IN THE PUBLIC MIND.

Auckland Star, Volume LXIII, Issue 253, 25 October 1932, Page 6

IN THE PUBLIC MIND.

FISCAL POLICY,

NEW ZEALAND AND DENMARK. (To the Editor.) In a recent issue a correspondent quoted Denmark as a wonderful example for New Zealand to copy. The inference was clear that if the Dominion adopted Dutch methods we could build up as Denmark has done hutre industries in the production of pork, bacon, eggs, poultry, etc. To those who have studied the position this is " double-Dutch." The argument that the building of an export trade in these products would mean the absorption of a large number of the unemployed may appear compelling to those who are not properly informed of the position, especially when it is stated that, this is contingent on the removal of the present sliding scale of duties on wheat and flour; .but what do w» find on examining the hard facts of the case '! Denmark is within a few hours of the entire British market and next door to the great Continental markets, while New Zealand is 13,000 miles distant with heavy freight charges intervening, making competition in certain lines impossible. We can certainly compete in batter and cheese because we have ample feed growing alongside the cows' mouths and because our season arrives when theirs is over. The principal wheat-growing countries of Europe have a much higher protective wheat tariff than New Zealand, and to increase it has been the tendency of recent years. Canadian farmers are petitioning for a eimilar policy, and the United States Federal Government has given assistance to its wheat-growers to the tune of millions o£ dollars. Australia is protecting its wheat-growers to the extent of 4Ad a bushel. Surely it is humorous to hear arguments from people who have evidently never studied the subject condemning the Government for one of its few statesmanlike actions for keeping to the sliding scale of duties on wheat and flour. They in no way press heavily on the poultry or pig farmer or stock producer. New Zealand's consumption of bran and pollard—the offal from our flour mills—is approximately 70,000 tons per annum, and what would be the position of the pig and poultry industry if these necessary stock foods were unavailable, which would be the case if wheat-growing ceased in New Zealand owing to the abolition of protection? Flour importations would be the obvious corollary. The exportable surplus of bran and flour from the Commonwealth is only ten thousand tons per annunvirhile there is no surplus for export from Canada or the United States. It is in the national interest that the present moderate duties should remain in order to retain a key industry with a value of three million pounds to the Dominion and employing directly and indirectly thousands of hands who would find themselves a charge on the unemployment fund if wheat-growing ceased in the Dominion. BEANSTALK.