The Hawera Star. MONDAY, MAY 23, 1932. FARMERS AND SECONDARY INDUSTRIES.

Hawera Star, Volume LI, 23 May 1932, Page 4

The Hawera Star.

MONDAY, MAY 23, 1932. FARMERS AND SECONDARY INDUSTRIES.

Delivered every evening by 5 o’clock in Ilawera, Manaia, Kaupokouui, Otakeho, Oeo. Pihama, Opunake, Normanby. Okaiawa, Bltham. Ngaere, Mangatoki, Kaponga, Awatuna, Te Kiri, Mahoe, Lowgarth, Slanutahi, Kakaramea, Alton, Hurleyville, Patea, Whenuakura, Waverley, Molcoia, Whakamara, Ohangai, Moromere, Fraser Rood, and Ararata.

A new note in farmers’ discussions of economic affairs was struck at the conference of the North Canterbury branch of the Farmers’ Union last week when a remit was adopted recommending the subsidy of secondary industries out of the Unemployment Board’s funds as a means of combating unemployment. It is a good thing to see farmers, or any other section of industry, capable of taking a wider view of national questions than one restricted to the boundaries of their own activities, but there is a danger, in the instance under notice, of farmers becoming entangled with the subject of protective tariffs, to their own embarrassment, for it is not a long step from subsidies to tariffs. Excessive protection in the past has been one of the causes of retarding progress in this country; it has led to a higher standard of living than the country has been able to afford' and it has been a spoke in the wheel of efficiency. At the same time it lias to be admitted that the argument which most impressed the Canterbury farmers is one that appeals to reason; it was pointed out at the southern conference that unemployment relief monies would have been better spent from the first in keeping on their feet industries which employ a large number of hands, instead of putting skilled artisans and factory hands on to road mending. It is also true that the principle of subsidising private industry out. of the -Board’s funds has already been established by the plans which enable farmers to secure .subsidies for certain classes of work on the land. -The posb tion of unemployment to-day, however, does not encourage hope that the Unemployment Board will be able to do much towards subsidising secondary industries. The Board has an income of £3;500,000, • but it has to disburse that amount among 50,000 unemployed and their dependents. While there are grounds l for endorsing the farmers’ remit urging the Board “to make a searching investigation into the possibility of assisting those [secondary] industries by way of subsidy ... to enable them either to

employ more hands or to market their goods at lower prices in order to quicken consumption,” farmers and all others who interest themselves in the economic affairs of the Dominion should take care that they do not lay themselves open to the charge that they favour the principle of protecting secondary industries’ from all outside competition. Farmers have to remember that the time is fast approaching when the Empire will be faced with the responsibility of making new and mighty decisions at Ottawa. How is New Zealand to negotiate with Great Britain and the rest of the Empire at Ottawa if her delegates go to that conference with their hands tied by commitments tO' the secondary industries? This country has as much, if not more, than any other dominion to hope for from the conference. It has always been New Zealand’s disadvantage that she is situated 12,000 miles distant from her principal market, where she has to compete on even tariff terms with foreign competitors who are only a few hours away from London. It has already been made plain to us and to other outlying parts of the Empire that we must be prepared to offer something in return for the concessions we hope to get from Great Britain. The Old Country has her own secondary industrial problems. She has skilled and unskilled workers she wants to put. back into production and she can do that only if she can find a market for their output. She has lost her predominant position in the markets of the world and she is looking to the Dominions to take a. larger share of her products. If this Dominion or any other goes to Ottawa with one hand outstretched for tariff and trading concessions and at the same time confesses that it has nothing real to offer in return, it will be sadly disillusioned in its hopes of gaining advantage. The southern farmers, in asking for subsidies, do not go all the way and ask for prohibitive tariffs, but secondarv industries in the south have already, in endorsing the request, supplied that missing link in the argument, which at once makes the question fraught with difficulties.