Are The Farmers Subsidised?

Manawatu Times, Volume LIV, Issue 7241, 22 August 1933, Page 7

Are The Farmers Subsidised ?

Mr Dynes Fulton Won’t Admit It VERBAL TILT BEFORE TARIFF COMMISSION. For Press Association. AUCKLAND, Last Night. The statement presented by Mr. W. Dynes Fulton, acting-chairman of the New Zealand Produce Board, to the Tariff Commission to-day, was followed by lengthy questioning of Mr. Fulton by Mr. A. E. Mander, representative of the New Zealand Manufacturers’ Federation. The duel was chiefly notable for Mr. Man dor’s persistent efforts to obtain an admission from Mr. Fulton that tho farmers of tlic Dominion are heavily subsidised and Mr. Fulton’s refusal to admit this. Mr. Mander quoted figures to show that one New Zealand family consumed as much dairy produce as 1G English, families and asked Mr. Fulton to agree that New Zealanders were 1G times as good customers of the farmers.

Mr. Fulton did not agree and said that those who might be put out of work in New Zealand by the abolition of tariffs could find employment on farms.

Mr. Fulton agreed that New Zealand had been tardy in honouring the Ottawa agreement. Mr. Mander sa’id tariff reductions had been made immediately after the Dominion delegation returned from Ottawa.

Mr. Mander added that the Agricultural Department granted the Railways Board £GOOO for free railage of lime, £120,000 for fertilisers and £154,000 for superphosphates. Mr. Fulton said he did not recognise these as subsidies to farmers. Motor carriers would get the business if tho railways did not. It did not matter who paid, as, after all, tho whole country was getting tho benefit. Professor Murphy: I)o you say no assistance by subsidy or otherwise is given the farmers? Mr. Fulton: I say so. Professor Murphy: Do you really? It is only fair to say that is quite contrary to fact. Tho Farmers’ Union admits the existence of material subsidies and excuses this by saying it had to have a dip in the lucky bag when everyone else was having one. After further discussion Professor Murphy observed: “When is a subsidy not a subsidy? The answer is when a farmer gets it, it is not a subsidy; when anyone else gets it, is a subsidy.” Asked by Mr. Mander if ho agreed that the high exchange put an extra £5,000,000 a year into the pockets of 40,000 exporting farmers, "Mr.' Fulton said he had not seen the figures. No doubt tho'farmer benefited by tho increased rato of exchange, but there were others who benefited. Tho whole community had benefited bccauso tho farmers had been enabled to retain the workers. It was a measure for tho benefit of the 'Dominion as 'a Whole;’' Mr. Mander: You ivould abolish all duties against the United Kingdom? Mr. Fulton: No, I thought I had made it quite clear that duties should be abolished on all imported material that cannot bo successfully manufactured in New Zealand without protection. Mr. Mander: That means all of them. Mr. Fulton produced figures relating to the income and expenditure of a number of individual farmers in 192829 and 1932-33. These showed an average fall of 50 per cent, in gross receipts, despite much greater production and the benefit of tlio higher exchange from January last.