STATE-OWNED SHIPS

Southland Times, Issue 25763, 29 August 1945, Page 6

STATE-OWNED SHIPS

Politics In Business

When a Government departs from its proper fields of activitj, and sees possibilities of competing if trade and commerce with existing busness enterprises, there is hardly any limit to the price that will be paid fol a Socialist adventure. A classic experiment of fie kind was the Government-owned Commonwealth Shipping Line in Australia. It was established in 1916—h the middle of World War I—and floirished for a few years under favourable circumstances. After 1921 the Line steadily lost money, and the Gozemment reorganized the business under the control of the Commonwealth Shipping Board. Although the; capital was written down by £8,00(,000, the Line continued to lose half a million a year. This could not go on for ever, so eventually the ships Mere sold. The ultimate loss to Austrilian taxpayers was £8,124,549. A significant factor in this experiment in State Socialisn was the attitude of the workers concerned. A report published at the tine said: “Their employer was not the'execrated capitalist, but the nation 1 at large; they enjoyed the best conditions in the world. Yet with singular perversity they have waged aganst the Line a ruthless vendetta. The Line has a doleful record of srikes, pinpricks, efforts at job control and general indiscipline. The losses that have been incurred have been I caused in some part by the periodica hold-ups.” There is the story of a Socialist experiment in the control of one sector “of the means of pwduction, distribution, and exchange. State ownership and control is no guarantee of efficiency or of improved service to the community. It lacks the spirit of initiative, “drive,” sagaciy and service that is characteristic rf free enterprise. Political considerations do not blend with business maiagement. In spite of the lessons <f experience, our Socialist-minded Government is determined to take ove: the Bank of New Zealand and the Irternal Air Services. Who are likely to fenefit? Again it will be the public that pays.