PROPOSALS MADE,

Auckland Star, Volume LXV, Issue 247, 18 October 1934, Page 10

PROPOSALS MADE,

PROBLEMS ANALYSED. REORGANISED DAIRY BOARD. OVERSEAS TRADE. An exhaustive analysis of the problems of rural finance was made by the commission which investigated various avenues of credit available to the farming community, both long and short term, and probed the Government's legislation designed to afford financial refief. 'Suggestions are made for amendments to the Mortgagors and Tenants' Relief Acts and stress is laid on tlie necessity for the "unfreezing" of mortgage finance. The ability of farmers to meet their debt commitments is examined by the report, which disckjses that at least 50 per cent of New Zealand dairy formers are in a varying degree unable to meet their financial obligations. . The rate of 5 per cent is held to be excessive interest for farm securities. In formulating its plan for financial relief the commission rejected proposals for all forms of gifts and subsidies, including guaranteed prices for butterfat. For the sound reorganisation of rural finance the establishment of a rural mortgage corporation is proposed, to provide for long term mortgage credit at lowest current interest rates, and on easy repayment terms under a system of redeemable State-guaranteed bonds, which would be subject to triennial readjustment of interest. Recommendations for the reconstruction of the Dairy Board include proposals that the personnel should comprise eight members, of whom four are to be Government nominees; that the number of wards be reduced to four; and that an alteration be made in the electoral system. The commission recommends also the establishment of a council of trade and production, to consist of three members, who are to act as an advisory body to the Government concerning control ol all dairy produce. The development of the dairy industry in its relation to international trade is surveyed, and particular attention is [laid to the marketing of produce in the United Kingdom. Proposed quantitative restrictions arising out of the new agricultural policy in Great Britain are examined, and the initiative for future discussions with the Imperial authorities for the safeguarding of the marketing of New Zealand's produce is discussed. The establishment of new markets outside the United Kingdom is referred to, and without making specific recommendations the commission suggested that inquiries should be made in various countries as to the possibilities of New Zealand products being acceptable there. It is proposed that the Dairy Research Institute should be made an autonomous body, with specific powers.