GOVERNMENT TRADING.

Waikato Times, Volume 103, Issue 17383, 20 April 1928, Page 4

GOVERNMENT TRADING.

CHAMBER OF COMMERCE.

MR MCLEOD ON THE POSITION. At the annual meeting and dinner of thfe Wellington Chamber of Commerce, the president (Mr M. Bowden) presided over a large attendance, which included the Minister of Industries and Commerce (Hon. A. D. McLeod). In his presidential address, Mr Bowden said that the trade recovery evidenced by the figures relating to the Imports and exports for the year ended December 31, 1927, was reflected in the banking figures at March 31, '1928, which could be regarded as very satisfactory. “Request has recently been made of the banks,” said Mr Bowden, “that they reduce the rates charged for overdraft accommodation, hut I understand that request cannot be acceded to. Reversion to the rates formerly charged and allowed would be welcome, as being admission of the improved financial position of the Dominion. It would restore confidence overnight, and lack of confidence is one of our troubles to-day. On the figures, there is no reason for not now reducing the rates to the former level.

Government Trading. “Attention has been directed from time to time to the growth of trading by Departments of State and of local bodies, many of which operate with direct loss. This places a double burden on taxpayers, as not only must the loss be met out of the general but, by reducing the field of private enterprise, legitimate trading profits are curtailed. The field available for income taxation is thereby reduced, and therefore the scale of rates must remain high. Similarly, exemption from local rates throws additional burden on the general body of ratepayers. It is now generally recognised, the world over, that where trading by Government or local authorities is permitted, 'such departments, in all equity, should be subject to the same liabilities, taxation, conditions, and restrictions as are imposed on the businesses with which they compete.” (Hear, hear.)

Wonderful Trade Recovery, The Minister of Industries and Commerce (Hon. A. D. McLeod) said that he was strongly of opinion, as one horn in New Zealand, and one who had worked in the Dominion, that we had the luck of Living in the finest little country in the Empire. We are a British community to the backbone, and had taken to ourselves the privilege of Britishers, who did not forget to grow. (Laughter.) The trade recovery had been wonderful, and today the country was full of optimism. It was very hard, however, to be optimistic 18 months ago. He thought the Government of the day had had great difficulty in keeping the people of this country up to an optimistic outlook for the future. During the past few months, criticism had been offered in the direction of showing that the progress of the country was not what it should have been. The Minister quoted figures for the ten year period to 191 G, and for the succeeding ten years, to show the development that had taken place in the Dominion. « There had been substantial an#, valuable growth in our secondary industry, he said, and although this year’s trade balance was a wonderful one, he could quite realise that in certain trades the opportunities for improvement had not been great. He had every confidence that we were getting hack to a better basis of liability.

Bank Rate. Mr McLeod said he was as anxious as the traders to see a reduction in the bank rates. The Minister also referred to criticism of the Government, in connection with community trading. Personally he was a strong individualist, and believed that as long as there was open competition the best results could he obtained by individual trading. Community trading was more general in municipalities than with the Government. To bring about a change the atmosphere had to be created. If it was considered that community trading was not conducive to success there were very few opportunities for bringing about a change of policy at the municipal elections. The chairman of the Wellington Harbour Board, Mr J. G. Gobbe, also spoke. .