it had met failures. Further, its members had differences of opinion, but, whatever these might be, they were not allowed to take away from tho success of the organisation'. Where was the body better qualified to advise the Government in respect to some of the matters to be discussed at the Ottawa Conference? It had advised tbo Government regarding an Economy Commission. In October last it passed a strong resolution calling on tho Government to set up an independent committee to go into the question of Government expenditure and income in order to adviso the Government how to cut its coat according to its cloth. The chambers of commerce pressed that view on the Government, and held tbo view that their efforts liad a good deal to do with the setting up of the Economy Commission. “ Our influence is recognised and accepted by the powers that be,” said Mr Turner. “ Personally, I have bad the honour of attending many interviews with tho Prime Minister and other 'Ministers, and if is obvious te a man who has attended those interviews that the voice of Associated Chambers is recognised by the Government as the authentic voice of commerce.”-

ONLY THE EIKST STEP. Mr Machin said he wished to congratulate Dunedin ou the fact that its own Finance Minister (Hon. AV. Downio Stewart) had attacked the problem ot a diminishing income with an increasing expenditure, and had made an effective contribution which would be the first step towards the rehabilitation ot New Zealand. He would not say it was a complete step, because there was still a long way to go, but it was a positive and definite step in the interests of the whole country, and the chambers ot commerce ought to congratulate him on what ho had done. There was a necessity at present for adjustments in financial and other matters. The country had an income of £40,000,000 less than it had some years ago. Costs were still high. Many of the adjustments they might have' had during the last three or four years had been resisted, and they were no nearer securing them today than they were at any time during that period. Those adjustments, however, were necessary to business again becoming virile and prosperous, and the commencement of that prosperity would bo definitely retarded so long as the adjustments necessary in the economic make-up of the country were opposed by those who were asked to make them. Industry must not bo crippled, nor enterprise retarded. Most of the members of the chamber had no doubt watched with interest the amount of money on fixed deposit in the banks in the last few years. An amount or £34,000,000 had been placed on fixed deposit in the banks at a lower rate than was normally expected in business. Why P Because the owners of that money had decided that business was so unprofitable that they had not cared to uso their own judgment in placing the money in enterprise. The Government had placed restrictions on business, it had interfered with and hampered individual effort, and .as a result many people became somewhat scared and banked their resources. As an outcome two problems now confronted them: How were they to make adjustments in their expenditure commensurate with reduced income, and how were they to make those adjustments so that business would become alive again notwithstanding the lower income they were receiving? He held the view that unless the business community stood solid, not only on the defensive, but on the offensive, to see that they regained conditions that would make business workable in the future, other interests would receive consideration first, and as a consequence the business community would bo left in a difficult position in the time to come. “In our own businesses in the last three or four years,” said Mr Machin, “wo have been making real economies that have been the result of serious thought and hard work; they have genuinely meant that less money had to be found by our businesses and spent by our businesses, and that is the kind of economy that the chambers of commerce must press on the Government with increasing urgency, for no other economy will get us out of the wood.” He urged that chambers of commerce should stand beside the Government in its earnest desire to make economies commensurate with its reduced income, and they must see to it at the same time that those economies were made with reasonable equity. There should be no inequalities in the ratios of the sacrifices involved in the adjustments that were being asked of the community—inequalities due probably to the extent of the pressure put on the Government at the present time, as stated by Mr IBegg. GOVERNMENT'S INTERFERENCE. Tho increasing power of the State in dealing with businesses and the increasing interference of the State had been known and had been girded at by tho business community for years. The Government had made a beginning in striking off the shackles of industry by amending the Arbitration Act, but it had a long way to go. Mr Machin thought they should demand that whole Government departments should be done away with. AA 7 herc was the necessity for tho continuance of the Public AA r orks Department? AVJiat had it done? It had crippled the building and construction and engineering industries of the country. It had brought into existence a huge army of public officers whose work had been of an extravagant character, and its cost to the Government had been enormous. At its inception the department was to be a supervisory department to advise the Government in the matter of public works. It was not intended to be a department that would take in hand the planning and erection of huge Government works. If tho Government were to keep to the original idea there would be an immediate revival of the construction firms of the country, and there would bo a call for young architects and engineers, whose services would be retained in the dominion. Mr Machin again stressed the necessity for the existence of chambers of commerce at the present time. The voice of the commercial community had not been raised sufficiently in the past, and tho time had now come for an explicit expression of their views, not only in their own interests, but in tho collective interest of the whole community. At the conclusion of the meeting Mr Turner and Mr Machin were heartily thanked for their addresses.