BRIGHTER OUTLOOK

Evening Post, Volume CIV, Issue 22, 26 July 1927, Page 10

BRIGHTER OUTLOOK

INCREASED PRODUCTION

THE PRIMARY INDUSTRIES

ADDRESS BY MR. COATES

The Prime Minister (the Right Hon. J. G. Coates) in an address at the Conference of the New Zealand Farmers' Union to-day, dwelt upon the improved outlook so far as the general economic position is concerned, and especially, he said, was the future brighter as regards our primary products.

The Prime Minister, after thanking the conference for inviting him to be present, said that some of the remarks made by the president (Mr. "W. J. Polson) required some qualification. One was the statement that Mr. Coates was "the man who gets things done." "Now I want to clearly tell you that I never said such a thing at all; others have said it, but I have not. lam there, in my position, to do my duty, and to initiate and complete a policy that was initiated at the last election, and one which I hope to be able to put into complete operation." Mr. Coates said that in the whole of the British Empire there was not a Government that had the representation from the farming community that the present Government of New Zealand had, and he asked the conference to consider that. The party of which he ! was the head was largely composed of farmers and men who depended upon the farming community for their livelihood. He himself was a farmer; he thought in the terms of a farmer, and the difficulties of the primary producer. No one was more anxious than he to arrive at a solution of the problems that faced the primary producers to-day not only in New Zealand, but all over the world. ■ ■ ■ WORLD-WIDE DIFFICULTIES. It was true that in New Zealand the "position was probably unique in one respect —that by far the greatest portion o± our produce came from the primary producer. The president had recently been abroad and had come into touch with -the position in various countries j and, no doubt, he had seen the difficulties which the primary producers were contending with in those countries. For instance, the primary producers in Great : Britain were in much the same position as in New Zealand, and the primary producers in Canada, the United btatrs, and in Denmark were up against most serious problems. It was a worldwide depression or disturbance that affected the primary producers The Prime Minister said he wanted tlie conference or representatives of the conference to consider various matters with the Ministers of the Crown—to meet and discuss certain questions, and then probably later consider in detail the various proposals which were now before the conference. The Ministers or iinance, Lands, Agriculture, Education, Labour, and he himself would be pleased if they could have an opportunity of discussing with the conference the remits before them Looking at the work done last year at tho conference, ho had been struck by the number of remits actually put into effect. The country had gone through a year which had been "robably one of the most difficult in its history. The pressure which had been folt was not on account of internal arrangements altogether; they had had to Accept not only lower prices, and taere were also the continuing costs; and >hat seemed to him to be tho difficulty at the moment. After a reference to the Government's policy regarding unemployment (reported separately), Mr. Coates said he was pleased to be able to say chat for the live months ending 31st May of this year our exports amounted, roughly, to twenty-seven millions, i.nd ior last year our exports for tho same period amounted to twenty-five millions and a half—an increaso of £1,488,982. The imports for the five months ending 31st May amounted to £18,562,171 as compared with £20,999,905 for tho same period in 1926-^a decrease of £2,437,734. So that, in regard to the trade balance wo were better ft by £3,926,71G for tho first five months of this your. He thought that showed the effect of economy, also the tightcning-up of imports, and the increaso in production —the latter largely as. a result of the efforts of the primary producer. He agreed with the president of the conference that nothing could be accomplished by pessimism or "crying a.poor mouth." Of course, we must realise our actual position. In my opinion, wo have turned the corner, and wo are improving our position every day; and the outlook, for tho futuro is infinitely better" than it has been for tho last two years. "A SCIENTIFIC TARIFF." Thero was, of courso, the question of our markets to consider, and no doubt tho conferenco would also discuss tho tariff, and other matters affecting the fanners. Ho doubted whether anybody could follow a policy of froo trade and substantiate it, and neither could they follow a policy of protection and substantiate it. Each item must be considered on its merits. It seemed to him that it was a scientific tariff which thoy must consider. They could not throw down a proposal and say that that was one they wero going to follow, because it might have an immecliato adverse effect on a great section of tho community. Referring to primary products in. a general way, he said the past year had been most satisfactory from tho point of view of output. In 1924-25 there was what might be described as the peak year (for the eleven months ended 30th June, 1925), when we exported 09,861 tons of butter and 69,809 tons of cheese. For the eleven months ended 30th Juno, 1927, 71,066 tons of butter and 76,113 tons of cheese had been exported. These figures showed that tho farmer had not been idle—at any rato that he had been doing his work quietly and without complaint. "Our job is to see," said Mr. Coates, "how we can improve his capacity to increase production still further. If the primary producers of this country are able to make both ends meet reasonably, tho rest of the community will share in the prosperity." DOMINION'S WOOL. In regard to -wool, the figures for the last two years were:— 1926-27. 1925-26. Actual sales (greasy and scoured) . 513,461 bales. 491,582 bales Gross value £9,208,118 £8 262 847' Valuo per ' J^ le £17 18s 7d £16 16s 2d Value per lb 12.48 a 11.80 d Total Dominion clip . 625,766 bales 585,910 bales (including 81,200 bales slipc wool, and wool shipped on growers' account but excluding carry-over from previous season.) The wool had been distributed as follows:— TT .. , _r. Bales. United Kingdom 271G61 £ ranco 40>43 Germany and Austria .... 09,913 U.S.A. and Canada 21220 Japan, China, India, Africa 7^860 Other countries is 030 Local 83^934 Bales sold 513,461 i There had been satisfactory increase

in the number of sheep. "We were really about half a million short of the peak year. There had been a record crop of wheat. The figures and facts he had given showed that tho farmers had been increasing their products, and the sales showed a satisfactory increase in quantities. THE DOMINION'S DEBT. A matter which had recently been discussed was the borrowing of the country. It was true that something over £7,000,000 was due each year for the Public Debt, and of that over £5,600,000 was earned by the money we had borrowed—that was to say, the users paid for it. Some people might speak of the Public Debt, and say that we had borrowed five or six million pounds and had to pay interest on it, whereas, as a matter of fact, perhaps £1,400,000 was expended on railways, electric power supply, and other public services, in addition to advances xo settlers liability, which latter was no debt at all in reality because it paid its own way. There had been some comment in connection with the development of the country and the borrowing of money. The policy of endeavouring to give the backblock settler access to markets had been clearly laid down. There was also the developmental side of the question to consider. In this respect he mentioned, as an example, the East Coast railway and the North of Auckland railway. He also alluded to the expenditure ou telephone communications, the cost of which was not borne by the general taxpayer. .He dealt with the question of roads in opening up the country. Allusion was made to the question of local rating. After touching on the question of rural credits, Mr. Coates said that an Intermediate Credit Bill was being lifted which he hoped would be cousidered by a committee of the conference because the proposals in the Bill affected the farmers and the country. Legislation would be introduced dealing with the Agricultural College in the North Island and the Agricultural College in Canterbury. He emphasised the value of scientific research in this connection. In conclusion, the Prime Minister said we wanted to look to the future with confidence, and he. thought we could look for much better prices, and must do all that was possible to place ourselves in the position of being able to compete successfully with all countries with whom we were in competition.