PARLIAMENT Committee To Consider Lime Subsidy Issue

Greymouth Evening Star, 15 October 1947, Page 10

PARLIAMENT Committee To Consider Lime Subsidy Issue

; ; WELLINGTON, October 14. An undertaking that the withdrawal of free railage on lime would be referred to the Agricultural and Pastoral Committee of the House bf Representatives was given in the House today by the Prime Minister (Mr P. Fraser). This followed a long debate on a motion for the adjournment, moved by the Leader of the Opposition (Mr S. G. Holland) for the discussion of this question. Mr Holland claimed that the withdrawal of free railage was a policy which must lead to a big reduction in production. He said an honest mistake had been made and he urged the Government to reconsider the whole position.

The unexpected debate was taken so i seriously, by the Government that its main "speakers were the Minister of Finance (Mr W. Nash), the Minister of Agriculture (Mr E. Cullen), the Minister, in charge of Stabilisation (Mr A. H. Nordmeyer) and the Prime Minister.

Mr-Fraser said that if any injustice had been done to producers on marginal land the matter should be looked into; Mr Holland said his motion was not an. attack on the Government, nor was it an attack upon those primary producers’ representatives who had participated in the negotiations with the Government from which arose the cancellation of the subsidy. 'Started 50 Years Ago Mr Holland, said that .in the cancellation of the free carriage of lime a serious mistake had been made, and in years to come, if that policy was continued, there would be a reduction in production. Free carriage of lime was instituted about 50 years ago, and successive Governments had continued that policy until now. The subsidy ,on lime should not be confused with subsidies in the ordinary way.

It was by free carriage of lime that primary producers were aided to stimulate production, so that New Zealand exports might be increased.

The decision to discontinue the free carriage of lime came as a. bombshell to many producers, said Mr Holland. The further south one went in New Zealand the greater dependence there was on the application of lime .to the land. There was a point at which the economic price of lime became

fixed at something to the order of £ 1 to £1 10s a ton. . ' Increased Cost of Lime It could be said in truth that farmers agreed to some extent to the removal of. the lime subsidy, but the meat and wool industries did not agree to that cancellation, because they never anticipated that free railage of lime would be eliminated, said Mr Holland. The increase in the price of bags, increased freight rates, and increased wages would result in an increase in the price of lime to beyond £2 a ton.' . . Mr W. S. Goosman (Opposition, Piako): It will be £3 10s to £4 10s in some cases. Mr Holland said the Government, when announcing the removal of subsidies, said primary producers would receive compensation prices to cover increased costs, but the meat schedule prices did not take increased costs because of the removal of the lime subsidy into account. The Opposition was desperately in earnest to see that production was maintained. There were many primary producers who would not be able to afford £ 15 a ton to get superphosphate on to their land, and between £2 and £4 10s for lime. A conference -might be called to discuss the problem among representatives of the dairy, meat, wool and cereal industries, the farmers’ federation, lime and fertiliser works-re-presentatives, and Government and Opposition delegates.

Relation to Prices . Mr. Nash, reviewing the history of the, subsidy on lime and its carriage by rail up to 100 miles free of cost, said that in 1943 a new cost structure was submitted to Britain in support of New Zealand’s claims for prices for butter, cheese, and meat, and that structure, which was accepted by Britain, included the cost of the carriage of lime. This year, at the 'determination of the Dairy Products Marketing Commission, which was the only body with authority to operate on the Dairy Industry Account, the fost of lime freight was being included in the price paid out to farmers for butter-fat.

Mr W. Sullivan (Opposition, Bay of Plenty): It comes from Britain in the first place. Mr Nash: Yes, but if the farmer now gets it included in the price paid to him for his produce is there any justification for his getting it twice by continuing to enjoy free railage? Mr Nash said there was ample proof that the cost of lime railage was included in this year’s prices for butter and cheese. If it was not included in this season’s meat prices—and he readily accepted the statement of Mr G. H. Griggs, chairman of the Meat Board, on that matter—then it must clearly come out of the Meat Industry Account as it did last year. Mr Nash said the Meat Industry Account had met 77 per cent, of the cost of lime carriage for several years. Marginal Land Mr Nash said the question whether cancellation of the subsidy on lime would tend to retard the bringing into production of third-class or marginal land was an entirely separate issue. It must be considered from a national point of view whether those breaking in such land should receive some assistance, but in any case free railage was not the proper way to assist such farmers, for most marginal land was remote from railways.

Mr F. W. Doidge (Opposition, Tauranga): Then the Minister does not share our fear of a serious fall in production? Mr Nash: I cannot see it. The Minister of Agriculture (Mr E. L. Cullen) agreed that-a decline in production must be avoided, but said the Government would abide by the statement he had made at the dairy conference last week: that if at anytime in the future circumstances changed the policy on lime would be reviewed.

