SWING FROM STATE ENTERPRISE

Evening Star, Issue 21503, 30 August 1933, Page 2

SWING FROM STATE ENTERPRISE

NEW SOUTH WALES LOSSES

[Psit United Press Association.]

WELLINGTON, August. 29. Commenting on the relationship between New Zealand and New South Wales State trading Mr A. S. Burgess, president of the New Zealand Associated Chambers of Commerce, who returned to-day from a visit to Australia, said he had been particularly struck with the evidence in New South Wales of the swing away from State enterprise. Industrial undertakings now operated by the New South Wales Government apart from railways, tramways, and motor buses, were mainly the residue of the large number established by various Labour Governments from 1911 onwards. The majority of these enterprises had proved complete financial failures, and had been abandoned. During the prosperous constructional years prior to 1929 tho State brick works, Monier concrete pipe works, and the State metal quarries in New South Wales had been conducted at a considerable profit, due largely to preferential privileges in the supply of Government material for Government works, partial or complete exemption from taxation, and similar advantages over private enterprise. In 1932, however, Monier pipe works was the only one of the three disclosing a profit. Until 1930 State industrial undertakings had not been subject to income tax. but the legislation of that year had directed an assessment on those concerns of taxation in respect of transacted business.

The trading results of State industrial undertakings still operative for the year ended June 30, 1932, were: Brick works, loss £8,629; Monier pipe works, profit, £7,899; metai quarries, loss, £2,082; Government tourist bureau, loses, £24,405; Leeton canning factory, loss, £17,254; Lithgow coal mine, loss, £112,000; dockyard and engineering works, loss, £70,145.