MARKETING OF HIDES

Evening Star, Issue 23497, 10 February 1940, Page 20

MARKETING OF HIDES

PROTEST FROM FARMERS’ PRESIDENT ALLEGED VIOLATION OF PROMISE The following is a copy of a letter which has been addressee! to the Minister of Marketing (Hon. W. Nash) by the Dominion president of the New Zealand Farmers’ Union (Mr W. W. Mulholland) under date February 7, 1940: “On behalf of the New Zealand Farmers’ Union I desire to repeat my strong objection to the principle involved in the proposed scheme for marketing hides, under Avhich the farmers are required to subsidise other industries by supplying them with their requirements at lower than a parity market value. 1 desire to protest to you most emphatically against the unfairness of compelling farmers to bear the Avhole burden of this subsidy, and I would point out to you that the burden is not even equally distributed Over the farmers themselves, as the proportion of the value of stock represented by the hide varies tvith different classes of stock and may generally be said to be much higher in regard to the stock a dairy farmer has to sell than that which the producer of beef cattle has to sell. Consequently this method of subsidy becomes proportionately a more severe impost upon the dairy farmer than upon the regular beef producer. “ I Avould further bring to your notice that one of the most urgent problems with Avhich the Government is confronted in. Ncav Zealand is that of making available to the farmer a sufficient return for his produce to enable him to pay competitive rates of Avages with other industries which is, as you knoAv, at the'root of the farm labour problem. This scheme is actually intended to reduce the farmers’ returns. •

“I AA'ish also to object to the proposal to establish a Government marketing organisation for marketing hides as.being a violation of your definite promise that the Government would not control commodities 'Avhich were not purchased by the United Kingdom Government. It is a further violation of your definite statement to a deputation from the Dominion executive of the Farmers’ Union on November 2, 1939, when you stated that the war would not be used as an excuse for the extension of Government control of the marketing of primary products. 1 hope that the proposal will be very carefuly reconsidered before you place me in the position of having to regard the promises of a Cabinet Minister as being unsubstantial.

“ In your telegram you have raised the point of securing the supnly of raw materials for local tanners. It is easily possible'without any extensive marketing scheme to secure the full requirements of the tanners, and representativs of the Farmers’ Union have offered, with my cognisance, to place the tanners in a better position than they were in normal times. That is to say, to give them the first refusal of all hides with the opportunity of picking those that they desire to take. This was a very generous offer, as you must realise, and would mean some sacrifice to those whom I represent. “ Farther, if you are determined that the farmers must supply local requirements at below their true value, it is easily possible to do this without any extensive' control by simply imposing a levy bn hides by which the tanners could be reimbursed the amount which their hides might cost them over and above the price at which it was determined that they should be supplied. This would make entirety unnecessary the expensive and complicated organisation which it has been, suggested that you should set up, would enable the ordinary marketing channels to be used without any interruption or dislocation, and particularly would maintain the channels of trade with other countries which, it is so essential, should be maintained intact for happier days when the war is over.

" I would remind .'you again of your definite promise that the existing channels of distribution with regard to primary products would be maintained in order that they might be in a position to function when control is abandoned at the conclusion of the war, and would point out to you that the operation of the suggested scheme would inevitably destroy most of those channels of trade and would violate still another of your undertakings. " I hope that before a final decision is arrived at you will give the fullest consideration to the points raised and to others that have been put before you by our representatives from time to time. I can assure you that in the attitude which I am presenting to you I have the very strong support of my organisation."