SUPREME COUNCIL

Evening Post, Volume CXVIII, Issue 106, 1 November 1934, Page 14

SUPREME COUNCIL

PRIMARY PRODUCERS

NEED FOR CO-OPERATION

DEFENCE OF BILL

The action of the Government in including a provision in the Agriculture (Emergency Powers) Bill for the setting up of a Council of Trade arid Production was defended by the Minister of Finance (the Rt. Hon. J. G. Coates) in the House of Representatives last' night on the ground that a co-ordinating authority was needed for the purpose of furthering the interests of the different sections of the primary producers. The Minister was of the opinion that the present control boards were not adequate to deal with marketing problems. Mr. Coates said that the proposed Council of Trade and Production had been described as a bureaucratic triumvirate, but it had to be remembered that it was being.givon much the same powers as those held by the control boards at the present time. Those powers had never been fully used, although they were latent. When the Government appointed three men to the council it would make sure that they would act in the interests of the producers of the Dominion. It had been- suggested that the members of the council should be the chairmen of the three principal control boards, but against this proposal it should be pointed out that there was a definite difference of opinion among the various boards, and that fact made the suggestion impossible. Mr. B. Semple (Labour, Wellington East): Isn't the problem a price problem? Mr. Coates agreed that the price problem was the vital one, but much could bo done by a policy of co-ordination among the different sections of the primary producers, and such co-ordina-tion could be brought about by the proposed council. He thought that the element of political control should be eliminated except when it came to a question of negotiating with other ' countries. The council could do valuable work in investigating avenues of marketing in other countries. It could cooperate with' the High Commissioner and the trade commissioners in different parts of the world. The Government had had representations from the woolbrokcrs, who had asked whether the council's powers extended to the marketing of wool. Mr. A. M. Samuel (Independent, Thames): That is so. Mr.' Coates said that any industry could take advantage of the organisa^ tion t but he was prepared to exclude any'producers not covered by existing legislation until they made a definite request to come in. Itwas likely that wool would be one of the problems in the negotiation of agreements. POLITICAL PROPAGANDA. The Minister said that the epithets which had been used to describe the council were all right for political propaganda purposes, but the position was far too serious for one to be influenced by any propaganda. The duty of the council, which would consist of two primary producers and a business man, was"not-.to dictate to the control boards but to ec-operate with them, and one would expect that the council would go a long way in smoothing out the difficulties ■ and conflicts which existed today. At the same time it would explore various markets. Mr. P. Fraser (Labour, Wellington Central.: Why give the council powers it is not intended to use? Mr. Coates: Does,the honourable member suggest that it should use them? Mr. Eraser: I suggest that the Minister should be in earnest. Mr. Coates said that extravagant statements had been made in an endeavour to prevent Pa-rliament dealing with problems which had never been oncountered before. It had been stated that the eradication tof bovine _ tuberculosis was a minor matter in view of the fact that the disease infected only a very small percentage of the New Zealand dairy herds, but if the disease was entirely eradicated the Dominion could say that it had tho purest products in the world. There was also room for improvement in the dairy farmer's equipment in order that he could supply his factory with wholesome milk, but one could not expect the .farmer to carry out tV necessary improvements unless he had tho money. Mr. D. McDougall (Independent, Mataura): Will the money be supplied free to the farmers? Mr. Coates said that the industry would benefit as the result of the expenditure. The money would not be given to the farmer, but the terms would be as liberal as possible. If the Dominion could assure the overseas consumer that New Zealand's products were the purest in the world, he would be able to command a better price. The Minister said that any regulation issued under the Bill would have to be enacted in tho next session of Parliament, and that would be a safeguard that should satisfy members. r lhe Commission had proposed _ that £3,000,000 should be expended m the improvement of herds and factories, and tho Government proposed to spend £500,000 during tho present financial year which ended on March 31 next. If the purity of the New Zealand product was ensured, there would not be the disparity between tho product of the Dominion and that of Denmark. EXCHANGE RATE. The Minister said that the Leader of the Opposition had blamed the exchange rate for the disparity between New Zealand and Danish prices, but it had to be remembered that Australia had raised her exchange rate long before Now Zealand and that Denmark had adopted a similar policy a few days before the Dominion. The exchange rate had not had the slightest influence. It had been suggested that the "Government should endeavour to fix an arbitrary rate of interest based on prices, but such a policy was fraught with dangers. What was wanted was a scheme that would ensure that the farmers would pay the market rate of interMr. A. S. Richards (Labour, Roskill): Regulated by the banks? Mr. Coates said that it was hoped that the banks would play their part in fixing an equitable rate of interest, and the proposed mortgage corporation would assist in the establishment of confidenco among the investing public. Before the corporation could be set up, however, a great deal of preliminary work had to bo done, and it would bo six or seven weeks before the legislation could be drafted. It was essential that they should have -the co-operation of the investing public, and it was definitely not the intention of the Government to ride rough-shod over the existing investments and the existing organisations which were finding the money for the farmer. An amendment was being introduced in the Finance Bill which would give the State lending departments the right to make treaties with mortgagors. Mr. Coates again stressed the_ necessity for a co-ordinating authority for tho primary industries, and said that in his experience as an administrator

it WH3 absolutely m>sssary,to have coordination with the various branches of the primary industries. He did not object to any qualification of the powers of the council, but .concluded by stating that some such body was necessary in the interests of the producers.