DAIRY SURPLUS

Evening Post, Volume CXXVI, Issue 6, 7 July 1938, Page 6

DAIRY SURPLUS

"POLITICAL EXPEDIENCY"

The allegation that stability had been sacrificed for political expediency' in the distribution of the surplus in the Dairy Industry Account, was made by Mr; H. G. Dickie (National, Patea). He wondered, he said, how ( many times the Minister of Marketing had stated that there would be no bonus to dairy farmers. Everybody had believed that the Minister would take the high prices of one year and the low prices of another year and thereby obtain stability. He had predicted last year that the Account would be £2,000,000 short, and yet, when the year's operations were concluded, there was a surplus of £1,000,000. There would even be a surplus.after the £800,000 was distributed. "IN THE STEPS OF FRANCE." Mr. Dickie expressed surprise at the Prime Minister's t complaint that a whispering campaign had been started to destroy New Zealand's, credit overseas.. Mr. Savage had visited London and must have met many people who obviously had the welfare of the Dominion at heart. There was no doubt that the reason why New Zealand's stoctas had fallen in London was the policy of the present Government, the enormous expenditure on uneconomic. undertakings, and. the fact that New Zealand was drifting rapidly into Socialism. New Zealand was following in the steps of France, which had gone in for the 40-hour week and a vast public works-programme, and French history for the past eighteen months did not make very pleasant reading. Not only had French stocks fallen, but France had been compelled to depreciate her currency by 50 per cent. New Zealand had to reconvert £17,000,000 by January next, and the present Government might just escape having to finalise the transaction. (Opposition laughter.) Nevertheless, an extra h per cent, would mean an extra £80,000 in interest. It was imperative that the country's credit should be kept at the highest level while such large sums of money were involved, and it was extremely damaging to see money, being scattered about and'nothing economic to show for it.