Primary Producer Must Be Given Assistance

Manawatu Times, Volume LIV, Issue 6628, 15 August 1931, Page 10

Primary Producer Must Be Given Assistance

IT NEW ZEALAND IS TO RECOVER A straight-out programme which would sweep away the restrictions of the Arbitration Court, reduco interest rates and provide the farmer with some chance of rehabilitation, by the removal of the extraordinarily high charges causod by land tax and high rates, is necessary to lift Now Zoaland from her present depression, is the opinion of Mr. W. J. Poison, M.P. Discussing the national situation, Mr. Poison expressed the opinion that several avenues of economy and reduction in expenditure had not been investigated as they should have beeu before the desperate step of increasing taxation was taken.

Mr. Poison expressed the opinion that the Prime Minister (Rt. Hon. G. W, Forbes) had done pretty well with the Budget, but there were some things in it to which he objected—primage and increased duty, for instance. Taxation meant increased costs at a time when we were fighting to bring costs. down. “The only hope is to reduce costs, so that in spite of the low prices of primary products the world over, through over-production, we will still be i able to produce in competition to euch an extent as will make up by the increase in volume for the decrease in price,” Mr. Poison went on.

“This country depends on primary production, and her only hope for recovery is so to stimulate primary production that the balance of values, of exports over imports, will be restored. For that Teason I regret that Mi - . Forbes has increased taxation.

“I think that he might have obtained relief by a drastic cut in the education vote. I hold the view that children are being sent to school too young, and that the secondary education that the State supplies to so many pupils should be paid for by those who wish to give their children higher education, except in the cases of boys and girls who show special promise and would be suitable for State expenditure." Interest rates also should be brought down. Certainly the banks and the Government had given the lead, but our internal and external loans required adjustment. His suggestion was that tHe Copeland plan be adopted in New Zealand. This step would have to oe taken next year, he felt, because New Zealand would again be faced with a deficit, without reserves to bridge the gap. The sum of £117,000,000 was owed in internal loans, and £156,000,000 to the Old Country.

He had suggested that the position should be examined, with a view to a readjustment of tariffs, to assure the Old Country of a big increase in our trade with her. If it could be said to Great Britain that a readjustment of tariffs would be made that would involve a 50 per cent, increase in trade with her if she would take caTe of our loan renewals and conversion of our higher-costing loans by guaranteeing them, he folt it would mean a great reduction of our overseas interest.

“I believe such an arrangement would be practicable, in view of the strong move at present operating for preferential treatment within the Empire," said Mr. Poison.

Bather than turn to the desperate measure of increasing taxation, every plan for economy and reduction in expenditure should be investigated. These points that I have mentioned aTe some that have not been sufficiently investigated. While I think that Mr. Forbes has shown a great deal of courage in going as far as he has gone, I would have been better pleased, personally, if he had gone the whole way. I quite admit that the fanner has been as extravagant as any other section of the community, and in that sense has only himself to blame for his present troubles, but that does not affect the position at the moment. The fate of tho Dominion depends on the recovery of the primary producer, and, whether he deserves it or not, he must be assisted.”