Farmers Not Insulated

Dominion, Volume 32, Issue 65, 9 December 1938, Page 13

Farmers Not Insulated

Sir, —.1 Jtisteiied to Air. Savage last night broadcasting on export and import licensing by the Government. He said it was part of the insulation plan. The fact is that the Government, by its extravagance, has got into financial difficulties and was forced to resort to something such as it has done. The farmer is not insulated except from getting a fair return for his efforts. The guaranteed price for dairy produce cannot be maintained at above export parity without penalising the sheep-farmer. The sheep-farmer is exposed to great dangers. His prices for meat are well down, export prices of ewes and wethers being about 9/- and 18/-; wool is not at boom prices, but his costs have risen and will continue to rise.

Neither is the dairy-farmer insulated. No farmer can compete with the wages rate of the public works. Farming production must inevitably decrease. Much land is going back and will continue to do so. Dairy production is down very considerably in spite of the guaranteed price. The overseas prices of exports are generally down on last year. This, together with a reduction in quantity, must reduce the national income. 'The Government is wholly unable to insulate the country. Mr. Savage stressed the need for more production. His policy is definitely reducing production: exports are now subject to Government licence. This means that the exporter, who is the farmer, has lost control of his export credits. With export production on the down grade what is going to happen?—l am, etc.. D. SUTHERLAND. Wanganui, December 8.