The Evening Star WEDNESDAY, SEPTEMBER 10,1930. LAND SETTLEMENT.

Evening Star, Issue 20585, 10 September 1930, Page 8

The Evening Star WEDNESDAY, SEPTEMBER 10,1930. LAND SETTLEMENT.

Mr Hansom, Acting-Prime Minister, tabled in Parliament yesterday the results, practically to date, of the United Government’s achievements in the first step of closer settlement. This was one of the cardinal planks in the party’s election campaign which led to office. It was to be the chief solution of New Zealand’s problems, as they were seen then, and it was to constitute a shrewd strategic attack on the unemployment problem, as against the frittering away of strength on expensive and futile frontal attacks. The party’s predecessors in office had discontinued land settlement after the unpleasant experience on behalf of returned soldiers. The Reform Government had paid peak prices for land, based on peak prices for the land’s products. These latter declined, and to stay the “ walkingoff ” movement the Government had to do some nursing and much writing off, involving the making of a considerable hole in the country’s finances. Now the question arises whether the present Government is going to fare much better. On his arrival in Wellington from Australia Sir Otto Niemeyer was interviewed, and among other interesting things he had to say (chiefly about the currency question and banking reform in New Zealand) was as to the movement of commodity prices. He said that they were still falling throughout the world, and showed no signs of ceasing to fall. Ho found it difficult to see any probable rise in wheat or wool, in which Australia was particularly interested. New Zealand, of course, was not an exporter of wheat, he added, but was interested in dairy produce, and had an advantage over Australia because of onr more varied pro-

duction and freedom from droughts. New Zealand farmers in the past have ( had a decided advantage in that bo many of them have been able to switch over from one form of production to another according to which particular markets have offered the best results for the time being. But that advantago appears to be dissolving in the general downward trend for primary products. In the past dairying has been one of New Zealand’s sheet anchors. Just now it seems in no better position than any other form of production, and worse than some. At to-day’s market prices the New Zealand dairy farmer can, as a whole, do nothing else than produce at a loss (except as regards the “sheltered” local market, the local consumer of both butter and cheese paying well above world parity). The situation as regards cheese is bad enough, but in respect of butter it is even worse, and it may be said that the producer cannot obtain more than Is per lb (on an average of both butter and cheese) for his butter-fat. That mostly means production at a loss. Supposing the sag in markets to be only temporary, and resort to borrowing to tide over is contemplated, the farmers’ co-opera-tive dairy concerns are debarred from making that kind of advance, and it is difficult to name another source from which accommodation would be readily forthcoming. There are possibilities of the prices righting themselves partially by a number going out of production, some voluntarily, others perforce; though the effect of such a development on world prices would be minute unless the same thing happened in other dairying export countries as well. The United Government has purchased 64,650 acres for £662,964. This gives an average price of £lO 6s per acre. As some of the purchases are of sheep country, it is obvious that to reach that average price some of the land is destined for dairying and mixed farming. But whatever the purpose to which tho land is being put or to be put, the crucial point is whether capita! charges are likely to constitute a prohibitive item in costs of production which it is more than ever imperative should be brought to a minimum if the farmer is to be able to carry on. Thus far 182 settlers have been or are being placed on land which has been bought for £608,153. This averages £3,340 per settler. Possibly the cost is greater, because of loading for reading and other subdivisional expenses. The Land Purchase Controller stated in his annual report to Parliament that every care has been taken to safeguard the interests of the Crown, and his board is confident that tho purchases so far made are sound both with regard to the price paid and the quality and general adaptability of the land concerned. But to be able to display that confidence one should be in possession of tho levels at which prices of products are going to be stabilised, and it is highly probable that since Mr J. B. Thomson penned those words the interim trend of markets may have rather undermined that confidence. The amount which it costs the country to place each new settler on tho land (independent of the finance needed for stocking, etc., wherever obtained) will possibly surprise tho taxpayer. He should take a personal interest in the progress of tho new settlements, knowing that if it is not satisfactory heavier taxation will bo involved, which would further handicap the struggling settler. It is surely incumbent on the Government now to see that means be taken to expedite the laggard downward movement of retail prices, especially of the farmers’ requirements, for these are almost inexplicably showing a minimum of sympathy with the stabilisation of primary products on new levels. The Government can hardly be blamed for carrying out its closer settlement pledges. It acted in all good faith and doubtless strove to ensure good bargains; but it cannot forecast the future. It can hardly blunder so expensively as its predecessors, because, not having bought on a “peak” basis, the fall it may have to face cannot be so great: besides its operations have been on a smaller scale. Nevertheless, the cost of each new settler to tho country is rather disturbing to contemplate, all the more so when it is remembered that, in some cases at least, the land is not going to carry more man power than it did before subdivision.