ECONOMIC POLICY

Ashburton Guardian, Volume 53, Issue 257, 11 August 1933, Page 7

ECONOMIC POLICY

ADVICE TO THE FARMER. IMPROVING HIS POSITION. (Special to the “ Guardian.”) CHRISTCHURCH, This Day. An economic policy for New Zealand agriculture was outlined by Mr G. H. Holford last evening in an address to the Canterbury branch of the Economic Association. He advocated the relegation of marginal lands, the adjustment of farming by concentration on betterclass lands by suitable taxation, the lowering of land values, efficiency in the secondary industries with the lowest possible protection, improyement in the quality of farm produce and an improvement in farming methods, with national and regional farm economic surveys and a better organised and more vigorously implemented educational policy based on these lines. Mr Holford dealt first' with the rapid rate of development of land in the Dominion, largely because of an overdose of credit, with the Government the main offender. To bring in more idle land of low capacity at- present was stupid. The small-farm plan, he maintained, was committing those concerned to economic slavery. Contraction of Land. It seemed that the opposite policy was the one to adopt, concenti ating on low costs of production. This meant the contraction of the land undei occupation. The present policy means a greater expenditure in roads, postal services,' schools and so on, whereas the land did not warrant it. On the other hand there were areas of good land allowed to deteriorate, and no attempt was made to force it into production. 1 On top of excessive credits, advantages were given to the farmers at t e expense of the community. were capitalised into the land. He forecast the writing down of land values and an arrangement with the overseas creditors. The basis of presentday land values was not on its production ; capacity, but on the price it would bring in the mafket. Under that policy all the farmers were propped up artificially, and the question was how long the prop would hold. Now that the time had come to farm in earnest, only relatively a/few men knew how to do it. The policy, then, was one of adjustment. He advocated the amendment of the Mortgagors Relief Act to allow the efficient farmer t0.:,g0 on. The- inefficient farmer would go out in any event. Another plank in the economic policy was the reduction of the mortgage indebtedness both at home and overseas.

Efficiency on the Land. In agriculture there was need for greater efficiency. Everyone had con- , spired to that end because the community had shared in the artificial prosperity. It had been very obvious . that everything else had been trier before considering the efficiency of the farmers. The high ' exchange, lower tariffs and subsidies had been among the methods tried before reducing costs by greater efficiency in production. “Farmers must now ‘ stay put and make their profit out of farming and not land selling,” said Mr Holford. Many questions were discussed at farmers’ conferences, but it was noticeable that the question of efficiency cad not enter into'the discussions Ue farmer was the steward on the land fS the people as a whole. If economic pressure operated all along adjustments would be made unnoticed Although individual farmers suffered farming would still go on. A national suryey of farms was ai other plank in Mr Holford s scheme, to determine the factors leading to success in each district. With that knowledge available the farmers would lie assisted tremendously. At present the fanners acted as individuals. A case m point was the creeping paralysis of fern that was attacking Banks Peninsula, lhou- ■ sands of acres of good land wei e going back and back. “Our Greatest Sin.” “New Zealand is one of the finest countries in the world,” he said; “good soil, an equitable climate, well watered, and capable of a high standard of production. When we get Jown to it we have capitalised our sunshine and our rain as well as our land—that is oui greatest sin.” • . , , Mr G. Lawn said he thought that today there was a growing body of public opinoin moving in the direction of a national policy in regard to land ownership, settlement, purchase and utilisation, and that the general public through a governmental institution should have some say in these matters. The efficiency of the New Zealand farmers w*is shown by their capture of English markets ahead of countries nearer to those markets. ' Mr George Shipley claimed that the efficiency of the farmer in the past few years had increased tremendously. The fanners’ very efficiency had been his downfall. It seemed to him an accepted fact that the benefits to farmers from the Government and science had all been capitalised into the land and lost to the farmer* The same would happen in the future. The ills lay in the system of land ownership. Until that system was studied''and altered there would be a recurrence of periods such as those of the present day.- . Mr W. Macliin, the chairman, said that farm production had increased over the past 20 years at a faster rate than any other industry. “Heaven save ns from more Government interference,” he said. In starting, control boards, the compulsory features of which he hated, he saw the forerunner of what would eventually he the commonplace in New Zealand. The broad lines to be followed would be laid down by the Government, but inside that structure there would be freedom for the individual. It would be a case of more Government cognisance and less Government interference. Might it not be, instead of the community suffering for the farmer, that the prop which the farmer had given to the community had been removed P