Maori Farmer Says Wool Prices Were Excessive

Grey River Argus, 4 September 1948, Page 5

Maori Farmer Says Wool Prices Were Excessive

P.A. WELLINGTON, Sept. 3. When the Budget debate was continued, Mr T. Omana (Govt. Eastern Maori), ■ said that many farmers thought that last season’s prices for wool were too high, and a fall in the prices was anticipated in the coming season. He hoped that the farmers’ leaders would seriously consider the proposition of a guaranteed price for wool. ' ' It was pleasing to note that the Maori ex-servicemen were continu-ing-to take advantage of the rehabilitation assistance, but it would be only a matter of time before the number of Maori men eligible for trade training would be exhausted. He hoped those centres would be retained for the further use of younger Maori trainees. RETRENCHMENT WANTED BY NATIONALIST Mr R. G. Gerard (Nat., Mid-Can-terbury) said the Budget gave no incentive to farmers in the way of taxation relief , which the Government could afford by cutting down some of its own expenditure, especially in me Prime Minister’s Department, which now had a staff of 221„ and by curtailing Ministerial and other official visits overeas. Except for the exchange question, the Budget was the same drsary, dull, and unimaginative document as was presented last year. It paid lip service only to increased production. It was time there was a change in the occupancy of the Treasury Benches. OPPOSITION VIEWS DIFFER ON EXCHANGE Mr J. KJ McAlpine (Nat., Selwyn), said that Members of the Opposition had given their personal opinions on the adjustment of the exchange rate. Ho said no one of them had attempted to speak for their Party as a whole. He had the gravest difficulty to be quite sure that the opinion he had reached would not be influenced by the fact that removal of the high exchange was a detrimental step so far as he was personally concerned.’ In considering the question, he had tried to set aside his own particular circumstances. He thought th e removal of the 25 per cent, exchange premium must inevitably react adversely on the people of New Zealand. A STOP TO INFLATION It was, when all was said and done, a question of inflation and deflation. The removal of exchange rate of 25 per cent, had! tne effect of deflating the country’s currency. Times of deflation and inflation were the two occasions on which the spending power of the working man was reduced. Two main clases who would suffer from the removal .of the exchange rate were the sheep-farmer and the manufactures. They were, he said, probably concerned with four-fifths of the total income of the country. The r°d”c H on of the exchange rate was deflation. During such a period one of two things had to be done — to reduce internal costs, or to reduce the number of men in industry. Dismissals had already occurred in the short time that had elapsed since the removal of the exchange rate. He felt the Government had not done the workers any service in altering the rate. In fact, it had done, them a disservice. CABINET DECIDED ON EXCHANGE . Mr D. W. Colemai? (Govt., Gisborne) said the decision to alter the exchange rate to par was made by Cabinet without any advice from cutside. He went on to say that the Labour Government had done more for the farmers than any other administration. Mr S. G. Holland: Why haven’t you more farmers’ seats? Mr Coleman: The farmer seems to be a peculiar kind of individual —alwavs again the Government. The debate was interrupted by the adjournment at 5.30 p.m.’ The Prime Minister, the Rt. Hon. P. Fraser, the House rose, said, in reply to Mr Holland, that he would indicate later certain work he would like to hav e finished before he left the country at. the end of the month.