STATE CONTROL CRITICIZED

Southland Times, Issue 23651, 28 October 1938, Page 8

STATE CONTROL CRITICIZED

Head Of Employers’ Federation EFFECT ON INDUSTRY OF SOCIAL SECURITY (United Press Association) WELLINGTON, October 27. . A long review of recent events in New Zealand and abroad and an analysis of their effects on the economic life of the Dominion are contained in the presidential address of Mr A. C. Mitchell at the annual meeting of the New Zealand Employers’ Federation. “Individual control of one’s business, on which the prosperity of the Dominion has been built up during the past century, is making way for a system of bureaucratic and oppressive Government control, not only of our business activities, but of the entire social system,” said Mr Mitchell. “The overwhelming vote of confidence tendered ti the Government at the recent election is the clearest possible evidence that there is a majority of the electors prepared to adopt the popular and perhaps natural course of endorsing the policy which appears to offer the maximum immediate reward for services given rather than to take the long view which involves calm consideration of the ultimate consequences to themselves of the policy being put into operation today ” Mr Mitchell said the Government’s social security legislation would impose more crushing taxation on industry. With every expansion of Government control of industry there must necessarily be a corresponding reduction in private ownership and control —on the profits of which the State had to rely for revenue through taxation to finance its own undertakings. This in turn involved an increased pro rata levy on those remaining in business. Any substantial fall in overseas prices must reduce the revenue received by the Government through ordinary taxation channels. The Prime Minister (the Rt. Hon. M. J. Savage) and the Minister of Finance (the Hon. W. Nash) had stated that they were relying upon the gradual progressive development and expansion of production and revenue from the safe of such increased production. , SCHEME OF INSULATION “We have been assured that the Government has developed a scheme whereby the Dominion can be effectively insulated against the possibility of another world depression,” said Mr Mitchell, “but experience has proved that in such circumstances only those countries, trading concerns or inaividuals who have taken the precaution of building up reserves in prosperous times can long survive economic disaster.” Mr Mitchell declared that the overseas trading figures for the first seven months of this year disclosed the fallacy of the contention that revenue from the development and expansion of production would assist in providing funds to finance the social security scheme. After reviewing the international situation, Mr Mitchell drew attention to the position that would arise should men be called on to leave their positions in industry and fight and he. foresaw that New Zealand would have difficulty in meeting her obligations because of reduction of revenue from production. , , , „ Mr Mitchell emphasized that the views he expressed were not necessarily the opinions held by a majority of the members of the federation, which comprised men of all shades of political opinion and for that reason the federation did not permit discussion on purely political questions. Neither were his remarks a criticism of the Labour Government as such. It was his duty es president to express his personal criticism of any legislation affecting the welfare of employers and the industrial relationships of employers and workers as he saw it and in doing so to assuie the Government that it might rely on the fullest co-operation of the federation should such co-operation be called for in drafting legislation to avoid pitfalls prejudicial to the interests concerned and in doing everything in tile federation’s power to ensure successful results from any legislation written mto the Statutes of the country.