LOSSES UNDER STATE CONTROL.

Manawatu Standard, Volume XLVIII, Issue 240, 7 September 1928, Page 6

LOSSES UNDER STATE CONTROL.

Included in what are termed the “key” industries of Britain are coal, power and transport. They are all important, but during' the war, when they fell into the hands of the Government, State control proved to be extraordinarily inefficient and costly to the taxpayers. The output fell steadily throughout the period of control. Even the great need of the country during the war, with £40,000,000 from the Treasury thrown in, could not prevent production from falling while the' industry was' under State control. Where, in 1913, the output had been 287 million tons, it was only at the rate of 216 million tons in the first quarter of 1921 which ended the State control period, and from a profit of Is 64d per ton in 1913, there was a loss of 7s per ton in the first quarter of 1921. Under State control the cost of the production of coal rose from 9s 5Ad per ton in 1913 to 40s 3d per ton in .1921, and although the number of persons employed in the mining industry rose very considerably, the output per employee declined from 256 tons in 1913 to 178 tons under State control in 1921. In Germany the State mines worked at a loss during the period from 1903-15 of £2,500,000, with a further loss of £2,000,000 in 1916 and of £42,000 in 1917. Yet the privately owned paid their way, and their output per employee avqs considerably in excess of the output per State mines employee. Taking a three-year period, 1911-1913, the average was 269 tons in the privately owned mines against 227 tons in the State mines in 1911; 276 tons against 248 in 1912, and 280 tons against 258 in 1913. The State mines in 1924 were leased to a private company, the State remainingl as a shareholder, but definitely renouncing the socialisation or nationalisation business. In Russia, under Soviet control, the Donetz mines, which in 1913 under private ownership had an output of 22.99 million tons, fell to 14.58 million tons in 1924, although the Russian miners worked on an average one hour’s overtime a day. Similar experiences, are recorded in other countries Queensland and India for instance —under State ownei’ship. Ihe British railways were run at a loss and so were tfie American railways when the State interfered and took over the management. In few, if any of the European countries do the State railways pay, France, Denmark, Switzerland, Roumania and other countries showing a loss on their working. Most of the Australian State rauways are in the same predicament, Queensland being in the worst plight with an accumulated deficit of some £16,000,000 over a period of twelve years. When it comes to State shipping the record is one of continuous financial failure. The losses on the Commonwealth (Australian) ships have been approximately £14,000,000. Those on the Canadian Government merchant marine represent accumulated losses betw r een 1921 and 1926 of close upon nine million dollars, and in four years, 1924-1927, the United State Shipping Board (Government controlled) piled up losses of over 107 million dollars. State control failed miserably in each of the cases we have cited to produce other than increased taxation which the taxpayer had to meet.