HELP FOR FARMERS

Evening Post, Volume CXX, Issue 109, 4 November 1935, Page 10

HELP FOR FARMERS

MINISTER'S .REVIEW-

GOVERNMENT DEFENDED

(By Telegraph—Press Association.) ; TAURANGA, This Day. The Minister of Agriculture (the Hon. C.. E. Macmillan) addressed a largely-attended meeting at Katikati on Saturday night. Mr. Macmillan. who met with a splendid reception by a big audience, vigorously defended the Government's policy during the past lour years. He pointed out that it was imperative that the Dominion's greatest asset, its farming lands, should not be "allowed to deteriorate. To ensure this the farmer had to be assisted. Many people claimed that the Government had had a care for one section of the community only—the farmer —and that was still being urged in some directions. The farmer had been assisted and rightly so, in the following principal directions:—(l) Subsidising the purchasing of fertiliser, thus lowering tha cost; (2) by lowering interest rates on mortgages by 20 per cent., with a limit downwards of 5 per cent.; (3) lowering counties' interest on loans; (4} lowering railway freight on farm produce, totalling £145,000 in the first year of operation; (5) assistance to farmers from the Unemployment Fund to the extent of £250,000 per annum; (6) assistance to counties from the Unemployment Fund, totalling £900,000; (7) by raising the exchange rate from 10 per cent, to 25 per cent., thus providing an additional 15 per cent, to the primary producers' gross income. The financial effect of this policy, he said, soon became apparent, with the ultimate result that the national Budget had been balanced and a large measure of restoration of the cuts in salaries and wages had been brought about. A clear indication of the Dominion's recovery was afforded by the Post Office Savings Bank returns, which showed that deposits for the past six months were a record —a striking commentary on the assertions made in some quarters that the people had no confidence in the- Government and were frightened to invest. ' THE EXCHANGE POSITION. In rebuttal of the statements made by some that the raising of the exchange rate was a violation of the Ottawa Agreement, Mr. Macmillan read verbatim an extract from a report of a debate in the House of Commons on April 11, 1933, in which the Rt. Hon. .T. H. Thomas, Secretary of State for the Dominions, in reply to a specific question, stated that there was a treaty between Great Britain and the Dominion, but that the raising of the New Zealand exchange rate was not a violation of it. In reply to those who believed New Zealand could, obtain better terms for her products exported to the United Kingdom if we reduced our tariffs, he real a cablegram from the New Zealand Government to the United Kingdom Government on October 25, 1933, asking if this were so. The reply, dated December 23, 1933, stated clearly that this would mean a change in the definite policy of the United Kingdom, and certainly could not apply to New Zealand alone. In a speech in the House of Commons, the Rt. Hon. J. H. Thomas had emphasised this. BORROWING POLICY. Mr. Macmillan characterised as outrageous the statement made by an opposition candidate that in the past, even in prosperous years, the Government had borrowed to pay interest on loans. The official accounts showed clearly and exactly how surpluses were disposed of, and these surpluses could not exist until all accounts (including interest on loans) had been paid. Previous surpluses had quite rightly been used to offset any subsequent deficits. In rebuttal of the statement that the Government proposed now to borrow further moneys overseas, he quoted the policy set out in this year's Budget. Mr. Macmillan pointed -out the conflict of opinion that existed in leading Labour circles as to what guaranteed prices meant and how they were to be financed and maintained. Until there was some definite proposal that idea could only be considered as a bait of a different nature to suit deep or shallow waters—one thing in the country and another in the towns. Mr. Macmillan commended the Government manifesto to his audience, for thoughtful consideration. In it they would find no vain financial dreams for improving conditions, but sound, practical proposals for the amelioration

of social and economic conditions in New Zealand. Mr. Macmillan was heartily applauded on resuming his seat, and received a vote of thanks and confidence.