IMPORTANT ISSUES

Evening Post, Volume CXVII, Issue 103, 3 May 1934, Page 12

IMPORTANT ISSUES

FARMERS' UNION CASE

FUTURE OF INDUSTRY

A unanimous decision to prepare a case for submission to the Boyal Commission -which is to sit shortly to in- v vestigate the position7of the Dominion's dairying industry was reached by the Dominion executive of the Farmers' Union today. It was suggested by the president (Mr. "W. J. Poison, M.P.) that the evidence should deal with the questions of giving immediate assistance to needy dairy farmers, the development of markets overseas, and the further development of the farming industry in New Zealand, either by diversification of operations or.some- other plan.Mr. Poison said that the Eoyal Commission was asking for evidence and he thought it was essential to compile all tho evidence available and tender it on behalf of the union. The future of the industry would to a great extent depend upon the Commission's report. The Farmers' Union and the dairying industry had asked for an inquiry and the Government had granted it, and the interested organisations should express their opinions very definitely. Mr. W. W. Mulholland said that any committee that was set up should be sufficiently large to comprise persons having experience both of phases of the industry generally and of district problems. He thought the evidence would best be tendered by one individual, but that men with special knowledge of more or less technical matters should attend before the Commission for crossexamination. The engagement of legal assistance to superintend the preparation of the case would be worth the expense. LINES OP INQUIRY. Mr. Poison said that now that a Commission had been set up to investigate the position impartially it was not necessary to express the strong views one had been expressing hitherto, but he wished to point out that there were several aspects of the question which the inquiry would cover. An enormous mass of evidence could be made available. There was the question of the external expansion of the industry, and what was to be done if New Zealand farmers were faced with restriction in the Home market through a desire to increase the production of the British farmers. Oo the question of where the Dominion should turn for new markets the union had a great deal of evidence. Information collected from other organisations regarding the consumption of dairy produce in the East showed that in all the countries from Japan to India the imports of butter totalled only a little over 6000 tons per year, mostly in cans, of which Australia exported the bulk. Consequently there was not an immediate market in those countries. It would be a matter of slow develop-!

ment, and would probably need, heavy subsidising both of shipping and the produce itself. , IMMEDIATE ASSISTANCE. Another important question concerned tho extent to which diversification of farming operations could be carried out if the butter and cheese markets were to be restricted through failure to find customers, Mr. Poison continued. Then there was the question of what was to bo done immediately to assist those dairy farmers who wero virtually faced with bankruptcy because of low prices. He thought it would be difficult to apply a stabilisation plan similar to that now operating in Australia because the exportable quantity of New Zealand's daily produce was so much greater than tho local consumption that it would require at least 7d on the local price to give the producer Id. ASPECTS OP SUBSIDY. , There wero two aspects of the question of a subsidy, said Mr. Poison. In the first place, consideration of subsidies just now. might mean that the British farmers would be entitled to say that heavily-subsidised butter was competing with them on their own market, and considerable prejudice might be created among those at Homo who were at present friendly towards the New Zealand farmers. It was an important aspect, particularly in view of the possibility that someone might yet have to go Home and meet the British dairy farmers, and also perhaps representatives of the British Government to deeidb what should be done. So far as the local aspect was concerned, for a subsidy to be of any. use it would have to be 2d or 3d per pound, and that meant raising money by one process or another. If it was raised by way of loan and the industry had to repay it, it was questionable when repayment could be- made. On the whole, it was doubtful whether a subsidy would achieve the result hoped for, Moreover, it was questionable whether the country could stand a subsidy for that purpose. WORSE THAN A QUOTA? "I don't know whether it has oc^ curred to you," Mr. Poison said, "that in deciding to subsidise the British farmer the British Government has done something which I think will affect us even more prejudicially than a quota would havo done, because that subsidy will immediately encourage a great increase in farm production in the Old Country. It may mean that our market is not only a ..diminishing one, but a vanishing one at Home. I hope I am wrong, but still there is that possibility, and under those circumstances the situation confronting the dairy farmer in New Zealand is a desperately serious one and fully warrants'the action of the Government in setting up the Commission. After all, it is no reflection on the Dairy Board to say that these are matters entirely beyond its control, matters that demand the attention, of the Government." ' ELIMINATION OF WASTE. Mr. C. B.- Mclntosh said that the more he thought about the matter the. more he felt that the Commission should not take any evidence at all. Tho needs' were immediate, and. the Commission should of its-own knowledge be able to set about making an immediate alteration. There were many ways in which the whole position could be taken in hand at once with the object of reorganising the industry and eliminating the waste that was going on. For example, the present method of cream collection was most extravagant and was not conducive to | the cream arriving at tho factory in the best order. There was no inspection taking place so far as farms were concerned. No doubt most of the cream was well handled but there was a percentage that was not, and in most cases that cream was mixed with the good' cream at the factory. It was impossible to make good butter in such cases. FACTORY, MANAGEMENT. . An overhaul of factory management was also necessary, Mr. Mclntosh considered. No manager could produce good butter unless he had, authority to reject cream as not being up' to standard. The method of manufacture might also be improved. Tho vacuum process of churning was likely to have a revolutionary effect on shipments. - .'--•:.. "Time is the essence of the contract because in a matter of weeks the new dairying season will be opening, and these reforms should be put in hand immediately," said Mr. Mclntosh. "Prom what I can gather of the calibre of the members of the Commission and their personal knowledge of the industry, I feel they will bring down recommendations pretty much the same as if they acted without hearing evidence. They should have the right to call in experts on any technical questions, but otherwise I think the whole issue will be fogged." / Mr. J. A. McLeavey:. We want to impress upon the Commission the necessity of helping the farmers straightaway. FARM FINANCES. The chairman said he was aware that since the order of reference was published it had been elaborated to give the Commission full power to consider every phase of the question of farm finances, mortgages, etc. Apparently there had been a good deal of misconception on the matter which had led to an agitation to have included in the order of reference what was already provided for. PRODUCTION COSTS. In moving that a committee be set up to prepare the union's case, Mr. H. E. Blyde said it would be an excellent opportunity to emphasise the necessity of lowering farm production costs. Mr. H. O. Mellsop said that strong evidence was available as to tho feeling of a very largo section of the British public on the subject of quotas. That evidence should be given to the Commission. The following committee was set up:—Messrs. Poison (chairman), H. O. Mellsop (Auckland), N. Campbell (Dairy Farmers' Union), H. E. Blyde (Taranaki), P. Arnott (Southland), and P. Waite (Southland). Mr. Poison was appointed to present the union's case to the Commission.