The Bay of Plenty Times WEDNESDAY, OCTOBER 9, 1946. CONSUMER SUBSIDIES CAUSE ANXIETY

Bay of Plenty Times, Volume LXXV, Issue 14185, 9 October 1946, Page 2

The Bay of Plenty Times WEDNESDAY, OCTOBER 9, 1946. CONSUMER SUBSIDIES CAUSE ANXIETY

In addition to the worst summer for nearly-seventy years, the British farmers and the nation they are striving to keep well stocked with food arc facing- many problems. One of ..the difficulties causing uneasiness.in the agricultural industry is the further rise in food subsidies,* accompanied by the implication that the producer can carry on only with Government help. When the increased prices for farm produce were announced both the Government and the representatives of the farmers ma'de it quite- clear that they were made necessary by the declining trend in the producers' returns. It is apparent from the remarks of Mr James Turner, president of the National Farmers' Union, however, that the system of consumer subsidies, resulting in artificial prices for foodstuffs, is being viewed with considerable apprehension and distrust.

Described as the most important pronouncement ever made by the Farmers-' Union on major issues facing the country and the industry, Mr Turner's statement, published in the journal The Farmer and Stock-Breeder, warns the nation that the era is over when food can be sold under its cost of production. Reference was made to "a combination of facts more serious than the country seemed to realise"—facts concerning food subsidies to the consumer, farm wages and the deplorable state of rural housing. Altogether it would seem that,- if the consumer, who benefits most from the farmer's skill and the taxpayer's pocket, has illusions about the vicious effect of artificial support, the farmers' leaders have none—hence the solemn warning of the threat both to the nation and to agriculture. No doubt it is hoped that an impression will be made upon a public which as a general rule is unwilling to bother its head about economics as long as its own wage packet is intact, With variations, Britain's experience is also New Zealand's. Indeed, the British Farmers' Union leaders appear to realise how closely their farming industry is directly or indirectly related to the agriculture of countries overseas. It is appreciated that, while the nation must be fed, there should be a growing 'and practical awareness of the fact that its ability to feed itself at the expense of the agricultural producer and worker, both at Home and abroad, is disappearing. The illusion of cheap food has been maintained by Government subsidies representing nearly £323,000,000, if the £15,500,000, which the recent increases will cost, are included. Of this total, £158,000,000 goes on home-produced commodities, and the remainder on imported articles. How long is the prop of prices to be maintained artificially for the purpose of hiding what is the real cost of food production? This is a question that it exercising the minds of farmers in many parts of the Empire. The British farmer is asking what will happen if and when the prop of over £320,000,000 is taken away. With so many countries in the world facing famine, it is obvious that the moment for setting aside these subsidies has not yet arrived. But there can be no doubt that Mr Turner has been justified in drawing attention to the perplexities lying ahead and in trying to persuade the Government to organise for the establishment of a fundamental long-term policy embracing all the salient points of normal stability.