EUROPE’S POLICY

Hauraki Plains Gazette, Volume 47, Issue 2669, 13 September 1937, Page 6

EUROPE’S POLICY

AGRICULTURE FUTURE EFFECT ON MIGRATION POSITION OF NEW ZEALAND. 'j'HE following interesting article is taken from the Mercantile Gazette of New Zealand : “ Since the close of the war European countries have pursued a policy of self-sufficiency, or economic nationalism. It would, perhaps, be more correct,, to say that they were driven to it, and two factors have been responsible for this urge. The first was that when the war ended all Europe was prostrate and impoverished and importing on the scale that existed before the war was out of the question. They were thus obliged to provide food from their own resources. To prevent imports coming into the country quotas were established, ’while many countries subsidised exports. The gold problem was also a factor, but this was met by abandoning the gold standard. Another, and as important as the first mentioned above, is rearmament, which was started by the Dictators of Germany and Italy. In Germany it was stated by General Goebbels that “ battleships were better than butter.” The Germans and Italians are being rationed and the farmers in both countries have to produce according to dictation. Everything has to give way to rearmament. And this is spreading to the United Kingdom, where the problem of self sufficiency is being gradually put into effect. The beef subsidy and the milk subsidy are instances of this. The beef problem is not of major importance to us for we export very little beef, but the milk subsidy promises to raise difficulties for Australia and New Zealand. The Hon. Walter Nash visited London in an endeavour to induce the British Government to afford New Zealand a free and expanding inarket for her primary products, and on her part New Zealand would spend the whole of the money derived from the sale of such produce less wnat was required for the debt service, in the purchase of British manufactures. Of

course nothing came of this proposi. tion, and it is quite possible that Britain may impose a levy subsidy on imported butter. Mr. Thomas Baxter, the chairman of the British Milk Marketing Board, in a recent address to farmers hinted that a levy subsidy may be in the legislative measures of next session. “Not So Hopeful.”

“ Agricultural self-sufficiency has been rendered feasible through the advance in agricultural science and technique, and to improvement in machinery. For example a Scotch agricultural engineer has perfected a plough which practically cuts the poorest soil so that it becomes fine tilth, which, with the use of fertiliser could be made to produce crops. Another invention enables green grass to be stored for winter feed. The question for us to consider is as to what effect this trend toward agricultural self-sufficiency will have upon New Zealand. “We are concerned with two industries—sheep raising and dairying. It does not seem possible that sheep farming will meet with any difficulties. No Continental country gives much attention to sheep, consequently Europe will always want wool and sheep skins. Mutton and lamb are not consumed to any extent, not even in the United Kingdom, but beef and pig products find favour. All European countries engage in dairying, some more than others, and with the new policy of economic nationalism, the outlook for our dairy industry is posed throughout . the production will always be able to export a fairly substantial quantity of butter and cheese, but the monetary realisation may not be to our liking. More People For Dominion. “ What we wish, to imply is that the trend of prices for dairy produce will be downward rather than upwards. There will be fluctuations, but the average price over a season will be low. Last year New Zealand butter in London averaged 90s to 100 s

per cwt., and because of this low average the consumption was enormous. To maintain this heavy consumption the price would have to be kept low. There is not much fear of any slackening in consumption at present because of the wave of prosperity that is surging throughout the

United Kingdom. The position has to be faced, and the question arises as to what this country can do to meet the situation. We could, for example, reduce production costs, and although that seems impossible at tne moment, it must come. Another effort could be made to increase the domestic consumption, but forcing, up and fixing prices at above London parity will not stimulate consumption. We could also make an effort to increase the number of consumers by immigration. This presents another problem, but one that merits close attention. A good many people are obsessed with the idea that immigrants must be settled on the land. That would involve the taxpayers of this country in great expense, and the result would be indifferent if not totally disappointing. The Joseph Chamberlain idea of “ three acres and a cow,” would scarcely find favour in these days of 40-hour work week and motor-cars. The best immigrants, as someone has observed, are the babies bom in this country. They are consumers from birth, but the economic conditions do not favour large families and baby bonuses is too much like State baby farming, besides there is the expense to be considered. There is another class of desirable immigrants and those are the Imperial Service pensioners. They would be no expense to the country, and having an assured income they would be good spenders. But, as one visitor observed, New Zealand is the dearest place in the world and the taxation the highest in the British Empire. We want more people in the country, but in endeavouring to give political emphasis to a socialistic theses we have run into an economic cul de sac.”