THE ASSOCIATED CHAMBERS

Otago Daily Times, Issue 23648, 4 November 1938, Page 6

THE ASSOCIATED CHAMBERS

Courage needed i i

I FACING THE FUTURE v. 4 -' _ - BUSINESS CONDITIONS ■i ADDRESS TO ASSOCIATED ; CHAMBERS r » "'. '• }: ' •. ’a ] ADVICE TO GOVERNMENT i • (Special to Daily Times) I. AUCKLAND, Nov. 3. I” It is our duty to face with courage the conditions and the knowledge of coming tendencies and events, and I frankly admit that it needs courage to make a careful survey of the future,” declared Mr A. G. Lunn, of Auckland, summarising the observations made in his presidential address to the annual conference of the Associated Chambers of Commerce this trforning. “The conditions facing the commercial community are difficult in tWa extreme,” ;;Jie--added._; “and, .it, 'be-: haves employers to see that every t effort is made to improve the technfcal efficiency of plant and methods of working, and to exercise the greatest thrift and economy in industrial arid commercial administration in order to lessen the difficulties facing business,, in ,the coming years., . * 5“ But even tms;” Mr Lunn,.-continued. “ will not avail commerdial* men unless the Government will also recognise the serious portents with which they are faced Uf falling export pncesf arid decreasing primary production. These cannot; but-reiult in a lessening of our national income,, especially while commerce and industry are checked from .expansion by their , present ■ crushing .'burdens of taxation* ; >. Policy “to Avert Disaster” i“lf,-"h6tvever. the* Qoverrimertt Wfll recognise that intellectual integrity must take precedence .over surface consistency,” Mr Lunn declared, even at the risk of displeasing some or its more extreme supporters, it will take trill and serious cognisance of the conditions facing us. and do as any good business man would; dp—that is. use every effort to avert disaster by working on the following lines:— (D By exercising the strictest ; economy in administration. *(2) By endeavouring to restore a soirit of confidence in the future among the commercial, industrial and financial classes of the community. . . , ,‘(3) By ceasing to interfere and comI pete with the business ?men .of; i the country. 1(4) By reducing the enormous ? burderi dfAffixation under which ; ,'we -a're now 'staggering. ■ ;(B) By realising that, desirable as ) may be large social amenities and \ high wages,' they can be mam- } tained only during times oi t prosperity and of rising-national ! income, and that it is impossible ; to maintain them at the same rate during; times; of depression. Attitude to Government ‘Eariier iu his address Mr Lunn mede. reference*"to the attitude of the Associated Chambers tq.the- Government. “As we are a tion-party'organisation, said. “it is no concern of ours the charge on a ’-number of occasions from, different Governments, however, trial we were expressing views which Were intended-to* be,-in the nature,of pjrty political propaganda. That reaction to our activities was, no doubt, due to nothing more than keenness of controversy at the lime, because we cannot, in our work, be convicted of political partisanship. We have cooperated- 'with. ;-and criticisedthe actions of. a number of different Governments. . •I ■ . , <■ .. The disposition ef pplitcial . parties does not in any way affect our readiness to extend our help, advice, and :d-operation, and ouf honest criticism and comment, in connection with those national ,rque3tions that come^ .wunm DUr orbit- and- competency’ Mr .liunn continued. “We are entitled to ask. yt whatever Government is in power that they give full arid fair consideration to the carefully considered views Df; those matters which' we may lay brifore them, I Mr Chamberlain’s Views i'We .do pt> more; than follow the example' of the Association ■of British Chambers of Commerce, and to indicate the- consideration meted out ' to them I would draw your attention to. the remarks of - the British Prime Minister (Mr Neville Chamberlain). Srieaking at the- luncheon- meeting of the Association of British Chambers of Commerce on October 14. 1937. Mr Chamberlain, .said:, . ... -

' Broadly speaking. ,it seems to me the proper function of the Government in relation to industries is not ■to cramp or to suppress individual it is rather to try to create the conditions under which the activities of trade and : commerce can jinost successfully be carried on.

i“ 1 Now, an association like this, comprising many forms of trade and commerce.’ Mr ■ C|hamberlain ■ added,. ‘ necessarily gathers up much of the material which must be taken into account in framing ti wise trade policy fob the community; and so it seems to, me that one of. the greatest services which it can render to industry arid to‘ the community as a whole lies’ in; its ability and its readiness to make that material available to the Government of; the day. You have .rendered that service in the past, and I am confident that you are, going to render it in the future.’ !*; • The problems facing the Government of this -.country.” Mr Lunn added. “ are similar, in man y respects to those iifst referred to,.,and the commercial community, through their chambers of commerce, are Quite ready to do for the Government of New Zealand what Mr Chamberlain requested the British Associated Chambers of' Commerce to do for the British Government.

