URGED BY DAIRYMEN

Evening Post, Volume CX, Issue 133, 3 December 1930, Page 12

URGED BY DAIRYMEN

SAVING THE INDUSTRY

A SERIOUS PLIGHT

The serious plight of the dairying industry as a result of the fall in the value of butter and cheese was urged by a deputation representing the National Dairy Association and the Dairy Export Control Board, which waited on the Minister of Native 'Affairs (the Hon. Sir Apirana Ngata) and the Hon. R. Masters to-day. It was suggested by speakers representing die National Dairy Association that Parliament should be called together in February for the purpose of declaring a moratorium, as many dairy farmers were afraid they would not be able to meet their obligations. Sir Apirana said the calling of Parliament together was a matter for the-Prime Minister, and that would have to stand over until Mr. Forbes returned. In the meantime, however, he would discuss the problem with his colleagues, and in collaboration with representatives of the dairying industry an inquiry into the position of the industry would be made. The president of the National Dairy Association (Mr. A. Morton) said New Zealand at present was passing through one of the most critical periods of its listory. Prices of primary produce had fallen to such a low level that he thought he was right in saying that ,their prices to-day were no better than •they were six years before ■ the war. The whole position was an exceedingly serious one, and the advances they were receiving on their produce had dropped as low as 4-Jd a 1b on cheese and 9d on butter. It was in the interests of the Dominion as a whole that the farmers shbuld keep up their production, but under conditions as they existed to-day that would be a very /difficult matter. They still had their charges, such as principal, interest, and rent to pay. He ventured to say that there were many farmers who would be unable to keep going even if they were relieved of the necessity of paying their interest and other charges.

WORSE THAN THE WAR YEARS.

It was urgently necessary, said Mr. Morton, that the Government should take som,e step to bring relief to tlie dairy farmer, for if the farms were allowed to go out of production it would be a very sdrious matter for the icountry as a whole. They were making the suggestion that the Government might consider the re-enactment of the moratorium which existed during the period of the war. Conditions to-day were as' bad, if not worse, than they were in the war years. Sir Apirana Ngata said the moratorium would be largely for the benefit of the individual farmer. What was the position of the dairy companies? Mr. Morton replied that he believed their position was all right. They did aiot make over-advances on the produce, and in that way they were able to keep their finances in a sound position. If over-advances were made they had the power of reclamation, and, unfortunately, some of the companies had exercised that power. Sir Apirana said that the deputation "was suggesting the. most extreme remedy. Before the Government could enact a moratorium it would have to consider all the interests that would-be affected. Mr. Morton said it was for the Government to decide on the remedy. If a moratorium was not considered advisable, then'some other course could be followed^ but .• the industry had to be assisted.

URGENT NEED FOR ACTION.

The chairman of the Dairy Control Board (Mr. W. A. lorns) said the members of his board were not satisfied that the reinstatement of the moratorium \vould be the right course to follow, but they were satisfied that there was an urgent need for some action on the part of the Government in order to assist the dairying industry. To-day they were facing the worst slump in the history of New Zealand so far as primary produce was concerned, arid what they asked the Government to do was to assist the man who was financially up against it. . Mr. F. H. Anderson, chairman of the Cambridgo Dairy Company, said there was a necessity for a moratorium or a general lowering of the interest rate. If the interest were lowered, that would enable a number of farmers to capitalise their interest, and thus get over their present difficulty. Mr. Anderson made special reference to the plight of returned soldier farmers who had consolidated their position, and would have been able to carry on had they received a fair return for their labour.

MEN MAY BE PUSHED OFF THEIR LAND.

Mr. Dynes Fulton, chairman of the New Zealand Co-operative Dairy Company, said to-day there existed a great possibility of men being pushed/ off their land. In many cases mortgages were falling due, and the doubt as to whether the mortgagee would meet them was causing many men to become depressed. That was not in the best interests of the country. They wore prepared to admit that the passing of a moratorium was a drastic step, but there was no doubt that something had to be done if the dairying industry was to be saved. Some scheme was needed that would give confidence to the dairying industry. Mr. J, B. Corrigan, a member of the Control Board, said that what was needed to-day was a Mussolini-like Government that would say definitely that it was going to stand by the farmers in iheir difficulties and see that they were not filched in any way. If the Government would take that step it would be an incentive for the dairy; farmer to do his best to pull round.

MORATORIUM A MISTAKE.

Mr. W. D. Hunt, another member of the Control Board, said ho did not think it was clearly understood what the war-time moratorium meant. Under the war-time moratorium the only man who was protected was the man •who paid his interest regularly and the man who did not pay his interest received no protection. It was obvious, therefore, that it -was the strong man who was protected and not the weak. Any man at the present time who paid his interest was having no trouble with his mortgagee, and those who could not ■pay their interest, if they were handling their property efficiently, were being met by the mortgagees. It would be a mistake to restore the moratorium. It would be a lot better for the Government to leave things alone, and let everybody adjust matters between themselves. AYhat the Government really wanted to do was to get down costs, Bud they could host do tli.it by starting with Government machinery. The point was made by Mr. J. G. Brechin, of Pahiatua, that the dairy farmer to-day was producing Ms butter and. cheese at less than cost price.! He suggested that the time had arrived for Parliament to be called to-

gather, and suggested that it should meet in February to deal with the situation. Sir Apirana: "Do you think the industry can carry on until then1?" Mr. Brechin: "I think so." | Sir Apirana: "That is the first nice thing you fellows have said." (Laugh- ' ter.)

FINDING A REMEDY.

Beplying to the deputation, Sir Apijana Ngata said that members of the 4'eputation would realise that he and Sir. Masters were not in a position to siiy that day what the Government \viould do. The Prime Minister had a rijvht to be consulted'as to whether Parliament should be called together or not. The Government was like a board of directors, and it had to consider all phases of the question before it reached a definite conclusion. The presicnt deputation was the first official intimation the Government had had of tihe plight of the dairy farmers, and whether the calling of Parliament together was the remedy or not would have to be thought out. They would have to explore every other method first. The Government would have to have tihe co-operation of the industry, for th«y best brains of the country' were not in the Government. (Laughter.) A voice: "Open confession is good for the soul." Sir Apirana: "Well, we have been told thai so often." What they wanted to do wa*i to get down to tin-tacks. At the present time they wanted to keep their heajds cool. The Government would take the matter into its earnest consideration. The Acting-Prime Minister (the Hon. E. A. Eansom) was expected bat'.k next week, and in the meantime they would try and work out some plan fo place before him. Other primary industries were in a similar plight, and it had been suggested that the Government should advance £1,50G',000 to the sheepfarmers. What would the dairying industry need? Mr. Brechin: "£10,000,000 to bring them up to tlicir proper level." Mr. Corriga-n said that the dairy farmers would bo £6,000,000 down. Sir Apiranar "Well, yqn can't expect the Government to advance that. We may be able to get down to something _ less than that.'' His personal experience was that, some mortgages were being called up, and it was possible that others would be called up in anticipation of a moratorium. The Government would consider the setting up of a small working committee.