STATE TRADING

Poverty Bay Herald, Volume LX, Issue 18180, 30 August 1933, Page 7

STATE TRADING

LOSSES IN N.S.W.

ENTERPRISES ABANDONED NEW ZEALANDER’S COMMENT (Per Press Association.) WELLINGTON, this day. Commenting on the relationship between New Zealand and New South Wales State trading, Mr. A. S. Burgess, president of the New Zealand Associated Chambers of Commerce, who returned yesterday from a visit to Australia, said lie had been particularly impressed with the evidence'in New South Wales of a swing away from State'enterprise. Industrial undertakings now operated by the New South Wales Government, apart from the railways, tramways, and motor ’buses, were nianily the'residue of a large l number 'esiablished by the various Labor Governments of 1911 onwards. The majority of these enterprises proved complete financial failures and had been abandoned. During the prosperous constructional years prior to 1929 the State brick works, the Monier concrete pipe works, -and' the State metal quarries in -New. ‘South Wales, had been conducted at' considerable profit, due largely to preferential privileges in the supply .of Government material for Governjnent ■ works, partial or complete exemption froln taxation, and similar advantages over private enterprise. In 1932, however, the Monier pipe works was the only one of the three disclosing a profit. Until 1930 the State industrial undertakings had not been subject to income tax, but legislation that year had directed assessment on those concerns pi taxation in respect of transacted business.

The trading results of the State industrial undertakings still operative for the year ended June 30, 1932, were, Mr. Burgess added: —Brick works, loss, £8629; Monier pipe works, profit, £7899 ; metal quarries, loss, £2082; Government Tourist Bureau, loss, £24,405; Leeton canning factory, loss, £17,254; Lithgpw coal mine, loss, £112,000; dockyard and engineering works, loss, £70,145.