PLIGHT OF DAIRY INDUSTRY

Press, Volume LXX, Issue 21090, 15 February 1934, Page 10

PLIGHT OF DAIRY INDUSTRY

- ---♦ Minister's Opinion SUGGESTED REVIEW OF OTTAWA AGREEMENT (TRESS V-iSOU.VMON T r.LCIi EAM .1 r TNVERCARGILL, February 14. ' A significant expression of opinion regarding the Ottawa agreement was conveyed by the Hon. R. Masters (Minister .for Industries and Commerce)' in an address at a complimentary luncheon tendered lo him by the Chamber of Commerce to-day. "The present economic condition of the dairying industry of this Dominion is such that it calls for the most serious consideration," he remarked. "There can be no gainsaying the fact that, in view of the tremendous increase which is taking place in the world production of produce, and the policy of nationalism being adopted by Hie various producing nations, it is the responsibility not only of the Government, but also of the leaders in the industry itself seriously to look into the luture. "While it is true that, the Ottawa Agreement has still 18 months to lun, the end must come, and it v.ould appear that New Zealand might well have a review of the agreement with the object of seeing what may be done for the future. I'* the dairying industry we have no alternative of any great importance to Great Britain as a market for our produce. Changed Conditions

"Since the signing of the Ottawa agreement the whole international outlook, in so far as our products are concerned, lias changed," the Minister continued. "In addition to that the policy of Great. Britain with regard to agricultural production generally has also changed. The alternative so far suggested is that of a quota on Dominion produce, but the question arises whether there are not other alternatives, and whether serious consideration should not be given to placing a substantial auota on foi-eign produce in the ' first place."

IMMEDIATE ACTION DESIRED LOW PRICES AND BURDEN OF INTEREST FARMERS' UNION AiKS FOR ROYAL COMMISSION ITHE TRUSS Special Service! WELLINGTON, February 14. "That the perilous position of the dairy farmers demands immediate action being taken to obtain relief from the heavy burden of interest rates and overhead costs generally," was a remit from the North Taranaki branch of the New Zealand Farmers' Union discussed to-day at a meeting of the Dominion executive, which decided to approach the Government at once and urge the setting up of a Royal Commission. Moving the remit as a resolution, MrH. E. Blydc <North Taranaki) said inat the dairymen were in an impisiiblc position, and in the interests of the nation some relief should be given them. He felt that the union should co-operate with the Government in evolving some sort of relief .'.chime. The position was drastic and dkastroiis. lie could say without fear of contradiction that 50 per cent, of the dairy farmers in New Zealand were insolvent.

Mr J. D. Hall (North Canterbury) supported the resolution. He did not think anything should be done to hinder the working of the Mortgage Adjustment Commissions. Investigating Whole. Field The president, Mr VV. J. Poison. M.P.. Said that he had come to the conclusion that the time had arrived for the Government to set up a commission of practical men to go into the whole; problem of the dairying Industry. The position of the dairy farmers was one that, concerned the entire future of an industry, the outlook .for which was not particularly happy. A national plan was wanted, and the only way he cculcl see of evolving one was by means of a Royal Commission to examine every aspect. He moved as an amendment to Mr Blyde's motion Ihat the Government should be urged to set up such a commission. Mr F. Waitc (Otago> said that if prices stayed where they were he c!id not think the majority of dairy farmers could pay any interest at all. The methods of the Mortgage Adjustment Commissions were the only practical methods of affording relief at the present time. Another way was first to help the farmer to increase h ; s income with side lines, and also to fix the price of butter in New Zealand on a payable level. Help of Exchange Ka.tc Mr N. Campbell (Palmerston North) said that had it not been for the rise in the exchange rate the dairy farmers, who were receiving 6d per lb for butter-fat, would be receiving about 4id. The exchange rise had saved them from complete disaster. He was satisfied that on the Government valuations, the average dairy farmer could not make his farm pay, and live under reasonable conditions, unless he received at least Is per lb for butter-fat. Mr H. Scifcrt (Palmerston North) said that the Farmers' Union could do useful work in educating the public. Too many people had the idea that farming could be made to pay j with prices at any level. Mr K. J. Holyoake, M.P. (Nelson) : said that the danger was that nothing would be done until the next session of Parliament. A Royal Coinmission should be set up in the meantime.

A voice: It should be done by order-in-council.

The president's amendment was earned, Mr Blyde withdrawing his resolution. Tt was decided to approach the Government at once, and arrangements were made for a depumi°n+ %x mz £ the Prim « Minister nV«° n^ G u. W ' Forbes) and Mmbc;o of the Cabinet to-morrow morn-