The Press THURSDAY, NOVEMBER 24, 1966. Farm Policies

Press, Volume CVI, Issue 31225, 24 November 1966, Page 16

The Press THURSDAY, NOVEMBER 24, 1966. Farm Policies

“ Labour’s agricultural policy is initially aimed at meeting the 4.1 per cent annual increase in pastoral “exports which was recommended by the Agricul“tural Development Conference”, says the Labour Party’s manifesto. This conference was called three years ago by the National Government; and the targets set by the targets committee appointed by the conference have been the guide-lines of official policy ever since. It is gratifying that the Labour Party has adopted these targets as its own, for it suggests that the vital role in the economy of agriculture, and of exports, is appreciated by both the main parties. In passing, it might be mentioned that neither party’s election policy spells out the full implications of accepting the recommendations of the conference—in particular, the diversion of financial and other resources from other sectors of the economy. This criticism is especially true of the Labour Party policy; inflationary “ give-aways ” bear harder on that section of producers selling on overseas markets.

Allowing Labour the best of intentions towards agriculture, one cannot admire its specific promises. As if there were not enough institutions at present lending money and directly financing farm development—such as the State Advances Corporation, the Marginal Lands Board, the Lands and Survey Department, the trading banks, insurance companies, stock and station companies, and individual mortgagees—the Labour Party would set up a Rural Banking and Finance Corporation. The creation of yet another institution would not add one pound to the finance available to farming; it would add thousands of pounds to the industry’s overhead expenses. The National Party promises that the State Advances Corporation which, under the last six years of National rule, has expanded its rural lending threefold, will continue to provide farm development finance. The separate rural division within the corporation, proposed by National, is a more down-to-earth institution than Labour’s suggested institution. The wider powers and extended activities of the Marginal Lands Board in recent years enable this body to deal with propositions beyond the scope of the State Advances Corporation.

Not satisfied with the National Government’s provisions for financing young men on to farms, the Labour Party would provide more low-interest money, offer seven-year leases with the right of renewal or purchase, and generally encourage more young farmers to aspire to home ownership. Many of them would be doomed to disappointment. The inevitable results of Labour’s policies would be to drive up the price of farm land, already too high, to the detriment of farming generally, and to make entry into farming even more expensive than at present. Until the party’s policy-makers really understand farming they will continue to mistake symptoms for causes and to perceive only the superficial problems of farming. Of the party’s 1966 agricultural policy it may be said that “ what is good “ is not new, and what is new is not good ”,