DAIRY INDUSTRY

Manawatu Standard, Volume LIV, Issue 284, 29 October 1934, Page 6

DAIRY INDUSTRY

MEETING'AT STRATFORD.

PLAN FOR REPAYABLE CREDIT.

Per Press Association. STRATFORD, Oct. 29.

A large meeting of farmers from all parts of Taranaki, held under the auspices of the Farmers’ Union, took place at Stratford. Mr W. J. Poison, M.P., president of the union, in response to an invitation, explained the Dairy Bill. He urged the necessity for a reorganisation of the industry to meet the changed conditions, and stated that the proposals did not go far * enough. The desperate conditions in the industry demanded immediate relief. He urged the issue of credit in the form of repayable advances through factories to suppliers. The Commission’s report suggested that, with reorganisation, the industry might carry on at lOd. Assuming this to be correct the average price for many years had been well oyer one shilling, while the present price level represented Bd. If credit were issued to make a payment of lOd and prices subsequently rose over such a figure, the advance (which would be interest free because credit would cost only printing the necessary notes) would be gradually repaid. Mr Poison proposed that the Government utilise the Reserve Bank for the purpose of the credit to be paid out to suppliers through 'the factories. As the industry would be completely controlled under the new scheme the Government would automatically recoup itself when the price level rose above lOd or whatever was fixed as the payable price. A suggestion that the plan meant inflation did not frighten him. The Reserve Bank’s issue of notes far beyond the trading banks’ figures had not created any inflationary trouble, because the solid credit of the btate was behind it. The present plan would have the same backing and the same result. Mr Poison emphasised that it was not a subsidy from the Consolidated Fund but an advance. Along and heated discussion followed, severe attacks being made on the Government by sections of the meeting during which a resolution was moved calling on the Government to resign. After’Mr Poison had replied strongly defending the Government and supporting the provisions of the Bill, the motion lapsed for ■want of a seconder. A resolution was carried that, while agreeing that reorganisation of the industry is necessary to meet changed conditions, this meeting, representative of the whole of Taranaki, conveys to the Government its disappointment that the proposed Bill contains no definite plan for giving financial relief to enable farmers to tide over' the present crisis, which is the crux of the whole question.” Mr Poison’s plan for a repayable advance was favoured.