A WARNING.

Ashburton Guardian, Volume 58, Issue 40, 26 November 1937, Page 5

A WARNING.

UNECONOMIC LAND UNITS. MENTION OF DAIRYMEN’S ( GRIEVANCE. (Per Press Association.) * WELLINGTON, November 25. Objection to the graduated land tax was expressed by Mr T. D. Burnett ’ during the committee stages of the 5 Finance Bill in the House of Representatives early this morning. “I want to warn the Government as to the probable results of the operation of the tax,” Mr Burnett said. “The South Island is plastered with tragic failures in land settlement. Estates which were well and efficiently managed as single properties degenerated into uneconomic holdings as soon as they were cut up for closer settlement. The operation of the graduated land tax has been one of the chief factors in bringing about this unfortunate state of affairs. The result has been a - wellnigh insoluble problem for Governments, and mortgagors _ have lost the best years of their lives in attempting to make a success of uneconomic land units. In addition, mortgagees have lost huge sums of money and all State lending departments have written off large sums in connection with these subdivided areas.” “I warn the Government that the agricultural and industrial position is changing rapidly, and that there are signs already that only large-scale farming units can hope to save the wheat industry. I also appeal to the Government in all friendliness to study well the probable repercussions from the incidence of graduated land taxation. Dissatisfied Daii*y Suppliers. Dissatisfaction with the new system of marketing dairy produce in South Canterbury was expressed by Air Burnett. Dissatisfaction had been brought about largely by the new system of zoning and rationalising, he said. “I noticed that the member for Dunedin West said that all the dairy farmers of the Dominion are well satisfied with the marketing methods. I should like to take him to South Canterbury,” said Air Burnett, “and get him to make contact with hundreds of dissatisfied dairy farmers as a- result of the sale of the Clandcboye Dairy Factory to the Ashburton Dairy Company. Some 699 dairy farmers are vitally concerned. They received notice of the new arrangements last June, and as a result those men, .who are mostly nonshareholders, are required to supply the Ashburton Company fo.r the next four years. On top of that they were informed last month that unless they took shares as a qualification they would not be able to participate in the final distribution of profits. The Prime Alinister would be well advised if he got- the Alinister, of Agriculture to go down and investigate the position in South Canterbury, because as a result of this rationalising and zoning system there are hundreds of dairy farmers, mostly small men, who are gravely dissatisfied with the present position. There is almost an incipient mutiny developing.”