CHAMBER OF COMMERCE.

Manawatu Standard, Volume LVIII, Issue 178, 28 June 1938, Page 5

CHAMBER OF COMMERCE.

ADDRESS BY MR HEANY

THE BUSINESS OUTLOOK

The monthly meeting of the Fending Chamber of Commerce was held last evening, the president (Mr A. J. Humphreys) being in the -chair. Also present were Messrs C. M. Sargisson, D. Finlay, H. T. Simmonds, A. C. McCorkindale, IT. .Tate, A. C. Buist, P. B. Desmond, V. E. Smith, and the secretary (Mr G. J. Fitzpatrick). The chairman extended to Mr A. 0. Heany (secretary of the Associated Chambers of Commerce) a cordial welcome and recalled that three years ago. Feilding had been favoured by a visit from Mr Heany and those who had had the pleasure of listening to him on that occasion had been treated to an eloquent address. Mr Heany said that individual businessmen, company directors and others, who had sounded a note of warning from time to time about the lavish public expenditure in New Zealand to-day, had been accused of obstructionism when the; fact was that conditions were prosperous, business had improved, and the people ( were enjoying better times. What was the explanation for their apparent stupidity in advocating something that would deprive them of profits? There was no. doubt that there was plenty of money about, and business was better, but businessmen looked a little further than that, and asked themselves 'whether the country was really getting back to work, conserving and employing capital, producing new goods and forging ahead on a stable basis, or whether the stimulus of to-day was largely artificial through the deliberate redistribution of existing income which took from one and gave to another, and which did not add to our income. Enormous public expenditures by politi- J cal agencies were dissipating potential j wealth. These spendings were what businessmen called overhead, and were not productive expense. The money had come from productive effort, but it was not being re-employed in. the same way. Before the war taxation took 2s 4d in the £ of the country’s production, whereas in 1936-37 it had gone up to 5s 5d in the £, said Mr Heany. In other words, there was to-day more governmental overhead and less capital left for private enterprise with which to experiment in new enterprise, providing new jobs. The speaker said that a factory with a handful of employees was of more national worth than the marble structures of political agencies. Thousands of men had been drafted on to public works undertakings and were then described as being in full-time work, and so were considered to be happily disposed of, at the same time as the basic primary industries of the country were crying out for man power and facing the tide of rising costs. The country and ownership had been so discouraged by latter-day additions to legislative restrictions and deterrents of earlier years that the only notable activity in this sphere was the present attempt to fill the need by publicly-built houses for renting, which was hopeless as a means of filling the nation’s need, and which destroyed the British tradition of home ownership. The commerce of the Dominion was impeded by dilatory work on the waterfront, and goods were having to be overcarried and returned over many miles. “BUSINESS WORRIED.”

New Zealand was being told that the eyes of the world were upon it, but perhaps it was not altogether in the way we would like, said the speaker.. New Zealand might well have a look overseas—at Sweden, for in-

stance, which had decided toinstitute a long-range programme of public works for a period of ' ten years, and to build up, out of surpluses, a strong cash reserve which could be drawn upon whenever it became necessary to stimulate employment. This was a scheme the principle of which had been approved by the directors of one of tli© banks in Australia, despite the present healthy business conditions in the Commonwealth. As it was, New Zealand was more or less acting like a man who was spending the cash value of his life insurance policy which he had turned in. These remarks, said the speaker, were not meant as an attack on the present political party in power in New Zealand, but they indicated some of the reasons why business, in the midst of prosperity, was worried, and sounded warning signals. Businessmen did not as a rule run their concerns “on all cylinders” without making wise and adequate financial provision. at the same time for petrol to get them home again when their tanks ran dry. One responsible officer of an organisation of workers had hailed the present social insurance proposals of the Government because, he said, the community, secure in the knowledge that its old age was provided for, could go ahead and spend all its income. That was a meretricious argument.

On the other side of the picture, said Mr Heany, businessmen had a duty to give leadership and to live up to the obligations which their position in the community placed on them. They, too, must exercise caution in regard to acceptance of - the theory of “priming the pump” by great expenditures of ‘ public funds, and by State assistance and intervention. If they themselves acted rightly, and followed what'' was true, then it was for them to let the people know the, truth. As those to whom -was entrusted the conduct' of business, it was their duty to correct errors of public opinion and to show the nation what the business world were trying to do in their adminis-. tration of industry and the direction of commerce, and to show that the profit system was the best for the whole community. ;l

In moving a vote of thanks, the chairman said he could assure Mr Heany that he had given members something to think about, and the address was very much appreciated. The motion was seconded by Mr McCorkindale and carried by acclamation.