PROBLEMS AHEAD

Evening Post, Volume CXL, Issue 52, 30 August 1945, Page 6

PROBLEMS AHEAD

DOMINION FARMERS

INTERNATIONAL ASPECT

O.C. WANGANUI, August 29. The view that in the immediate future the farmers of New Zealand were not in for an easy time, and that there was need for an understanding with other farming countries, was expressed at the first provincial conference of the Federated Farmers of New Zealand today by Mr. A. P. O'Shea, secretary of the New Zealand Farmers' Union. Mr. O'Shea said that they would all regret the passing of the New Zealand Farmers' Union. The union had done a good job for the man on the land in its 40-odd years of existence, but for the sake of unity the new move was well worth while. The union's real job was to watch the economic policy and the economic situation of New Zealand, and to see how it affected the farmers and to protect their interests. That would be the main job of the Federated Farmers,, but they would have to be better equipped than the union had been to do the job. The biggest job, however, that the Federated Farmers would have to do would be to watch the economic trends, particularly overseas ones. The farmers of the world would have to get together to protect their interests. Labour had already done this with striking success, and it was interesting to note that at San Francisco, when the set-up of the Economic and Social Council was under discussion and ' the question of representation of bodies other than Government bodies on the Economic Council was considered, the New Zealand delegation asked only that the International Labour Office be associated with the Economic Council. Even the New Zealand delegation from a country entirely dependent on farming did not think it necessary that farmers' organisations should have some say in the deliberations of the United Nations International Organisation. OVERSEAS AFFAIRS. Farmers as a whole would have to take a much greater interest in overseas affairs. They would have to see to it that their markets were extended and preserved. Farming was the one occupation which could compete in world markets on a payable basis, and there was no doubt that they could expand production enormously in New Zealand given the proper conditions. The world was a hungry world, and New Zealand must help to provide the food and clothing for the hungry and shivering peoples of Europe and Asia. The only way to do this was to trade with them or to make them gifts of our produce. It was essential that there be an understanding with the other farming countries in the world. In the immediate future the farming industry, and consequently New Zealand, was not in for an easy time. The cessation of lend-lease was not a reassuring portent for easy economic conditions. Britain was hard up. Also, if Britain adopted the 40-hour week, as she had as much right to adopt as New Zealand had, her ability to pay for imports must be lessened. It was possible that the Dominion might be asked to help to pay for shorter hours for the workers of the United Kingdom, which meant a lower price for our produce. INSULATION IMPOSSIBLE. The Federated Farmers would have to fight strenuously to oppose the great movement in New Zealand towards the setting up of monopolies for everything. These were created by the people, but it was forgotten that they might have to be bought back at some future date, and at a very heavy cost to the people. If they .did not, then, like some proposed industries, the people of New Zealand would have to pay for them by continuing extra costs. They had to get away from the dangerous fantasy of self-sufficiency; insulation of New Zealand was impossible. It was certain now that the policy of bulk purchase by the United Kingdom was going to continue, said Mr. O'Shea, and there would be little trouble in this connection for at least five years, but after that New Zealand would have to watch the position carefully. Bulk purchase was not the full solution. There were several drawbacks to bulk purchase, one of them being that it did not envisage an expanding market for New Zealand farm products, and the second was that there was no provision for taking care of surpluses which could not be sold on the United Kingdom market. Low prices anywhere for farm products prejudiced good prices everywhere. They had to see that surpluses were not allowed to compete with the ordinary supplies on the good markets. Mr. O'Shea was of the opinion that some system of buffer' stocks would have to be adopted to deal with surpluses. These could be used to feed the starving people of the world without ruining good markets such as the United Kingdom or U.S.A. They could be financed by a small levy on produce exported which would amount to an insurance premium.