SUBSIDIES FOR FARMERS

Press, Volume LXXVII, Issue 23415, 23 August 1941, Page 8

SUBSIDIES FOR FARMERS

MR HAMILTON HAS

DOUBTS

LOWER PRODUCTION NOT WANTED (P.R.) WELLINGTON, August 22. Doubts of the future for fanners, if prices fell, were expressed by the Hon. A. Hamilton (Opposition, Wallace), when the Agricultural Department's estimates were being discussed in the House of Representatives this afternoon. He commented that prices for agricultural products were fairly good, yet subsidies had to be given and the industry was paid the lowest wages in New Zealand.

Agriculture, said Mr Hamilton, was a basic industry, yet it had to be sustained at a time of good prices with subsidies. On top of that, the wages were the lowest paid. The Minister for Agriculture (the Hon. J. G. Barclay): Too low. When the land value was mentioned, Mr Hamilton said that it was a bogy. It was mostly made up from improvement of the land.

Mr Barclay: You don’t find it a bogy when you try to buy it, “Something else is wrong when agriculture has to be sustained by such large subsidies and other subsidies have to be given to keep down the price of bread and sugar,” Mr Hamilton said.

The Minister for Finance (the Hon. W. Nash): Somebody is getting too much somewhere. Who is getting too much?

“Who is getting too little?” replied Mr Hamilton. “With- what confidence can farmers go forward. The Minister has to inspire confidence in the farmers.”

Replying, Mr Barclay said that £759,000 would not be all the subsidy this year on fertilisers. The cost looked likely to be £1.000,000. If the Government had allowed the increased cost of raw fertiliser and materials to be passed on, with all handling costs, the amount would probably have been £1,250,000, instead of £1,000,000. Farmers all over the world were being paid subsidies. It was a new method. Mr Hamilton was one of the best fellows in the world, but he had a conservative mind.

Question to Minister

Asked by Mr W. S. Goosman (Opposition, Waikato), to explain what he meant in his report by saying that it was not possible to suddenly brake agriculture, the Minister said the increases of butter and bacon production were not wanted, but the Government did not want to throw the industry out of gear. It wanted potential production to remain. It did not want to curtail production, but to plan production, such as changing over from butter to cheese.