The Minister said he had been assured by the chairman of the Dairy Products Marketing Commission (Mr W. Marshall) that the new prices allowed for an increase in lime freights and if the meat prices as announced did not make such an allowance, the matter could be considered during negotiations still to be completed between the meat industry and the Government. Mr Cullen said that since 1942 the total expenditure to July 31, 1947, on railage of lime was £1,015,793 and recoveries totalled £741,586, leaving the Consolidated Fund £274,207 to find. The average New Zealand price

for lime at the works was 18s a ton or £1 Os 8d with bags. The average cost with bags and railage would now be £1 Ils lOd. Cancellation of rail freights would mean an increase of 8s 2d overall in the Dominion and up to Us and 12s in some cases. Mr S. W. Smith (Opposition, Hobson), asking for reconsideration before conditions deteriorated, disagreed with the Minister of Agriculture and said the future price of lime would be nearer £2 ids 6d. It was estimated that, there would be a fall in the production of lime of between 20 and 40 per cent.

Use in South Island

Mr Pi. G. Gerard (Opposition, Ashburton) asked if it were not a fact that the Secretary of the Treasury (Mr B. C. Ashwin) made the first approach to farmers on the removal of the lime subsidy. Sixty per cent, of lime works’ output was used in the South Island* and he felt that it was probably right that the subsidy should be paid from the pool accounts. Mr Fraser, interviewing in the debate late in the afternoon, said marginal lands might have to be dealt with in quite another way. The withdrawal of the free railage of lime had been- made in consultation with the farming industry, but he gave an undertaking that the question would be referred to the Agricultural andPastoral Committee of the House for examination. My Holland said he welcomed this, but in the Opposition view any delay, for even one year, would be fatal to production. •

BACK-BENCHER’S BRUSH WITH DEFENCE MINISTER

(P.A.) WELLINGTON. October 14. He did not think it would have

been fair to bring out Royal Navy officers to New Zealand and have them suffer hardship in pay, said the Minister of Defence (Mr F. Jones) in the House of Representatives, during the discussion of estimates this evening. The rates they received were those operating in the United Kingdom.

Mr A. C. Baxter (Government, Raglan): We’ve only got a fishing fleet in New Zealand. They’ve got a Navy in England. Mr Jones: You have belonged to the Air Force, and don’t think there should be a Navy here, but there are other opinions on that. Mr G. H. Mackley (Opposition, Wairarapa) said that when he recalled the part played by the Achilles, manned by New Zealanders, in the Battle of the River Plate, he thought the remarks of the member for Raglan did that member no credit. Mr Baxter: It did not do it on its own by any means. Mr Baxter added that what he wanted to see was the establishment of a fleet air arm in New Zealand.

VALIDATING BILL FOR RECENT PENSION RISES (P.A. WELLINGTON, October 14. Legislative authority for increases in the basic rates of Social Security monetary benefits, war pensions, the economic pension, war veterans’ allowances, and in pensions paid to the dependants of. members of the Merchant Navy who lost their lives in the war is provided for in three Bills introduced in the House of Representatives today. They are the Social Security Amendment Bill, the War Pensions Amendment Bill, and the War Pensions and Allowances (Mercantile Marine) Amendment Bill.

A clause in the first Bill empowered the Social Security Commission to delegate some of its powers to district officers, including in appropriate cases authority to grant benefits. The commission can review any decision of a district officer and an applicant for a benefit may appeal to the commission against a decision of a district officer.

A clause in the War Pensions Amendment Bill increases by £2 the clothing allowance paid to amputees and wearers of other artificial appliances. The allowance for the services of an attendant where one is required by a former serviceman is increased by 10s to £5 10s a week. ’SECURITYRISKS’ IN PUBLIC SERVICE

(P.A.) WELLINGTON, October 14. The Prime Minister (Mr P. Fraser) was asked in the House of Representatives if his attention had been directed to the reported decision of the United States Government to dismiss instantly any employee of the State known to be what was called a’“security risk,” and if the New Zealand Government proposed to adopt a similar rule for the New Zealand Public Service. The questioner was Mr G. H. Mackley (Opposition, Wairarapa), who gave notice of his intention to ask the question of the Prime Minister.

In' a footnote, Mr Mackley said that, according to a recent press report, the United States Government had classified under five appropriate headings employees coming within the definition of “security risks,” the main classication being a person who was a member of, affiliated with, or in sympathetic association with, the Communist, Nazi, or Fascist parties, or any other movement seeking to overthrow the Government by unconstitutional means.

Mr D. AV. Coleman (Government, Gisborne): Do you know any in New Zealand? An Opposition voice: Yes. Another Opposition member: We do.