More Economies by State

Manawatu Times, Volume LIV, Issue 7298, 27 October 1933, Page 7

More Economies by State

Request by Chambers of Commerce

STATE INTERFERENCE IN BUSINESS CONDEMNED

Per Press Association. AVANGANUI, Last Night. Tic Associated Chambers ,„pf. Commerce, sitting in annual conference here to-day, urged that further measures of economy be effected by the Government in order that the demands upon taxpayers be brought moro into line with their ability to pay. Under this head the chambers urged: (a) That recommendations of tho National Expenditure Commission not already adopted, be put into effect, including reform of hospital administration, reversion to tho contract system in the Public Works Department, amalgamation of Government departments and reduction of Government inspectorial staffs.

(b) That in the completion of tho unfinished work of the commission, and with a view to effecting economies, an independent investigation be made into the affairs of the State Advances Office and other trading departments not investigated by tho commission. The Chambers also urged that a drastic revision of the local-body system was vitally necessary, and asked that the promise of tho Prime Minister, made more than two years ago, to set up a commission to investigate this matter, be fulfilled immediately.

A remit that received support was one expressing alarm at the continued interference by the Government in business by means of legislation, regulations and expansion of existing departments of State, thereby reducing the field within which private individuals may earn a living. The Chambers recommended that, as it was tho business of the Stato to govern, it should withdraw from those services which could be promoted by private enterprise, such as the State coalmines, the State Advances Department, Public Works and tho State dental services. It was suggested that Stato and local-body trading concerns should pay Customs duties, land and income taxes and municipal taxes, and prepare bal-ance-sheets in accord with the practice insisted upon in regard to private enterprise. An amendment to delete the State dental services from tho scope of the remit was lost.

Dealing with unemployment, toe Chambers reminded tho Government that a reduction in taxation for this purpose was essential. It was urged that, where public works arc undertaken for tho unemployed, the Government concentrate on schemes which show a reasonable prospect of paying interest and amortisation, and that these public works be carried out by private contract under tender, and that tho basis of subsidising privato employers engaging unemployed labour on such works should bo one of two shifts of 30 hours in. order that more men might be employed.