PROTECTION OF INDUSTRY

Press, Volume C, Issue 29540, 15 June 1961, Page 20

PROTECTION OF INDUSTRY

Farmers’ Attitude “Why are the primary producers opposed to industrial protection?” asked the chairman of the Dominion dairy section of Federated Farmers (Mr R. Woolerton) in his address to the annual section conference to Wellington yesterday. ‘"The most obvious reason is that such a policy forces up our costs. It confers special benefits on a sector of the economy and this prevents the flow of resources into those industries which can contribute the most in real terms,” Mr Woolenton said. “It embarrasses the position of our negotiators when they go abroad and seek new or expanding markets for our products. In total it has the effect of preventing our people from enjoying higher living standards. “If anyone doubts what I say I would refer them to a paper recently presented by the director of the New Zealand Insititute of Economic Research, (Dr. C. A. Blyth). “In this paper Dr. Blyth said that forced manufacturing growth over the past decade—by inflation and protective poTcy— has retarded overall growth. The internal price rises and the protectionist policy have retarded farming growth by reducing funds for farm investment, reducing the profitability of farming, raising farm capital requirements and aggravating the farm labour shortage. "These statements were made by an eminent authority completely independent of any group in our community. I believe they speak for themselves. and they endorse the views which have long been held by the farm organisation,” Mr Woolerton said.