FARM TRACTORS FROM U.S.

Press, Volume LXXXIV, Issue 25546, 14 July 1948, Page 4

FARM TRACTORS FROM U.S.

FEDERATED FARMERS’ PROPOSAL PLAN FOR TEN MILLION DOLLARS CREDIT Federated Farmers has in train arrangements with the Bank of America for two credits, each of 5.000,000 dollars, one credit to be available for the 1948-49 season, and one for the 1949-50 season, according to a resume of dol-lar-tractor proposals sent to each member of Parliament by Mr W. N. Perry Dominion president of Federated Farmers. Each credit would enable about 2500 farm tractors—both wheel and tractor type which are not available from a sterling source—and additional supplies of farm equipment of types and sizes which were not available from sterling areas, to be bought A national survey, although only half completed, of farm machinery available, indicated that there was an urgent need for equipment, said Mi* Perry’s statement. The supply position . was’deteriorating from day to day, and as there was great urgency for a favourable decision to be given immediately, the Federated Farmers had arranged for a question to be asked in the House of Representatives so that the matter could be discussed. The survey taken showed that to date 1450 one, three, and four-plough wheel tractors. 190 two-plough crawler tractors, 700 three-plough crawler tractors, 450 four-plough crawler tractors. 495 pickup hay balers, 1362 side delivery rakes and tedders. 1948 power mowers for tractors, and plain and barbed wire were required. All two-plough tractors had been omitted as they could be obtained from England. Sale of Butter and Lamb It was proposed. Mr Perry said, that each credit would be repaid by four equal annual instalments, plus interest. with a rest of one year, from the proceeds of the sale of 1000 tons of butter and 1000 tons of lamb each year. The Bank of America would require the New Zealand Dairy Products Marketing Commission and the Meat Board each to lodge New Zealand Government securities with its agents in New Zealand, as collateral securfty, and would want a guarantee or undertaking from the New Zealand Government that, in the event of any obstacle preventing the shipment and/or .sale of this nroduce in the United States market, dollars would be provided for the liquidation of the advance from the Imperial dollar pool. It was believed that 10.060,000 dollars worth of American equinment would be almost adequate for the New Zealand farmers’ urgent requirements during the two periods, but was insufii- j cient to supply spare parts for existing equipment already in operation in this country. Payment by Extra Production Federated Farmers had established a formula by which any tractor or other farm machine bpught under the credit would be sold to a farmer. For a wheel tractor a farmer was to give an undertaking that during the next five-year period he would continue to maintain his present production, if his farm was fully developed, or if only partly developed, he would increase his present production, by at least 20001 b butter-fat a year, 200 lambs, or 20 acres of wheat. It would taka 10001 b butter-fat, 100 lambs, or the equivalent of 10 acres of wheat to pay for annual instalments on each of the tractors, leaving an equivalent amount of extra production to be shipped to Britain. “It is necessary for the Government immediately to instruct Messrs Ashwin, Marshall and Grigg, who are. negotiating a bulk sale agreement with Great Britain, to arrange for the reservation under the contracts for butter and meat of 1000 tons of each product for shipment each year for each credit to America for the liquidation of the advance for the purchase this equipment,” said Mr Perry. ►. ! The proposals had been carefully examined and unreservedly endorsed by the agriculture, meat and wool, and dairy sections of Federated Fanners, the Dofninion Council of Federated Farmers, the Meat Board, the Dairy Industry Commission, the National Dairy Association Conferences, and also by the Auckland and Waikato provincial conferences of Federated Farmers. The editors of five mang newspapers in the North Island, alii® discussed the proposals and had been unable to fault them. A copy of the proposals had been handed to Mr Nash on June 11 by Federated Farmers, and he was asked for a prompt decision. He was again written to for a decision, but without' result. Alternative to Proposals The alternative to the proposals was an undertaking by the Government, to make available immediately to farm i equipment importers 5,000.000 dollars, to enable importers to notify their prinicpals of requirements. Failure on the part of importers to take that action would result in New Zealand being shut out from her rightful share of the 1948-49 manufacturing year’s production. If that happened New Zealand farmers would not be able to maintain production. “It is our considered opinion that the provision of this 5.000.000 dollars worth of equinment will give the Aid. to Britain campaign a substantial lift in overall production,” Mr Perry said in conclusion. “Failure by the Government to accept this voluntary offer on the part of farmers to work harder to produce extra produce to pay for these tools of their trade will make any further appeals for greater production appear completely insincere/ We would point out that we as farmer!| want to purchase certain equipment to increase our production and to maintain and improve our standard of living, and are prepared to do more work to bring about this result.”