RETAILERS’ DINNER

Hawke's Bay Tribune, Volume XXVI, Issue 79, 14 March 1936, Page 11

RETAILERS’ DINNER

I MR. CULLEN A GUEST Mr. Lassen Also Present ADDRESS BX MR. FRENCH After a dinner at which Mr E. L. Cullen, M.P., and Air Chris. Lassen were the guests of Hastings retailers on Wednesday night, the president, Mr H. R. French, congratulated the member for Hawke’s Bay, in securing the trust of the majority of the electors, Mr Cullen was a member ol the party which had attained the Treasury benches, and whose leader, with a statesmanlike appeal, had asked for the co-operation ui all sections ot the community. The Hastings Retailers’ Association was a nou-pai usan body winch m the past had ouered co-opeiation lor what was considered the benelit of the Dominion and of our town, said Mr French. It may have been better in instances if the oUered co-operation had been accepted. There had been misinformed criticism oi liastmgs business men. ft was not necessu.-y i,_ spend time on that, for tho record could spean. As the Government could not be said to have business interests over-represented, and as Mr Cullen had become the representative of all classes in the electorate, it would be well brieiiy to set out some of the activities of tho association so that in accepting the general invitation to co-operate it could be based on understanding. “In the growing complexity ol government, tue old concept that only the majority group should exercise power is not wide enough lor modern needs,” said Mr French. "Ao group, no matter how intelligent, can secure the requisite balance or view required. The tact that the legislators of the United States are mainly lawyers is a drawback to the progress of the world. The training of the learned men oi the law is to imagine ali the diliiculties that can arise and to secure the utmost protection from them. The training of a uusiness man is to venture his all in foreseeing needs and providing for them, a service whose magnitude is seldom realised. Nor is the lact ol the cheapness of that service. When our association took a leading part in the discussion which led to the abolition of the C.O.D. post, by winch our Postal Department became the collecting agent for overseas retailers, to the hurt of New Zealand traders, their employees, and the Government, we were supplied with all the information we needed from a number oi highly prosperous businesses in the Dominion. Une had made a net profit of £ IU,(XK) from which the Government had, as usual, received a very substantial dividend in income tax. The amount of tho service charge, which is a better term than profit, tor each £ of business transacted was lOd. In another business it was 3d in the £. Had those businesses reduced their prices by five per cent, on that turnover, instead ol a result pleasing to the Government as weil as to the company, there would have resulted a loss. It is yet to be clearly recognised that most Losses of individual capital are also a national loss. This research enabled our association to take action in other ways. “A Dominion-wide racket was commenced by a few get-rich-quick individuals, who started to organise the purcnasing power of individual shoppers by means of presents, and then to exact ten per cent, or more rebate from traders for the right to supply the unified purchasers. With a normal net turnover profit of five per cent, or less, such an exaction must either mean higher prices or an increasing drift to bankruptcy. Fortunately the then Government quickly saw the danger oi the racket, and effectively supplied the axe There is another form of unjust trading to which we have drawn attention. That is the endeavour ot some officers of the organisations of the Civil Service to obtain ten per cent, rebate on the purchases of their members. We have gone on record that it special treatment can be justibed, it should be to the low-paid intermittent worker. Our membeis have been steadfast in the view that the shillings of such a worker should have equal purchasing power to tin shillings of civil servants or anyone else. (.Applause). THE EARTHQUAKES.

‘‘We can claim to have done our pari in the disaster of February, 11131,” continued Mr French. "The meetings we called in that period of stress were attended by hundreds. Tn the discussion of reconstruction plans the message oi faith in the future destiny of our town and district was stressed. Had our plea that help should be given first to those whose losses were heaviest in iportion to their remaining assets betu adopted, we would have been saved the injustices that have followed from giving so much help to those who suffered least. We urged the widening of Hecetaunga street. Every year will add to the regret that that opportunity was lost. It was on our motion that relief labour was provided to clear the wreckage on business sections. We urged the reopening of business in our main street without delay. Lt will remain an unforgettable memory that while most of our business men were salving the wreck of their stocks and premises, they yet gave practical expression of their sympathy with others. UNEMPLOYMENT. ‘‘The same is the record in regard to the distress caused by unemployment,” Mr l'rench continued. ‘‘Before national responsibility for this social sickness was assumed, we pointed out the impossibility of our seasonal workers being able to meet living expenses and rent in winter periods when work was almost unobtainable. We pledged the relief workers at the time of one of their strikes to press for more effective action for unemployment relief. All that we have attempted has not been published. We have said, and we repeat it, that it is a disgrace that the richest pastoral district in the richest country in the world should have the highest relative unemployment in the Dominion. Gisborne had that dishonour in 1933, Palmerston North in 1934, and Gisborne in 1935. All the centres between have nothing to boast of. When our stations and farms throw out labour, never overpaid, then a vigorous land settlement policy is an urgent need. Because almost nothing was done in our province in this essential despite all the promises made and the legislation secured, we took our part in pressing for the purchase of the Karamu Settlement, whereby a relief worwer might augment his earnings with growing part of his food supply on a lower rental than ruled, in town. We were

