The Auckland Star. WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun MONDAY, NOVEMBER 28, 1932. HELPING THE FARMER.

Auckland Star, Volume LXIII, Issue 282, 28 November 1932, Page 6

The Auckland Star. WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun

MONDAY, NOVEMBER 28, 1932. HELPING THE FARMER.

For the cause that lacks assistance, For the wrong that needs resistance, For the future in the distance, And the good that tee can do.

An important feature of the new bank proposals to assist the farmer is the suggestion, that the Government should consider paying all farmers' rates to local bodies this year and waive its claim to land tax. What financial relief would result is difficult to estimate, but it is clear that the rate revenue has been falling heavily in the past two years, and land tax has fallen still more. In 1931 the rates of counties showed a drop from almost £2,000,000 to £1,665,200, and this accounted almost wholly for the reduction in yield of all local body rates in that year. Land-tax revenue fell at the same time from over £1,500,000 to £1,145,000, and this year's Budget statement showed that taxation on land produced only £542,000. Moreover, from the low figure reached, the Government anticipated a further drop in the present year to £515,000, a figure which was admittedly uncertain and based on no sound estimate of the ability of landowners to pay. To determine the value of the concession proposed it is necessary to know how much of the land tax, and also of the county rates, is paid by farmers, and it must be remembered also that the rate revenue of borough councils and other local bodies is contributed to some extent by farmers. Further, there are land tax exemptions to be considered —where land is mortgaged there is an exemption of £7500 on the unimproved value—and this means that relief given by the bank's proposal would help mainly the large landowner.

j There is nothing in the proposal to waive land tax which will appfil to the dairy farmer labouring under a heavy mortgage. Nor would relief from rates cause him jubilation when it is impossible for him to pay. The proposal i will $iake its strongest appeal to the local authorities. Their experience in trying to collect revenue is unenviable, and they have to rely much on the assistance of the banks. ,If they are helped, the banks in ..turn will be helped, but the farmer who is most in need gets no direct benefit. Even in cases where the remission of rates would be some help there still remains in the background the great major problem, that the return from farming land is not enough to cover costs. From this it appears that a subsidy on production would help far more than relief from taxation in the form proposed, but care must be taken to see that either measure does not support a fictitious level of land values.

DANISH ON TOP. The state of the butter market in England may bring a smile to the face of the Danish farmer. Despite the 15/ duty, despite all the Dominions' advertising and appeals to Empire sentiment, Danish butter is selling in England to-day at from fourpence to sixpence higher than New Zealand and Australian. It is explained that there is a special reason for this in that the state of the European markets has shortened Danish supply. This, however, could not affect the English demand materially if Danish butter were not popular in England, and it is just this popularity to-day that is so remarkable. Attention is drawn in a cable message to-day to the consumption of Dftnish in the North of England. The great industrial centres of Yorkshire and' Lancashire are feeling the pinch of unemployment acutely, yet in these places Danish at 1/4 or 1/6 a pound is preferred to Dominion at a shilling. This, however, is to be explained more by habit than by studied choice. The Danes have for a long while exploited the great markets of the North of England, but until lately the Dominions have been content to sell in London. The present difference between prices is a striking proof of the value of market cultivation and the deep-rootedness of habit. It, shows that the Dominions cannot be content with London sales, but must redouble their efforts to obtain the custom of the great Communities in the Midlands and the North.

THE IRISH FREE STATE. Proof that the Irish Free State enjoys a large measure of political freedom is supplied by Mr. de Valera himself,. for tne King has agreed to the appointment as GovernorGeneral of a man who is so much of a separatist that he is opposed to the Treaty. His Majesty, of course, was not expected to do anything else; he must take the advice of his Dominion Ministers. The appointment is interesting from more than onejjjpoint of view.. It is fresh proof that in the Free State politics are 'a career open to the talents. Michael Collins was a post office clerk, and Mr. Buckley, like Mr. Cosgrave, has- been .a shopkeeper. The appointment must be considered a political one, and it is in this respect that ~it is. open to criticism.. It is true that if _ Irishmen are to be selected as representatives of the > Crown, it will be very difficult, if not impossible; tp find one that has'.not been mixed up in .party politics. Mr.' Tim Healy, ' the first GovernorGeneral was a veteran of the Nationalist Party. ' Unfortunately, > the attitude ' of the de Valera Government to Mr. McNeill was-such a,s to show that party politics could be thrust most rudely under the very .nose of, the Governor-General. Mr.. Buckley is respected as a man, but be is too much of an extremist to command general confidence in an office that calls for absolute impartiality. T,he objection to such an appointment is that which has been raised in Australia —that such a man is almost certain to have had local party connections, and therefore, even if he is the soul of impartiality, he will not be considered to be unbiased by the public. In Ireland there is this special consideration, that in the interests of peace and unity it is particularly important that the King's representative shall, be moderate in politics and a peacemaker by disposition. It does not look as if Mr. Buckley would fulfil these requirements.