Fanner Urges N.Z. To “Stand On Own Feet”

Press, Volume XCVII, Issue 28606, 7 June 1958, Page 7

Fanner Urges N.Z. To “Stand On Own Feet”

If New Zealand considered that it had political' independence, the country should be prepared to stand on its own feet economically, and not lean on the mother country for guidance and financial support, said Mr J. F. G. Blakely in his presidential address to the annual provincial conference of North Canterbury Federated Farmers yesterday. “As a nation, we have received good prices for our products. That has given good returns for the labour, and probably the highest standards of living in the world,” Mr Blakely said. “The Government, through high taxation, has reaped the benefits of this prosperity, but what do we see today? In the first few months of falling prices, the necessity for a Government going bacß to the motherland seeking a £2om loan at high interest rates to try to balance its economy. “Capital in the first place must come from somebody’s income, and why not from our own?” he said. “The Government should be like any businessman and be prepared to provide capital from the income made over prosperous years.” K As a farming community, New’ Zealand should be prepared to accept the business risks associated with the primary industry, and individuals should be prepared to accept the rises and falls of competitive society, he said. Living Standard

New Zealand’s high standard of living, amenities, services and benefits could be attributed to the prices for the sale of exports, but why was it necessary to protect uneconomic secondary industries with tariffs and import controls? asked Mr Blakely. Some secondary industry was necessary, but it should be allied to the primary industry. “Countries which look to industrial production for the major portion of their income work the clock round in shifts, have their raw materials at their back sloor and have ready/and easily accessible markets fdr their products,” he continued.

If the wool manufacturing industry in New Zealand, which had its raw material on the spot and was operating under import control plus a 25 per cent tariff on

Kingdom imported made-up garments, could not stand on an equal basis with its European fcounterparts, which had to import most of their raw materials and pay freight to and from New Zealand, what chance has any other industry of making a real contribution to the national income?

The fostering of many industries was adding to the inflationary problem, he said. Asian Trade

Because New Zealand had no reciprocal trade agreements with Asian countries, they could not afford to buy New Zealand goods because the door was always closed to their cheaply-manufac-tured goods. The future of the national economy would depend for many years on the products of the soil, but new markets should be fostered and encouraged, he said. The Government would have to look at Government expenditure, which had increased alarmingly in recent years, he said. Possibly it was time, in the era of adjustment, to reconsider works not absolutely essential.

Farmers could help by being more moderate in their demands for new land development and large irrigation schemes requiring large capital expenditure when, as yet, the country now farmed had not been fully developed with the present improved farming methods. A revision of transport licensing laws to allow more flexibility and competition might help to stabilise the economy, Mr Blakely continued. Provision of all-weather loading facilities would result in quicker, better and cheaper handling of primary products at the ports. Abolition of the land tax, which had long past served its purpose and was only an iniquitous tax on one section of the community, should now be effected, and taxation should be kept at a rate that encouraged enterprise and incentive.

Although prices were falling the New Zealand farmer was blessed with a good climate and a fertile soil and could adapt himself td the production of the most favourable products,