The Southland Times THURSDAY, MARCH 16, 1939. The Government And. The People

Southland Times, Issue 23768, 16 March 1939, Page 4

The Southland Times THURSDAY, MARCH 16, 1939. The Government And. The People

TN his address at the annual -I meeting of the Invercargill Chamber of Commerce yesterday Mr M. S. Myers examined, with admirable detachment and insight, the changes that have come into the relationship between the people and the Government of New Zealand. “The distinguishing characteristic of these recent years,” he said, “has been the conduct of the Government of the Dominion by men who have had but little concern with the business of the country, by men who distrust the man of business, and hold him suspect.” Although Mr Myers was speaking mainly from the viewpoint of the business man he made it clear that this official aloofness from practical affairs has been demonstrated in almost all directions. The banker, the farmer, the doctor, the actuary, the importer and even the military expert have found that their specialized experience gives them no claim, in the eyes of the Labour caucus, to play a constructive part in shaping the policy that affects or controls their particular interests. This disregard for the expert can be described, as Mr Myers acutely observed, as “a development of the feeling expressed democratically by the people of the Dominion”—a feeling which includes “the age-old hatred of presumed wealth.” The present Government is representative of a special phase which had its growth in the depression years. It typifies, for the majority of the people, the natural desire to overcome as quickly as possible the difficulties that seem to stand between the average man and a material prosperity. It believes (perhaps not quite so strongly as it did three years ago) that reforms can be instituted with almost instantaneous effect, and that benevolent intention needs only to be expressed in legislation to sweep aside the obstinate facts of practical affairs. A Time For Compromise

But these facts, although by no means unchangeable, will remain basic features of the national economy while the Dominion is dependent—as it must be for many years to come —on overseas trade. Already the Government is feeling the impact of realities and must do what it can to mitigate the effects of drastic legislation and reckless spending. Yet its own previous attitude is the greatest obstacle to compromise and readjustment. The present rate of State expenditure on social services and public works can be maintained only if there is a big improvement in production and a rapid expansion of secondary industries. But the working week has been shortened, thousands of men are on unproductive work, and good farm land is going out of production for the lack of adequate labour. No amount of exhortation will bring about a miraculous increase in production while these conditions remain unaltered. Similarly, business men are now expected to put their money into new industries. But these same “capitalists” have been discouraged in every way—by •heavy taxation and other costs, threats of monetary change, and a spreading network of restrictions —from making what seem to them today to be risky investments. There is a peculiar irony in the ’ fact that a Government whose spokesmen have fulminated with special bitterness against the “dividend kings” has become anxious to encourage capitalist enterprise. Capitalism or Muddle?

According to a recent report in a London newspaper British capital amounting to approximately £100,000,000 will go to Australia this year, partly for munition works, but also for the establishment of new industries. There is no reason why a comparable amount could not have been attracted to New Zealand. In the troubled state of world affairs British capital tends more and more to seek investment within the Empire. But who can blame investors for sedulously avoiding a country whose political leaders regard them as financial gangsters and claim to be building an economy from which capitalism will be excluded? The truth seems to be that New Zealand has had a surfeit of theory and experiment and that the time is coming when the Government will have to think less of its own power and much more of the community’s total interests. Few countries are less fitted for domination by a single section of the people. Co-operation between the Government and the representatives of the different groups—industrial, agricultural and professional —is an essential condition of national well-being. It should be understood, however, that cooperation of this kind is not a matter of precept and ministerial eloquence, but an intelligent acceptance of realities and a shared attempt at remedial action. And the lead must come from the Government.