MANY HANDICAPS TO BUSINESS IN AUSTRALIAN CITIES.

Star (Christchurch), Issue 18577, 27 September 1928, Page 10

MANY HANDICAPS TO BUSINESS IN AUSTRALIAN CITIES.

MR C. OGILVIE RETURNS FROM COMMONWEALTH. High tariff, high wages, short hours and a low output have resulted in an uncertainty and a lack of stability in the Australian commercial world, according to Mr C. Ogilvie, a Christchurch business man who has just returned from a visit to the Commonwealth. “ Business conditions are not nearly so stable in Australia as in New Zealand,” said Mr Ogilvie. “ Australia will have a few difficult years before her. Of course, a good season, with the resulting increase in output, would make a great improvement. The outstanding feature of business in Australia is the exceptionally high tariff. Taxation is ridiculously heavy, and the cheaper goods are over-taxed. An article valued at 3d is taxed as much as Is 6d, and the tariff on dearer goods is 50 per cent.” BORROWED MONEY. Australia had been living so much on borrowed money that a reflection in trade and commerce was inevitable, continued Mr Ogilvie. This, combined with the unusual labour conditions of short hours and high wages, and the heavy tariff, had resulted in a very high cost of living. Twenty-five years or so ago, when free trade existed in New South Wales, Sydney was regarded as the cheapest place for living in the Southern Hemisphere, but now the cost of living was much higher than in most other places. Many big firms in Sydney were finding things difficult at the present time. On the other hand, many firms were experiencing success, but business generally could not be said to be prosperous. KEEN COMPETITION. The competitive spirit was very manifest in Australian business, said Mr Ogilvie. Competition in all branches of business was very keen, and many new phases of trading were introduced. One large firm had introduced the “ cash-and-carry ” system. Under this, the customer took his article from the counter, paid for it and took it away without receipt and unwrapped. Other firms had the cashdesks at the doors, and customers, after securing their articles, paid for them at the door as they went out. SYDNEY VERY AMERICAN. Mr Ogilvie noticed little unemployment in Australia. The people appeared prosperous, and city life was gay and pleasurable. Wonderful progress was being-made in the cities, and Sydney was showing wonderful advancement. The money was there and it was being spent. The underground railway and the huge bridge now being constructed across the harbour would impove the city greatly, and would also result in a change in property values. Sydney was very American, and Yankee methods were very evident in business. THE REMEDY. “What is the remedy for the present position of Australian business? Is it an alteration in labour conditions?” Mr Ogilvie was asked. “No. The remedy lies in an increase in output,” was the reply. “At present the imports are considerably in excess of the exports. A good season should leave Australian trade and commerce in a much more stable position than at present. Australia is a country that can make extraordinary recoveries, and is capable of far greater progress than is New Zealand. But at present New Zealand trade is in a much more stable position than is Australian trade.” While in Sydney Mr Ogilvie was impressed by the comprehensive arrangements and the public enthusiasm for the Eucharistic Congress. He was also struck with the magnificent buildings in the course of erection in Sydney and Melbourne. Many were costing more than half a million pounds, and besides being of imposing appearance were or architectural beauty.