CIO lor xne ormsn u'jvciuiucm. j POWERS OF MINISTERS < arbiters of. individual. ■„ RIGHTS tiEW LEGISLATIVE TENDENCY (PkK U.NTTEb I’KEriH AHSOCIATIO.N I ■ AUCKLAND. Noy. 3.. *• History tells us with no uncertain voice that the separation of judicial from executive power' has been proved to> be essential to the maintenance of thfe rights .of the•,individual,”■ ?aid Mr N,' B. Spencer.' of Auckland, at the conference of the Associated .Chambers of? Commerce to-night, Wheri criticising recent legislation constituting Ministers of the? Crown as the'final court of appeal in matters affecting the rights of the individual. Mr Spencer mfeved ’•the; adoption, of a remit drawing attention to this “.growing .tendency.” and urging the revival of the traditional .rights of British subjects in| the-matter. s'The right of appeal to a tribunal which is entirely independent of politics or any other influences lies at trie very root of.-. British justice,” he said) Tije interpretation of the law and the administration,of, justice .. were being placed more and/more in the hands of. Ministers 6f the'.Crown and departmental officers. who were, . .in most cases, devoid of the necessary professional qualifications or experience.- ~. 1 '

GRAVE CONCERN

SOCIAL SECURITY BURDEN •V VIEW OF FUTURE (Special ro Daily Times) AUCKLAND, Nov. 3. “The national, superannuation and health insurance scheme is to come into (.operation on April 1,, 1939, from which drite ,--companies will; pay the Special‘ tax of one shilling in the £ on their profits. This addition to the already crushing burden of taxation borne' by companies must have a most serious effrict on- joint stock enterprise, and' I cgnnot but consider the duMook with grave concern,” said Mr A. G. Lunn in his presidential address to the conference of the Associated Chambers of Commerce today. "1 do not intend to say any more on the subject .other than to rescue the principles involved from the mass of detail;in which they have become submerged, and to put them before you. For this purpose I .will borrow from Dr. TUN, Carver, -.professor of political economy -’emeritus, ,Harvard University who gave a striking address in California' this -year on the question .‘Cari’-a Government Provide Adequate Social Security to the Individual Without Destroying the Individual's' ;C?haracter?' • - “Absurd Doctrines ” “As Dr, Carver says, an evidence oi widespread demoralisation is the prevrilan'ce of strange and absurd economic doctrines. People who know better repeat these doctrines without shame orjsense of moral responsibility for what', they say... One such doctrine is that if money is taken from those who produce and given to those 'who do not, the latter .will. then buy the products of the former and make everybody prosperous, This doctrine is’repeated in various, forms and in diverse tongues, but the gist is always the samd If money is' taken from one class and given to another class, the latter class will spend the money, and this will make the country richintrjuding;those fl-om whom the money was, takep! . If it were proposed that producers- should give products directly -to . non-producers, without the use of money, no one could pretend that it would enrich . the r producers. The principle 'is the same whether money is used qr not. 7 ■■■ “Dr Carver 'goes on to say: The kind of social security that can -be created by expanding industries and assuring £very competent worker of a job will never ...demoralise anybody or destroy his character. There are, however,-many who are incapacitated for productive work. They must be taken . care of. The next problem is to-find Ways of providing for those who cannot find a living. It is important that those who receive this kind of relief, or epj.oy this kind of ■security, shall not regard-it as a matter of right or of justice. They, should realise that they receive it because they live under a system which produces-‘such abundance as to .make this relief possible, and that it comes to them through the generosity of .the public. It is important, also, that relief should not bo so'generous as to take away the motive for work on the part of tijose who are able. It is not easy to take care of those who are really incapacitated without demoralising those'who can work, and ought to work.’ “ Dr Carver, continues: * The way to provide -adequate security for all classes is’ to encourage enterprise to expand until all competent workers are sure of good jobs, and to provide for the physical needs of those who ■ arib incompetent. -.-We-, showed, .from 1896 to 1914, 'thrif we could do the former. It was done by encouraging free enterprise to produce new things to supply new wants. It is only in an atmosphere of freedom that creative work of the highest order is ever done, Wfe still recognise this in every field 'except business. We insist on freedom of speech and of the press, freedom 'in religion, in scientific in- , vestigation, in education.lt .is-equally 'important, if ’we could ! only see it, that there shall be freedom in productive enterprise. Give enterprisers encouragement and they, will start new industries as" they' have done in the past. It ; ‘is important- that the money raised to. provide social security shall not be rinsed in such a way as to .create social insecurity. If it is raised ‘in' such a way as to repress -industries, to cause" the closing down of industries or prevent new ones from starting, you will .increase .unemployment. That will destroy one kind of security while trying to create another kind. . Effect of Mriderh Trends “Experiment as we may in this Do- * million,” ;Mr , Lunn Said, , “we cannot gel away from the fact that if we are ,to live within our means, meet pur debts, provide employment for all, and maintain our standard of living, we will never do it by restricting the production Of wealth, nor yet by consuming that wealth at a pace that cannot be maintained; nor by shortening working hours, which only employs more workers to produce • the same output, and does not increase output; nor can we do it by raising wages, and thereby costs and prices: nor by borrowing for employment.

“If we are to increase national production above the level of consumption,”. Mr.’ Lunn concluded, “we need td-'wprk harder and increase our output without increasing costs; to save income so as to meet our debts, provide capital for productive enterprises, and build up reserves against a rainy day.” FLOOD LOSSES GOVERNMENT URGED TO ACT SYSTEMATIC REAFFORESTATION <Feb United Press Association) AUCKLAND, Nov. 3. A remit referring to the substantial loss ; of property resulting from Hoods in New Zealand was brought forward at the Associated Chambers of Commerce conference to-day by Captain S. Holm (Wellington). It urged the Government to take steps to prevent further destruction of the natural covering of steep country, and to proceed with a systematic policy of reafforestation and clearing of streams, including assistance to private landowners. '“ 'Captain Holm'referred to the Esk Valley catastrophe and the heavy silting of the Waikato, Wanganui and Hokitika Rivers, which had become practically unnayigable. An amendment., moved by Mr J, S. Skinner (Dunedin), to delete the words ‘ including assistance to private landowners ”• was lost, and the remit adopted. -