told the settlement was well established and there was no need of local cooperation. Instead of the Government aiding the settlers to obtain the requisite work required to pay their rent, they were prohibited from working on any local government job subsidised from the unemployment fund. And though the then Alinister of Lands represented a Hawke’s Bay constituency he crnld not he induced to see that our land at £6O per (acre was better value than the remote land of the Galatea block at £26 10/- per acre.”

Air French proceeded to point out that in a period of extreme difficulty the business men of Hastings had not only given a considerable aggregate of assistance towards distress, but Messrs E. F. Jones and Leu Harvey, in the Good Cheer Depot. Alessrs Griffiths and Redgrave, in the Red Cross, Alessrs Baird, G. Roach and others on various committees, had given unstinted service in conjunction with many ladies and gentleman from other branches of the community. Ho was proud to be associated with such a band of men. DECLINING BIRTH-RATE. “Previously our association has drawn attention to the paramount need ■of protecting the smaller towns of the Dominion, which are so often the surprise and euvv of overseas visitors,” said Air French. ‘‘To-night 1 wish to emphasise another point. Commentators on social trends have in tho past pointed to France as a country facing decline because of its low birth rate, it is time the alarm rang out that our birth rate has fallen below that of France. The latest figures for France are 17.4 per KM). Our latest is 16.47. We need population far more than France does. Without definite information, there are indications that some of Hie best endowed classes in New Zealand are not maintaining their numbers. The one advantage we have is a five years longer expectancy of life than any other country on earth. Because of that, we have a better net gain than that of France. We cannot afford to let people die before their time. One considerable factor to our low death rate is the sound enterprise of our townships and secondary towns in providing at considerable cost good water and modern sewerage. Shortly before his death, Lord Northclifte straffed an editor of his for commending the amenities of American towns. He rightly said that American small towns lack the services needful for health. I know of no country that can surpass the effectiveness 'of the work of our self-governing local communities. It would not matter if the few hundreds of our local bodies increased by one hundred per cent, as long as the people who paid for the service (generally more efficiently and inexpensively controlled than the watertight compartments of the many departments of the general government), had as good reason for satisfaction as they have at present. We cannot afford to hurt our country towns by any proposal which mav lessen their business. The question of a universal shops holiday is more than a domestic adjustment between shopkeepers and their assistants. If the voluntary flow ot trade is disturbed at its maximum, if evidence is forthcoming that such a disturbance has diverted a portion of a country town’s trade to one or more of the four main cities, then the question involved goes beyond the inconvenience of country patrons, it becomes involved with that aspect of national welfare that is of increasing importance, tho avoidance of any suggestion which may lessen the trade ot country centres. “While Air W. E. Barnard, ALP., has a lull right to think and act as he thinks best, and while he has given good service to his town and the province, yet Air Cullen, as representative of the Hawke’s Bay constituency, will, we trust, strongly oppose Air Barnard’s desire to strip a district of its right to determine the shop’s half-holiday question. (Applause).

HOUSE-TO-HOUSE TRADERS. “As Air V. L. Westerman will deal with the burden the sales tax and high exchange imposes upon the ultimate purchaser, there are two kindred matters to which in closing 1 wish to refer,” said Air French. “The first is the competition of house-to-house traders. The highest rated part of any town, no matter upon what bisis the rates are levied, is the principal shopping centre. It is not' known, as it should be, that in our town some of our traders have to pay hundreds of pounds in rates. With rent or interest on buildings in addition, the result is that only well-established businesses can attain success, and with the majority it is a constant struggle to keep going. A small trader paying from £2 10/- to £6 per week rent is making a considerable contribution to the maintenance of roads, which his house-to-house competitor can use for a hawker’s license fee of less than fivepence per week. While recognising that a number of men have eked out a precarious livelihood by such means, and are worthy of consideration, yet some adjustment is necessary. "The other subject is the increasing number of businesses in country towns owned and controlled in and from other centres, more especially the four chief cities. This association Jias no definite conclusions to bring forward. It does think the question requires study, because of the growing displacement of married men controlling small businesses, and ensuing from that displacement, in addition to the increase of unemployment, is the burden that increases on those who remain, lhere is also the further difficulty borne testimony. to by valuation officers. Iwo business premises may be equal in situation and in buildings. One has an established business in tenancy willing and able to pay a fair return on the outlay; the other tenant is one of the apparently increasing number unable to continue unless the rent and rate burden are kept below what is the normal standard. “Generally the increase in civic expenditure has grown in greater ratio than the trade of country centres, which intensifies the difficulties in facing outside competition which only intrudes when others have done the pioneering work of developing a trading centre. “In conclusion, we can claim to have shown some enterprise in our various businesses, and a disposition to view our service as but a part of the whole, and with a desire to keep the standards of life as high as economic circnnistane'es will allow, we pledge ourselves to assist in obtaining a fair deal to all.” (Applause). In dealing with the burden of taxation, it was pointed out that at the last meeting of the association the greatest burden of unemployment taxation was placed upon shoulders least, able to bear it—viz., wage and salary earners, and that that sacrificial levy had been used to subsidise some items of the Government’s expenditure, local bodies’ works, and private individuals.”

