FARMERS’ PROBLEMS

Gisborne Times, Volume LXV, Issue 10376, 6 April 1927, Page 6

FARMERS’ PROBLEMS

MR, LYSNAR WRITES TO PRIME . MINISTER. CRITICISM OF MR. JONES’ ~ PROPOSAL. OPPOSES VISIT Of RELEGATION TO UNITED' STATES. WHAT THE PRODUCERS ARE UP AGAINST. • LOW PRICES~FOII MEAT AND POOR FINANCE. LESSON TE WEE A TEACHES. Under date March 30 Mr. W. D. Lysnar M.P. hasi written to the Prime. Minister as follows: “Dear Sir,—l read Mr. David * Jones’ letter to you under date Feb. ■2l in the public press to-day, and smiled when I did so, realising it was an ingenious attempt to magnify a side issue and try and make it the main cause of this Dominion’s want of better progress. In fact, lie, in effect, attributes all our ills to the work ’of the Arbitration Court, and thinks that you should send a deputation of four to America to investigate how labour matters are dealt with there, and then legislate accordingly. . . . This is the old cry to, m fact, set up a Commission and gain time —a good “Taihoa policy”. In the first place, let me say regarding the farming industry, except in connection with cost of shearing and freezing, the Arbitration Court does not, *ortunately, directly interfere with the general farm labour. No doubt, indirectly every award of the Court s hits back on the producers, but this cannot be seriously suggested as the. main cause of complaint. Now, Mr. Coates, while I agree that preference, to Unionists is not benefiting the Dominion, and should, upon certain events happening, be stopped by legislation, as I ha'e already so exnressed myself m the House, I suggest this is a minor phase shackling the farming and other interests of this Dominion at the present time, and since ray friend Mr. David Jones has placed Ins ideas of remedies to you, I trust, you wi not think it out' of place if I m turn state my ideas and the remedy in the first place, I consider there are two dominant factors at present retarding this Dominion's true piogress. (1). The low price the Dominion is obtaining for its meat exports. (2.) Want of better finance facilities for the farm industry.

And, until these two matters are remedied, we will continue to go backwards instead of forward and the true prosperity of every walk of life in the Dominion will be adversely affected seeing that the pastoral industry of New Zealand represents 18 per cent, of the total .exports. Now what is the remedy under both heads? I suggest to you it is contained in a report made by a Special Parliamentary Committee set up by the late Right Hon. Mr. .Massey shortly before he died, and which report had the approval of the Executive of the New Zealand Farmers’ Union. This report suggested regarding the meat question.—

(a) That the Meat Board should be reconstituted by the Dominion being divided into eight or nine stock districts and that.all stock owners owning over 100 sheep or the equivalent in cattle should by direct vote elect a representative for that stock owner’s particular district, so that the Board will properly function and establish selling agencies as expressly provided for by the Act. t

(b). That all freezing works in New Zealand owned by oversea companies should be given a certain time to, if possible, sell their works to the farmers and public in their respective districts, and, failing this being amicably arranged, then the oversea company could still carry on the works, but only in handling stock on owners’ account, and the particular oversea company could not purchase stock going through their own works, but would be free to buy stock and put through other works not owned by themselves.

Regarding the finance question, the committee recommended : The Long Term Mortgage system on certin defined lines that had been followed successfully in other countries without a single failure. There was to be no limit to the amount of loan up to 65 pel’ cent, of its value, and in order to establish and stabilise the position the Government was to give a limited guarantee not in any case to exceed a total of five millions pounds to be spread over the issue of the bonds at not more than 25 per cent, of any such issue, but it was considered that 12$ per cent, basis should be ample, This latter would cover raising of £40,000,000 and the former 25 pep cent would cover £20,000.000. It was considered that spread over several years £40,000,000 was required to provide adequate finance for the farmer.

