THE FARMER’S INCOME

Hawera Star, Volume LIV, 29 March 1935, Page 9

THE FARMER’S INCOME

LABOUR PARTY’S PROPOSALS SYSTEM OF PRICE GUARANTEES RESTORATION OF EQUITIES. (By lewzraFfc--f’reaa Association.} WELLINGTON, March 28. Speaking on the third reading of the Rural Mortgagors Bill in the House of Representatives to-night Mr M. J. Savage (Leader of the Opposition) said that owing to the period off depression for which neither the mortgagee nor the mortgagor was responsible some of the parties to mortgage contracts were to be unnecessarily sacrificed. The wording of the Bill had been altered but the effect of it would be substantially the same. Anything short of the restoration of equities was hound to bristle with difficulties and anomalies, and the administration or the law would be costly and difficult. There was no suggestion in the Bill to prevent a repetition of the troubles that were facing the farmer to-day. Only by guaranteed prices and correct forms of taxation could a repetition of the trouble be avoided. Even' if the Government’s proposals did give relief, which they would not, the problem in front of Parliament was to rehabilitate the farmer of average capacity working under average conditions over a period of years, which could' ho said to produce a fair average result. That was the main principle upon which, the • Valuation Department worked at present, and it was difficult to undeistand why the Minister should wish to depart from it. unless it. was to postpone action until after the general election.

PRODUCTION DOUBLED. The farmer had more than doubled his production during the ten years ended in 1933. In 1924 the collective efforts of the dairy farmers of New Zealand {resulted in the export of 1,269,405 cwt of butter, while in 1933 the amount exported had increased to 2,635,274 cwt, and yet 50 per cent, of them were practically bankrupt. The reason was that while they had more than doubled production they received little or no increase in money returns for the total amount of butter exported. In 1924 the farmers received £11,641,688 r and in 1933 'for mere than double the quantity they received £11,648,699, an increase of only £7031. If they based the valuation d: farm securities, as they always had done, upon the average of the balue of production over a period of past years, say eight or ten. they could begin at once to“rehabilitate the farmer who was an difficulty, taking advantage of the low price of money. If on the other hand they based the rehabilitation of the farmer on the average of the value oi production over the next five years calling which the farmer would be subjectecfto budgetary conditions, the policy of rehabilitation would he delayed and the farmer humiliated, and at the end of the period the price of money might be less favourable than at present.

RATIO OF INCOME. Unless something was done to increase the farmer’s money income in ratio with any increase in his production, the budgetary period under supervision, even if it resulted in a further increase in production, could not have any other effect than that his , money income would remain about the same. There was only one foundation upon which they could build, and that was the capacity of the average farmer to produce under normal conditions. In that respect the farmer liadi made good and the responsibility for dealing with the money side of .the transaction rested with the Government. . The Government, continued Mr Savage. should set itself to the task of restoring equities in land and homes by immediately promoting legislation authorising the readjustment o>c moitgages and farm costs on the basis of the average prices received for primary produce during the past seven or ten years and for that purpose district valuation boards and a land couxt o appeal should be provided m order to arrive at the valuation upon which to act Tit that were done the average fanner would he able to meet his obligations up to the normal average oF production and prices during that period. Anything less than that was. unjust and unnecessary. ■ “When the world returns to sanity,’ concluded Mr Savage, “the money problem will be solved and the people who have survived the man-made depression will be able to pay tlieir debts, K in tbe meantime if the Government nuvsues the poliev outlined m the Bill thousands of New Zealand producers will have been sacrificed.