Mr. V. L. Westerman proceeded to supply data to show that the method of imposing what is supposed to be a five per cent, sales tax, brought it to ten per cent. It was an indirect tax understood to be paid by the ultimate purchaser. It was impossible to do so in many instances and for various reasons. When it was collected the cost of collecting brought the l/jvy above ten per cent. That burden was multiplied by the 125 exchange rate. These imposts were totally opposed to the recognised canons of just taxation, and had undoubtedly restricted trade. In addition to the millions these charges had taken from the mass of tho people, the uncertainty of what would happen next was preventing the expansion of business. Factories especially found the working of the sales tax most irksome and hurtful. Surely with the promise of better times, the people should have relief from such penalties, and the traders from tho worry and labour of filling the demanded returns. (Applause). Air. J. F. Jones joined in felicitations to Air. Callen and the new Government. Changes were requisite. The interests of business men were wrapped up in the welfare of the workers of the Dominion. Foremost was the need to keep heads of families in full employ-. Air. L. J. Harvey referred to the need of insisting that, imported goods should be branded with the country of origin.

Mr. G. H. Roach urged that at tho first opportunity we should adopt the practice of the Australian Customs law in imposing duties at per dozen or per lb. instead ot' a percentage on cost. At pi esent, if a British-made article cost twice as much as a foreign article made with lower paid labour, then the duty imposed on tho British article was more than twice as much as that on the foreign article. By the flat rate, instead of increasing the variance as the present method did, it would lessen it.

Air. 11. AV. C. Baird said the sales tax seriously affected small manufacturers and tended to close some of their businesses. MB. CULLEN’S REPLY. Air. Cullen on rising was greeted with applause. Air. Cullen said he had to thank the business men of Hastings for the opportunity of meeting them. He appreciated the reference to the Prime Minister, and tho offer to cooperate. That offer he would willingly accept. He realised if he sought information, it would be supplied and he could depend upon it. He thanked the meeting for the references to himself. He realised how the charcter and abilities of Mr. H. M. Campbell had won wide recognition. Ho was fortunate to have such an opponent as Air. .Campbell, and their contest he believed had raised the mutual esteem in which each held the other. There had been various statements appearing in the Press respecting the new Government and its work. Suffice it to say their pre-election programme would be proceeded with as quickly as was possible, lie could appeal for co-operation between town dwellers and country dwellers. Each was necessary to the other. He was well aware how tho sales tax operated. One business man lie knew did not pass on the burden until he was faced with failure. It was a terrible tax, and should be repealed. The high exchange did not operate to the benefit of the farmers, as some people claimed. In some instances it worked for depreciated prices instead of tho reverse The Labour Government would control credit, and debentures could be raised by the people collectively at least as well as by individuals. The raising of the exchange was an invitation to overseas traders to enter into competition with our own people. The Labour Party viewed the matter seriously and its policy was to prevent the flooding of the country with firms like Boots, the sellers of chemical preparations. They wished to retain in service the trained chemists now operating. His first interchange with the president was in connection with the Karamu Settlement. (Laughter). Certainly the men would have been better off with a few days work per week than scratching along as they had to do on the settlement. He had been asked by the Minister of Lands to give a full report of the position.

In regard to the shops holiday, Mr. Cullen ho knew the difference in the trading conditions between various towns. He did not think many would advocate that such a matter should bo taken out of tho hands of tho local communities, and everyone be forced to observe one special day. So far as ho was concerned he would certainly be guided by the wishes of his own constituency. He did not think that the new Government lacked men with business experience. The Hon. the Minister of Finance had long association with both wholesale and retail business. He was also a man of wide reading. He recognised he was trusted to represent the whole of the electors of the district. He certainly valued the offer of the Retailers’ Association to co-operate with him, and he would, come for information in the future. (Applause).