The Wanganui Chronicle. TUESDAY, JULY 26, 1949 MR. CHURCHILL’S ATTACK

Wanganui Chronicle, 26 July 1949, Page 4

The Wanganui Chronicle. TUESDAY, JULY 26, 1949 MR. CHURCHILL’S ATTACK

IVIK. CHURCHILL’S attack on Mr. Attlee's administration is not only in character with the man, it being aggressive and clearsighted; it is also justified. In party strife it is too often considered by those who do not pay attention to what is happening, that what takes place is no more than a war between the ins and the outs. When the parties were prompted by the same national and social aspirations this was to a considerable degree true. The programme of each party was probably designed to assist one section or other of the community, but it was held within bounds in each case by the fact that taxation is unpopular and that to proceed with a policy which involves heavy taxation would soon meet with disapproval from the electorate. While the general conception of Liberalism was to maintain conditions that were free so to give to each individual full opportunity' to promote himself and his interests and the general concept of the Conservative Party was to hold fast to that which was good, the contributions of each of these parties shows that they accomplished much that was helpful. While at times there were misconceptions and vagaries due to individual influences the country could be trusted to each party in turn, the one providing that which was lacking in the other. Today, however, polities do not constitute a game of the ins and outs and those who pretend to think that it does so are merely providing a thin excuse for not taking part in the serious business of the State. There are men who have differing ideas as to how the State should be run. These two groups have opposing philosophies of life and there is no ground for compromise between them. The one believes that ownership is important while the other believes that management is important. One believes that profit represents a loss to the consumer, whereas the other believes that profit represents the evidence of the performance of an acceptable community service in the economic field. The one believes that a State-provided employment with its security is to be preferred to a position in which there is the risk of unemployment, the prospect of individual advancement and a variety of avenues to be exploited by the individual. The one believes that a cast system is inevitable; the other believes that each man is a new creation and there is no saying where any man might make good. The most telling part of Mr. Churchill’s speech was that in which he referred to the function of the trades unions. In a nationalised industry they support the State and lose their function of advocates of the worker. There have been instances enough of this in New Zealand. When the Public Service Association, following the obviously correct line of protecting, particularly, the lower-paid members in its ranks, found itself opposed by the Government, it went to Parliament. That was the natural thing to do, the only place open to representatives to oppose the Government’s legislative policy. But the association found itself fighting a lone battle, the other service organisations preferring to play politics rather than play advocates. The problem of protecting the consumer in the nationalised industry has not yet been solved. To what extent can the public become effective in its demand in New Zealand for a better railway service? It has no chance at all because it has the whole of the Government in position to repel any demand that may be made in that regard. The voice of the Opposition is put down as merely political advocacy. Not that running the railways is an easy task, but it is not made easier by being publicly owned. The railways system is not called upon to justify itself by producing a profit; it is asked to assist a Government to remain popular and the real purpose of the railways is subverted to political considerations. The result is that today in New Zealand a railway system has been built up which cannot be made to pay because of the nature of its layout. Some years ago an attempt was made to get rid of the non-paying lines, but the need for political popularity again arose and more railway construction has been pressed forward where the chance of making outgo meet income is slight indeed.

In the long run the slackness of efficiency due to public ownership eats into the structure like a white ant. Under ordinary conditions this long-run process may be fended off by keeping down competition. The first effect of Socialistic policy is to slow down the progressive movement as a self-protection for the existing nationally-owned industry. Under favourable conditions the gradual deterioration of the industry can be concealed for possibly a long time. People become used to inconveniences! they accept a lower standard of quality and they bring a passive state of mind to bear on the whole subject when it is presented for public discussion. It is in the nature of man to ask for more of others and to hope to maintain the status quo for himself. When everyone is anxious to remain undisturbed by innovations the deterioration process is inevitable. Without effective criticism and a sound basis for comparison, new methods are hardly likely to be tried. But even the maintenance of the existing state of things, however, would be insufficient to ensure a permanent standard of living at a given level because as year succeeds year there are more people to feed, clothe and house. When a nation is faced with a crisis, however, it is hardly the time to engage in rash adventures in nationalisation of industries. It is a policy which should be prosecuted with caution in any case. A step-by-step advance would be desirable. To nationalise a coal mine and, when it was proved that it could be better managed as a State institute, to go on to the next mine ami undertake the management of that, would be the policy of prudent men. To nationalise an industry such as the coal industry or the steel industry, on which the whole fabric of British industry rests, and then to hope for the best, was the policy of rash individuals who saw in the temporary position after the war the opportunity to make such a change in England that it could not be reversed. The effect of nationalisation is to increase the cost of the product of the nationalised. To increase costs for a service within the country may be handicap enough, but the harmful results may be covered up and offset by economies effected elsewhere. But where, in a country like England or New Zealand, which must export or perish, those who take steps to put handicaps in the way of the exporting industries can be denounced as saboteurs of the nation. That is what the Socialists are in New Zealand as well as in the United Kingdom and the denunciation of the greatest man in England is as fully applicable to the Socialists of New Zealand as it is to the Socialists of the United Kingdom.