Government in Business

Manawatu Times, Volume LV, Issue 7006, 16 November 1932, Page 3

Government in Business

MR. A. HOPWOOD EXPRESSES HIS VIEWS

The speaker at the weekly meeting of the Palmerston North Luncheon Club yesterday was Mr. A. Hopwood, of Palmerston North, who took as his subject "Government in Business.” The speaker contended that the action of tho Government in going into business that could have been carried out by private enterprise was largely responsible for the large increase in the Dominion’s national debt. Tho only matters that should concern the Government should be to organise and maintain such armed forces as may bo required to give us adequate protection against invading nations; to preserve law and order; to collect taxes; to run only such departments as cannot be conveniently run by private enterprise, such as post and telegraph, hospitals and charitable institutions, and primary schools; to elect and maintain a Government sufficient only to carry out this work efficiently. Local or municipal governments should concern themselves only with roads, drainage and sanitary systems, water systems, and supervising the erection of new buildings.

Mr. Hopwood quoted figures which he contended showed "how hopeless it if. for Governments to show a profit in trading or business concerns.” Who was to blame for allowing the country to get into such "an awful state”? he asked. "Wo do not have to look very far. Wo are a democratic country, and therefore can only blame ourselves, declared Mr. Hopwood. "Vvhen wo in business wish to appoint a manager, how do we go about it? Wo advertise for applications, and on receiving the replies go through them very carefully. First of all, wc select those with the necessary experience and ability. Personality, honesty, energy count for nothing unless tho applicant has the necessary experience and ability. Having picked on one with these two absO' lutcly essential qualifications, wo then make all sorts of inquiries regarding •his character, personality and career. If satisfied, we give him the job. Now, positions in private business are a mere bagatelle as compared with the responsibility on the men wc place in our councils or Parliament. We handle hundreds of pounds, while they handle millions, and yet we place men into positions to control our country’s affairs without making any inquiries whatever regarding their qualifications. One must specialise in a business to make it pay, and it must bo compact. Yet we expect heads of municipal and Government departments, with their activities spread all over the place, to show a profit.” Under such circumstances, added Mr. Hopwood, a profit could not possibly bo shown. Credit had been a big factor In bringing the Dominion to the hard-up position it was in to-day. Practically all business and trading concerns in Government • and municipalities had been started on borrowed money. Those responsible, and who were now mostly out of the picture, never seemed to have realised that the money they were borrowing would have to be returned with interest. Tho private individual had to pay back borrowed money, plus interest, or go bankrupt. Tho nation and the municipality were just as liable as the individual. The individual as a rule would not borrow more than ho could safely and profitably handle, but with ■ many politicians, tho more they could borrow the better they liked it. Whether the proposition would pay or not never seemed to be taken into account. It was claimed that these losses were balanced by the fact that tho general public received the benefit. That policy would not work, for tho reason that it was impossible, to strike a correct balance. One could never find out where to stop in what really amounted to free social services. Tiv

solution was for the municipalities and the Government, to. drop, regardless of cost, all business and trading concerns. They were and always would be a liability instead of an asset. Mr. Hopwood was accorded a vote of thanks on the motion of Mr. J. Wallace.