FARMERS' POLICY

Evening Post, Volume CXXIV, Issue 13, 15 July 1937, Page 10

FARMERS' POLICY

PLANKS IN PLATFORM

SEVERAL DISCUSSED

TAXATION PROBLEMS

The policy of the New Zealand Farmers' Union was discussed at the annual conference of the union today, when a number of platform planks were adopted. Co-operation, taxation, and motor taxation, and road finance were considered, a number of the delegates expressing views on the different aspects of taxation.

The following plank defining the policy on co-operation was adopted without discussion: —

"The Farmers' Union strongly supports the principle of co-operation where it will enable farmers more economically to produce and market their produce., (a) It strongly supports the^ co-operative provision of farm finance; (b) It supports the processing for markets, the marketing of primary products, and the provision of supplies and services by producer controlled co-operative organisations; (c) It denies that where in order to make the co-operative processing for markets and the marketing of farmers' products fully effective in meeting the organised competition of other countries, the Government makes co-operation compulsory, the State has any right to take the control out of the hands of the! farmers." TAXATION PROPOSALS. The following plank on taxation was placed before the conference: —

(1) That direct taxation replace indirect taxation as far as possible;

(2) That all direct taxation be levied on personal income only, and be so graduated that the burden falls most heavily on those best able to bear it;

(3) That all taxation payments be exempt from further taxation;

(4) That taxation through the Customs be for revenue purposes only, and be confined mainly to luxuries; (5) That where assistance and encouragement of local industries is necessary, it be given in the form of subsidies.

Discussing clause five Mr. W. J. ■ Poison 'M.P., said that New Zealand would have to import population or he country would become toe colony nf Taoan or some.other country, inej were propping to assist local industries with subsidies but when a subsidy was ceded in the time of depression money was not available. The farm Ss were asking for relief from tai f£ protection costs, but secondary mdusr°es"vo Ould have to considered and j subsidies did not provide all that was reThe position certainly required consideration, said the president, Mr. W. W Mulholland, but there was no denying that the policy of the Government was increasing costs. The faimers were not opposed to manufacturing industries, but they did not want the secondary industries to be placed in a position that would be detrimental to the primary industries, which were still the main industries of the country. The manufacture-s were asking for increased tariffs, but there must be some intermediate position where both industries could meet. If tne manufacturers were willing to meet the primary producers half-way, tne executive should meet them. Mr. A. E. Robinson (Auckland) said that increasing costs were leading to demands for higher tariffs. It had been said that increased population was needed, but that was largely the fault of the towns. The birth-rate per thousand was much higher in the country than in the cities; and consequently it would not be much ad- J vantage to bring city dwellers from the Old Country whye the rate of increase was even smaller than in New Zealand. The plank was adopted.

PAYMENT FOR ROADS,

The proposed plank on motor taxation and road finance was presented in two clauses: "(1) That the whole cost of road construction and maintenance, including interest and principal charged on roading loans, be borne by users. (2) That heavy traffic licence fees be abolished and the lost revenue be made up from the petrol tax or tyre tax."

Mr. Poison said the Crown had accepted responsibility for special rates in areas where the settlers had defaulted, and clause (1) of the plank proposed transferring those charges from the Crown to the users of petrol. There were several counties where the Crown had accepted responsibility, and if the petrol users had to pay it would cost them £500,000.

The object of the matter under discussion, said Mr. R. H.. Feisst (Auckland), had a bearing on the whole incidence of taxation. If the roads were to be maintained by the users, roads constructed by loan money should be paid for along with the rest.

Were those in favour of the clause in favour of the petrol taxation being spent where it was raised, asked Mr. A. R. Johnston (Southland). A delegate: Merely; a detail. Mr. Johnston: It is not merely a detail. Unless we have that assurance the Southland delegates will oppose this. Another delegate said the farmers used th<! roads for driving stock, and they should pay for that privilege. The clause was adopted. The second clause was opposed by Mr. Feisst on the grounds that heavy traffic did a great deal of damage to the roads. Mr. Poison said the local bodies had lull control over heavy traffic lorries. Several other delegates also opposed the clause, and it was rejected on the voices. Mr. K. J. Holyoake, M.P. (Nelson) moved:—"That the Farmers' Union protests strongly against farmers' trucks being subject to the transport licensing system, if operated to carry their own produce only without reward."

Mr. Mulholland said that the Transport Department was considering tightening up transport control, and he believed the licensing of all trucks migh'. bs undertaken. There'uvas power in the statute to do that, and he had been told on good aulhority that the Department might use it, and, in some cases, very drastically. There was every reason for the remit, if, indeed, it was wide enough.

Mr. H. O. Mellsop (Auckland) suggested that the motion should be altered to:—"That the Farmers' Union protests against any interference with the right of private truck owners to carry their own goods."

Mr. Holyoake agreed to accept this alteration, and it was adopted.

A remit from Auckland, affirming the principle that the administration of funds for roading purposes should remain under the control o£ local representative bodies was adopted.

A remit from North Canterbury asking for the abolition of heavy traffic fees on fanners' trucks was carried.

The Hon. W. E. Barnard, Speaker of the House of .Representatives, arrived from Napier today. He expects to return on. Saturday.