ECONOMIC STRESS

Gisborne Times, Volume LXXIII, Issue 11837, 19 January 1933, Page 7

ECONOMIC STRESS

SCHEMES TO HELP NEW ZEALAND. YM&aOUS SOLUTIONS OFFERED. CONFERENCE OF FARMERS (Press, Association.' WELLINGTON, Jail. IS. Sclfembs "towards the. solution of the .couixtryfs difficulties .. were put before the meeting of primary producers convened by the Farmers’ Union, yesterday, Mr. C. A. Wilkinson, M.P., (Egmont) expounded bis scheme, already - published, and Mr. W. lL Fletcher (Wairoa) outlined remedial measures whiclf ■•be thought ought to be taken. , “It is imperatively necessary that j most drastic steps should be taken \o relieve what is rapidly becoming au intolerable-, position,” said Mr. Wilkinson. “I am of opinion that that nothing short of almost revolutionary measures will do what is required.” Interest, rent,- and taxation under to-day’s prices constituted a burden which made farming , unprofitable and in the end would tend to general decay, loss of production, Stag, - ; nation, and default. His proposal was: 1. That all .farm lands in New Zealand' should he entirely freed from mortgage .liability, both of capital and interest! 2. That from henceforth no mortgage liability should he allowed on farm lands, which shall be entirely free from any such encumbrance. ”3. That ill view of the freeing of land from mortgage debt, all farm lands over and f above what is considered a reasonable area should be resumed by the State without payment for further settlement purposes, and thus resumed by the Crown should . be acquired on a basis of the reduction made by abolishing the mortgage debt on the land. “The main feature of my scheme is that I, propose to bring the money values .into- line-with the production, values;”/ 'Alr.-if'letelier stated. Putting forward his scheme, Air Fletcher stated, that any form of palliative at .the present time, however desirable, would not permanently restore all round confidence. He said that most of the valuations of farm lands have been based on the speculative value paid for similar lin'd in,; each locality, and not upon the productive value. He suggested a revaluation of farm lands, the issue of bonds to pay ~dff the mortgagee, and the setting up of a. ; realisation trust board, which would arrange all ad. justments, issue valuation forms, collect the sales tax, attend interest payments and redeem from time to time. The board should be entirely independent of political control.. Air.' It. S. Chadwick (Hawke s Bay)'seconded . Air. Alell sop’s motion that there -should be ah immediate substantial reduction in our existing tariff,, rates, particularly witli the : Mother Country and the rest of the . Empire” and that the policy; of the Government /should be to- effect gx-adual periodic' redactions iii these rates until Empire free trade was

realised. : - rW •->' . ... •• - Mr.T Mclntosh. (Canterbury) said New Zealand was under no obligation to take from Great Britain wTiafc she; could ..manufacture herself. A substantial . reduction in tariffs would be a direct bit at local industries. . r ....

Mr.. James Degg said they had to get back to the point where every industry could stand on its own feet. There was no reason why there should not- be a substantial tariff reduction gradually.. The duties on British goods should be reduced until there was free trade with Great. Britain. . ,

After hearing the mover and seconder the meeting passed a motion that the Government be urged to bring interest rates in New Zea. land down in conformity with the reductions in other parts of the world.

Proposing the resolution, Air. .H. Seifert quoted returns showing that interest formed an oppressive proportion of farming costs. Seconding the motion, Air. A. E. Harding (DargaviUc) said that a substantial reduction in interest would give more immediate relief than any other proposals being considered by the meeting. New Zealand had about the highest rate in the world, so there was plenty of room lor a reduction in this country . “In the hands of the Government is power which could give relief to a very great extent from the trouble we are in.” Air. Harding said. “A reduction would benefit every section of people except those with money on fixed deposit.”

Proposing that the land tax be abolished and that income tax be substituted for it, Air W. B. son asserted that the principle of class taxation sucli as . the land tax was wrong. The land tax imposed a 'handicap on anyone trying to earn a living on the land and the result of the imposition of the spec-land-was to hit at those who were ial tax on those who took up the making the best use of the country. The motion was carried.

The -meeting also passed a motion that rating relief, either by way of bonus qr by way of petrol taxation funds, should be given to all rural lands as a, preliminary step towards the complete derating of farm lands for roading purposes. “The Government should set an example to the people,” said Air. J. D. Hall, in moving a motion that .the Government expenditure, which had not been reduced during the last tliree years, be now' definitely brought down to an amount which the Dominions can afford to pay. The motion was carried unanimously. ,

Other proposals were referred to the executive for consideration.