A FINE PAPER

Waikato Independent, Volume XXX, Issue 2316, 27 March 1930, Page 5

A FINE PAPER

"THE CROWN IN BUSINESS." TOO MANY PRIVILEGES. At the quarterly meeting of the local Chamber of Commerce last evening a paper of unique characteristics, but one outstanding in its wealth of thought and educational value, was read to the meeting by Mr E. B. Kemsley. The paper was entitled "The Crown in Business," and was written by Mr Ralph L. Ziman, of Auckland.

The article opened by stating that the subject can be considered from several points of view. There is the individual point of view—that of the trader who considers that a State Department is competing on an unfair footing with him; then there is the political question as to whether State trading is desirable or not; and lastly there is the constitutional viewpoint, embracing consideration of the problem whether State trading enterprises are at present carried on under conditions in the best interests of the nation. The Crown and its Functions.

With a wealth of historical detail the writer dealt with the origin of "flie Crown," and the constitutional position of a very versatile entity sometimes called "His Majesty." He referred to the fact that in the earlier periods of English history after the Norman conquest, the term "the Crown" indicated the State in person of the King himself exercising the functions of . Government. In the course of historical development, however, the actual power was transferred to Parliament and the Cabinet, the expression, "the Crown," or "His Majesty," still meaning the State in its corporate capacity. The writer went on to pay a tribute to the broadmindedness of our present King in his policy to devote his whole energies to promoting the happiness and welfare of his people, rather than impose his own ideas and wishes.

The paper dealt very fully with the functions of the Crown and its special rights, the writer contrasting the position of the State as trader as compared with private enterprise. The writer pointed out that in regard to the primary functions of the State, such as war and the administration of justice, it appeared clear that the prerogative rights of the Crown were reasonably necessary, but stated that very different considerations applied to the trading activities of the State. He stressed the fact that compared with tha Crown private enterprise was heavily handicapped that the Crown was exempted from the operation of many of the statutes. The Act embodying this principle, said the writer, provides that no provision in any Act shall in any manner* affect the rights of His Majesty, unless expressly stated that His Majesty shall be bound thereby. Examples of exemptions were quoted. The paper further pointed out that the Crown was free of many of the enactments of great commercial importance, and went on to refer at length of the privileges of the Crown as a litigant. . Detrimental to the Nation.

It was pointed out that apart altogether from the hardships entailed by the privileges enjoyed by State Trading Departments, the existence'of such privileges was detrimental to the nation as a whole from two points of view: Firstly by reason of their obvious injustice and the rankling sense of dissatisfaction which they cause; they tend to undermine that traditional respect for and obedience to the law; secondly, they tend to undermine the authority of the courts. In the Dominion, the Supreme Court is an institution which enjoys universal respect and is trusted by the people; and, said the writer, it is clearly a serious matter, if the judges of that court are forced by the law into the position of giving judgments which are obviously unjust, or if judgments of that court can be flouted by the executive. The Trading Departments. The State Trading Departments have by legislation acquired enormous privileges, but how asks the writer. He replies, not by direct grant so that Parliament realised what it was doing, but by the simple and ingenious indirect method of establishing trading activities in the name of the Crown. The present unsatisfactory position of State versus private trading appeared to have arisen through failure on the part of the Legislature, and the public, over a long period of years, to give due consideration to the constitutional and legal effects of legislation. Suggested General Principles.

In summing up regarding the question of State trading, and in offering some general principles, the writer indicated that the paper was not intended to advocate or oppose the establishing of State shipping services or a State Bank or other State trading activity. The three principles, compliance with which appears necessary to put the

matter on a proper footing, arc as follows:—(1) That the State trading activity bo carried on under conditions Avhich give it no unfair advantage in law over private traders in the same line. (2) That State trading activity be so carried on that its results are capable of accurate comparison with those of private enterprise. (3) That the State trading activity be carried on in such form as not to work any hardship on individuals having no association with it. The suggestions were offered a,s germs of ideas whereby the trading activities of the State might be placed on a more satisfactory footing in relation to other traders; and also promote the constitutional stability of the Dominion as a whole, and the contentment of its people. At the conclusion of the reading keen appreciation of the paper was expressed, while Mr Kemsley was thanked and congratulated on the excellent manner in which he had read the article.