Nearly every country had had to fleal adequately with both these phases since the war, and, while certain efforts have been made by the New Zealand Parliament in this direction under both heads, it is now being., clearly demonstrated it is not sufficient. The Meat Board _ was established, but it is not functioning as expressly provided and intended by the original Act. The advances to settlers with a limit of £3,50G by last session’s legislation. Both are good in their way, but totally inadequate for the actual requirements of the Dominion. The other day you had the fact desmonstrated to you that not one section of the Te Wera property in ♦he (risix.TTie district was taken up. In my opinion, it was not a question as to whether the Government had paid too much or too little for this land had prevented any settler coming forward, but the fact that the price of fat stock is. steadily dropping in the Gisborne district in common with others. Whore several years ago you could get 25s to ,39s for a fat lamb, 30s to 40s for a fat wether and £l4 to £lB for a fat hullock you can only get in Gisborne 14s to 18s for a fat lamb, 17s to 20s for a fat wether and £8 to £lO for a fat bullock. This, coupled with the fact that there is no reliable source of new finance available for farmers, is the sole and only cause that is driving people from the country to town, and I venture to say that, if this purchase is responsible for demonstrating to you and your Cabinet, the true position and you take a lesson from it and remedy the cause, the Dominion will be well-paid, even It the whole money paid for Te Wera be totally lost, which, we know, will not be the case. Mr. Jones has referred you to America to find a remedy. But look up the American records in our Parliamentary Library, and you will find that, thev have effectively dealt with the Meat Trust bv legislation stoppin" them owning stock yards, railway facilities for transport of stock and specially plrohi hi ting them having anything t 0 do with the retailing of meat and they have also provided soec'll legislation to secure advances M ’-he farmer. That, country has D-d slated the Meat Trust out of existence with the result that farms and large areas which were being Jbapdoned, and which some of the

official records showed were not worth as much as before there was a mile of railroad in America because of the low > prices -lieing paid to the farmer by the Meat Trust are now in a sound and prosperous position, no doubt reflecting back on the prosperity of the whole of the United States. . , I have before me a copy of the Journal of Commerce published m New York on the 17th of last month, which publishes Government figures and shows that the farmers are now getting up to £37 10s for a fat bullock and for a 321 b. to 421 b. lamb they get £4 6s Id to £4 15s 10d. If you look up the English liles, you will- find the farmers there are getting up to £6O to £7U for fat bullocks and £5 to £6 for a fat sheep. When it is remembered that more than half of our New Zealand meat is admittedly sold as English, it clearly- shows that somebody is rauincr off a huge profit from out meat, judging by live stock prices m England. Compare these prices with what the New Zealand farmer gets and is it any wonder that there is so much unemployment and complaints of the country being vacated ior the tC> This position must be altered and stopped and I look to you and your Government to find a practical ana immediate remedy,- and no waiting for a party of four to enjoy a holiday .in going to America when we have the records in the Parliamentary has the Meat Board done to remedy this position? Nothing except to tighten up the grip of the Trusts on the throats of the farmers of New Zealand; and who are in a position to choke them to death at any time they please The time has long since passed calling for better and more practical legislation on this head, and in mv best judgment t first thing for the Government to do is to remove its representative, Mr. David Jones ,from the Meat Board, for he is only acting as a brake on the producers’ interests, and then legislate upon the lines recommended by the Parliamentary Committee referred to previously. I will undertake to say that immediately you acin this way it will bring prosperity not only to the farming community but to the Dominion as a. whole. I would refer you to the report made last year by Mr. 11. P. Williams, a special Commissioner tor the Australian Meat Council, who made an extensive tour of England and other countries to study the meat question, in which lie summarises, the position and states that the American competition is now negligible. He refers to the dominating position of the Vestey family, who have the controlling interest in the Union Com Storage Coy. 2 Ltd., that fixes the wholesale selling prices, and ho says. “Ultimately there will be one buyer only and the grower must face lean years.” He also says that unless the primary producer and the Federal Government of Australia are prepared to immediately establish selling organisations overseas which can assure a. permanent market for um produce within the next decade our production other than in fine wools will not be able to compete. This is really what the Meat Board was established to do b.v establishing selling agencies, which have not; materialised, and T sincerely hope your Government will now act effectively in this matter, and listen to no suggestion to delay legislation so that anv Commission can go abroad. The New Zealand Parliamentary Commission’s report of about 1918 fully deals with the whole position. I consider the sheepfanners in New Zealand to-day are now all working for Vestey Bros, and their subsidiary organisations, and 1 am sure you will agree this must be remedied and stopped. As I assume you consented to the publication of ill’. Jones’ letter to you I shall be glad to know if you will consent to this letter being made public through the press. I beg to remain, Sir, Yours resnectfullv , (Sgd.) W. DOUGLAS “LYSNAR.