STATE ENTERPRISE

New Zealand Herald, Volume LXXV, Issue 22991, 19 March 1938, Page 20

STATE ENTERPRISE

AUSTRALIA'S LESSON ADVICE TO DOMINION PROPOSED STEEL INDUSTRY [FItOM ouh own cokhespondent] MELBOURNE, March 11 Beffirenco was made in a recent editorial in the Melbourne Herald to tlie New Zealand Government's proposals for the establishment of an iron and steel industry in the Dominion. After reviewing the history of State enterprise in Australia, the newspaper said "the reasons for Government failures are many, but arc soon apparent to those who give the matter study and thought. New Zealand Ministers and members of Parliament would do well to examine tho history of iron and steel in Australia. "Iron and steel production is a port of the foundations of industrial wealth and national power. Tho Dominion's ambitions are, therefore, natural," tho editorial stated. "They recall a momentous controversy in the first and second Australian Parliaments, The Barton and Peakin Governments proposed to offer a bonus for iron and steel production to stimulate an industry then fighting for life against tho maladies of industrial infancy. Labour proposed that the Government itself should take up tho business. Parliament decided to leave the undertaking to private enterprise, granting every facility for production within the Ministerial power. Pretentious Programmes "At that time Australia had comparatively little experienco of Government ownership and training. During tho following years it acquired more than enough to prove that tho Parliament's decision was a sound one. States, as well as the Commonwealth, entered upon pretentious industrial and trading programmes. The Western Australian Government, led by Labour enthusiasts, established several factories, and after heavy losses and acute public dissatisfaction was left with a loss of something more than £2,000.000. "Tho Molman Government of Now South Wales entered into Government industries wholesale, and in tho same wav piled up wreckage which had cost millions. Queensland spent millions nP°n squatting properties, and established Government butchers' shops with the idea of giving tho people cheap meat. It lost more millions than oven New South Wales. The Commonwealth Goveminent established u shipping line. It had cvorv advantage, but had to bo almost given away after losing about £1.",000,000. National Debt Increase "The Governments showed that as industrialists and traders tlioy could make almost anything except working expenses, let alone a profit. They added scores of millions to the national debt, and the losses are still accumulating because we are still paying interest on the dead capital. Where tho Governments failed private investment has conspicuously succeeded. Tho story of iron and steel production and manufacture in Australia, as led by tho Broken Hill Proprietary Company, is ono of consistent growth iin industries which equip the country for defence a lid provide the people with employment. Tho iron and steel industry is sf ill voung. but it directly employs about' 15,000 workers and distributes each year considerably more than it.000.000 in wages. "The subsidiary industries which iron and steel have brought into existence are of corresponding value. For instance, the Broken Hill Proprietary ; owns a fleet of six ore-carrying ships i and, in addition, its iron ore provides ' freight for a score or so more."