ANNUAL CONFERENCE

Southland Times, Issue 22157, 27 October 1933, Page 8

ANNUAL CONFERENCE

CHAMBERS OF COMMERCE. EXCHANGE CONTROVERSY. (Per United Press Association.) Wanganui, October 26. The Associated Chambers of Commerce Conference opened this morning. The Mayor (Mr N. G. Armstrong) welcomed the delegates and Mr J. P. Luke (Wellington) replied on behalf of the visitors. The president, Mr A. S. Burgess (Wanganui) delivered his address. The executive’s report brought forth a discussion, Mr W. Machin (Canterbury) taking strong exception to the following clause —“The action of the Government in interfering with the rate of exchange invoked throughout the country an expression of disapproval seldom before exhibited. The action was doubly deplorable because the executive of the association in an endeavour to assist the Government to deal with present-day problems had a short time before offered the services of a’ committee of the association to co-operate with the Government.” Mr Machin held that some members did not agree that the action of the Government in raising the rate of exchange was deplorable. Mr L. A. Paish, his Majesty’s Trade Commissioner, referring to the increased exchange in a subsequent address said he would not express an opinion as to the desirability or otherwise of the Government’s action, but he said New Zealanders should not criticize the Government out. of the country. When writing to friends in the Old Country they should tell the story that the Government was justified in its action and do all they can to improve the relations between the two countries. Mr H. H. Sterling, speaking to the conference, anticipated that the annual report of the Railways Board would be released at the end of the .week, saying the passenger tickets issued during the past year showed an increase of 3470. Not only had the board s experiment shown an improved financial position, but better service to the public had been provided. The conference here to-day urged that further measures of economy be effected by the Government in order that the demands upon taxpayers be brought more into line with their ability to pay. Under this head, the chambers urged: (a) That the recommendations of the National Expenditure Commission not already adopted be put into effect, including reform in hospital administration, reversion to the contract system in public works, amalgamation of Government departments, reduction in Government inspectorial staffs. (b) That in completion of the 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 the Commission. The Chambers also urged that drastic revision of the local body system was vitally necessary and asked that the promise of the 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 the existing departments of the State, thereby reducing the field within which private individuals may earn a living. The chambers recommended that as it was the business of the State to govern, it should withdraw from those services which could be promoted by private enterprise, such as the State coal mines, State Advances Department, Public Works and State dental services. It suggested that the State and loc,il body trading concerns pay customs duties, land and income taxes, land and municipal taxes and prepare balance sheets in accord with the practice insisted upon in regard to private enterprise. An amendment to delete the State dental services from the scope of the remit was lost.

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