NO MORATORIUM

Evening Star, Issue 20672, 20 December 1930, Page 22

NO MORATORIUM

■ — ~ -4-' GOVERNMENFS DECISION THE DAIRY INDUSTRY EXPERTS TO DIAGNOSE POSITION [Spbcut. to the ‘Star.’] WELLINGTON, December 20. The Hon. E. A. Ransom, Acting Prime Minister, to-day issued the lollovving statement covering several important decisions made by the Government :—■ "The Government has had under consideration the gcheral position of the country in all its aspects, and, while it recognises tbo grave difficulties of the situation due to circumstances and conditions perhaps unprecedented in the history of New Zealand, it deprecates any attempt to exaggerate the position, or to stampede the country into hasty and ill-considered solutions. In .the first placo on two question that have excited discussion in tho Press and at conlercnccs, and even elicited tentative pronouncements from public men —namely, the fusion of political parties, and the formation of a national Cabinet, and the early summoning of Parliament — Cabinet feels that these are matters that must await the return of the Prime Minister, who is entitled to a dominant voice in their determination so far as his Government and political party arc concerned. “ Then in regard to tho demand for an immediate assembling of Parliament, Ministcis do not consider this step either necessary, or wise at this juncture. I have recently announced tho view of Cabinet, and the Prime Minister has • definitely 'declared from 'England that a moratorium is undesirable. Thcs- views are supported by tbo State loan departments, which provide nearly one-half of tho total amount of finance for farmers, and’who say that there is not at present' .such a pressure from" their clients us would justify the application of a moratorium, even if that kind ot remedy were desirable, which they emphatically deny. “ The Government, thinking that a diagnosis of the condition of each section of industry was necessary and that it should be carried out in a sane ami practical way, lias as a beginning approved tbo sotting up of.if committee of experts in tho dairy industry, winch would determine the extent to which that industry is embarrassed, and suggest the form of assistance required. Tho trouble may be far greater than is realised, •or much less than general statements make out. It is recognised to bo serious enough owing to the severe fall in the price of dairy produce, but tho perturbation of many dairy farmers may rather be in anticipation of the effects upon their finance and holdings of the slump in prices than in consequence of extreme financial pressure applied by mortgagees. ‘‘Tho committee suggested to investigate the condition of tho dairy industry will consist of men who aro intimately acquainted with tho position of dairy farmers in their respective districts. The Department of Agriculture is getting into touch with men whose names have been suggested. The committee will be asked to meet in Wellington early in tho new year and to carry out their investigations with all despatch, “It is hoped that on the Prime Minister’s return tho actual position with Cabinet recommendations will bo ready for action. Those in the pastoral industry have made no direct approach to the Government for assistance. Tho Government took tho precaution a month ago to consult with the Government directors on tho Bank of New Zealand, who advised that not only was a moratorium undesirable but unnecessary at present. Tho Government gathered that although banking figures showed the strain on tho resources of all banks, accentuated in cases by the greater financial difficulties of Australia, all possible stops were being taken to maintain the strength of mercantile firms and station agents to support land owners and to assist farmers where they had exercised care and economy in tho management of their farms. ‘‘ The Government recognises as well tho heads of financial institutions and business men, that tho farmers who over-reached themselves in tho purchase of estates, or in expenditure, and have had a difficulty in normal times in meeting current obligations, will experience extreme hardship. It is prepared to meet delegations of each branch of industry which should be ready to state its actual and detailed difficulties and its suggestions for tbo minimum assistance required of tbo State.

“The position of tho public finances is appreciated by tho Government, and has been tho subject of tho closest scrutiny and consideration. “ Ilovcnne lias fallen in a much greater ratio than expenditure, duo to the samo causes that have affected all branches of industry, and more especially tho primary industries. The charges on the Consolidated Fund cannot within tho financial year bo shortened to the extent that will make up tho decline in revenue, owing to the heavy rigid annual outgoings for interest, pensions, and special permanent items that arc the accumulation of a generation of parliamentary and Government action.

“ In tho annual appropriations for services the first overhaul of the departments made last month at tho earliest available moment after tho close of the session, revealed tho extreme difficulty in the fact of sectional demands by institutions and tho public in curtailing, deferring, or cancelling tho expenditure of items voted by Parliament Economies proposed in certain departments, such ns defence and working railways, will not be materially effective within the financial year.”.