Government Interference in Business

Manawatu Times, Volume LIV, Issue 7193, 27 June 1933, Page 5

Government Interference in Business

WHAT ARE THE FACTS? ADDRESS TO FEILDING CHAMBER OF COMMERCE. The burden of tho address delivered to the Feildiug Chamber of Commerce last evening by Mr. A. O. Heany, organising secretary of tiro Associated Chambers of Commerce, was that there was too rnueh Government interference in business.

In the course of his remarks Mr. Heany said that some of the measures that had been taken already by Parliament in face of the depression were contrary to sound principles and economic laws, and he instanced the legislation between mortgagors and mortgagees. By such actions serious repercussions wore felt throughout the country, and this was only to be expected when the .State stepped outside its proper sphere and dabbled in affairs of private business which it should leave strictly alone. Such assumption by

government of control in matters of trade, industry and commerce was widespread in tho Dominion to-day. The fact was that practically every act of State interference with private business, recent or of years’ standing, had had the opposite effect to that intended. The best interests of the people had not been served. Upon that good and sufficient ground was founded the whole resistance, of those with commercial experience, to intrusion by tho State into business affairs, whether by restrictive legislation, harassing regulations or the growing activities of Government departments aud local bodies, ihe .State was endeavouring to deal with different sets of conditions by laying down what shall not be done-, instead of giving private enterprise the opportunity, of showing what can be done, ihe limit of tho ability of the State in trading matters was negativism, and the most positive contribution the Government could make was to allow every freedom to private enterprise in order that it may be able to function to full advantage. In one direction alone, that of the" cost of Government, private enterprise was being burdened beyond its means. It could not afford to maintain services that were founded on earlier prosperity, but the necessary downward adjustment had not, despite measures of economy, been properly effected. Our Public Service was dependent for its pavment on the fruits of private enterprise, yet a great deal of its work was directly opposed to the interests of its providers. Privileged trading by State departments and the enforcement of arbitrary regulations were cases in point. Concluding, the speaker claimed that four things were wanting to .be dealt with, namely: (1) The reduction of the costs of national and local government on a wider basis than has yet l,cen attempted; (2) cessation of Government interference in business and an overhaul, for the purposes of repeal or revision, of existing legislation and regulations restricting private enterprise; (3) the placing of State and local body trading concerns on the same basis as private enterprise as regards taxes, rates and other charges and conditions; and (4) the subordination to the public interest of the excessive zeal of State officials. At the conclusion of the address, Mr. A. J. Kellow, who presided, remarked that Government interference in business commenced with the regime of the late Richard Scddon, and it. had, he confessed, grown enormously since. He blamed the cities for this—they had rather let the country chambers down, by permitting the election of members to Parliament pledged to enforce more Government interference in business. When one looked back it was likely that the first Government venture in business was with the railways and later came tho attack on high insurance premiums in the establishment of State insurance. With the war State interference developed rapidly and once it got under way it was hard to stop. Concluding, Mr. Kellow was afraid State interference would continue.

Mr. C. E. Taylor (Mayor) asked whether the Associated Chambers had marked out any particular phase of local body trading which should be handed over to private enterprise. AVould Mr. Hcany suggest that internal transport, gas supply, milk distribution and other like public undertakings, should be handed over to private control?

In reply Mr. Hcany claimed that undertakings of the kind should be taxed to place them on the same footing as private enterprise. The extent to which local body trading was encroaching upon private enterprise was such that in time, the private enterprise would be entirely eliminated. Air. -I. B. Tingcy expressed the view that there should be interference by Government in business and in support of this view recalled the appalling conditions in industrial concerns which had compelled the Governments of all countries to step in to protect employees. The point was how far, for the- common good, should Governments interfere? He admitted that while State interference was necessary it could be overdone. However, be commended the activities of the Associated Chambers for that organisation was in the position of closely watching all legislation. The chamber’s thanks were accorded the speaker on tho motion of A-lessrs. A. J. Humphreys and C. S. Jeffs.