HERITAGE OF THE WAR

Hokitika Guardian, 13 May 1929, Page 5

HERITAGE OF THE WAR

STATE INTERFERENCE, (TAXPAYER.)

The admission that the Government has the right to standardise goods and to investigate prices and services does not imply that .tlie-'.Minister of Industries and Commerce should be clothed with authority to exercise all the powers conferred, upon him by the Board of Trade Act. These powers, if literally interpreted, would enable tho Minister .without any further authority, (1) jtOi -prevent and suppress methods of competition, trading and business; (2) to fix a maximum or. a minimum price for any class of goods or services; (3) to differentiate in the treatment of different persons and classes eff persons in respect to goods and services and prices, and (4) to regulate and control industries in any other manner he deemed -necessary for the maintenance and prosperity of industries and for the economic welfare of New Zealand. The Act, as may be gathered from these outlines of its provisions, embodies all the most drastic features of war time' legislation without the least excuse for tlieir retention. It is an open question, indeed,-; whether 6r i'iiot' its -/contihUarico upon the Statute'.' Book/'-,’is not an offence against tile' " spirit, if* not against the letter df the Constitution. In any' case the speedy repeal p 4 this pernicious enactment'wdulci be ap appropriate , expression d.f?'-/fche forward policy of the new Government and a happy realisation of the good intentions of.ifs predecessor. ~;:■ss% V- : ••.fTifjthis. connection a'recent pronounUenLjn'fc Professor of Economics at Victoria University College, is entitled to even more' publicity than it has yet received. “The better alternative seems to be,” said the professor, assessing the respective merits of State and private enterprise, “ to keep the business men and ,the politicians in different spheres and let tuem balance each other. AVith State industry, the business man, now an official, is more powerful than ever, because he has the State with him and not against him. , The future seems to indicate ,th-at the best policy is private enterprise, subject to social contril by regulative .eAhirtnssiqn.' and destructive .fcdmpetiiioh between ppblic niid private utilities are to he depiecated/ In ! any’ case purely trading and commercial 1 functions are unsuitable aveiWes ofj State’ activity. Natural monopolies are the only line Wheie success seems promising. Rigid accounting would show that almost all State undertakings of a purely industrial character are run at a loss.” .The professor takes pains to explain . that “financial services” are not.lncluded in liis category .ffailiveH „ nd. ~ the poiiifV he wislies' make neqd not bo, disputed. It will be well to remember, however, that even “ financial vices ” may entail, the State in loss unless they are rendered with a-,duo regard to economic conditions. - 1 „t. . .AVjellington, May 9th., "1929. ~1