CAPITAL RATE

Northern Advocate, 21 April 1933, Page 6

CAPITAL RATE

SWAMP SETTLERS’ PLIGHT SUSPENSION URGED. TILL STABLE PRICES RETURN. (Special to "Northern Advocate.”) KAITAIA, This Day. “The Government is concerned at the problems facing farmers, and, as far as inability to meet obligations goes, the plight of Kaitaia farmers is unfortunately not unique.’ ’ This statement was made at Kaitaia yesterday by the Minister of the Hon. E. A. Ransom, when a deputation of Crown settlers farming on the Kaitaia swamp asked that the whole of the capital rate be suspended until stable price levels returned.

A resolution urging assistance was submitted on behalf of the ratepayers by Mr E. R. Bird, avlio said it meant the suspending of the charges- until they kncAv where they Avere. They could not pay, and so made the request. It had been said that farmers on the swamp should be able to pay something, and although the factory Avas paying 6d, they had to live. Ben. zine Avas necessary to run the milking machines, and other things Avere needed to keep the farm going.

The system of assigning future earnings 'was unfortunate, as many did not have the right to say how their returns should be distributed. The' point was now being reached where human standards were being sacrificed, and many had nothing with which to face the winter. Summonses for outstanding drainage rates were now being received • by people who had never before been summonsed. They could not pay, and the only logical thing was to file in bankruptcy.

Pushed To Extremes.

The effect that the difficulties were having on‘the morale of the farmers was even more important than the money position, as the position "was breeding disrespect for the law. If the ‘men were going to be swamped with, summonses, that respect was going to lessen further, with, possibly, a dangerous reaction. As farmers, they had not failed, for they were producing abundantly, but they were being overwhelmed by other factors which they could not control. ■ When purchasing the land, said Mr • T. H. Kenny, the department had not taken, into account the drainage rate, which added nearly £lO an acre to the price. Shelving the rate would not . get the men over the difficulty, even with butterfat at a shilling a pound. He thought the drainage rate areas should be wiped off, and no further charge put on the land until conditions improved. That this was the most important of local questions to be considered by Parliament, was the opinion of Mr 11. M. RuShworth, M.P. The drainage work, has benefited the whole district, he‘ said, and a - betterment charge would have been more equitable. Dis- / tress and worry, which were almost unendurable, were being caused by the rate, and he felt that an attempt to get the rate would fail. Drastic Request. Even though Mr Ransom said he realised the position, he was, however, surprised at -the drastic request. No one could foretell when conditions would be normal again, but he was optimistic that it would not be long before there Avould be an improvement.

He disliked the issuing o.f sum- ‘ mouses, but this was the only way in which the Crown’s interests could be protected, as arrears could not be recovered after two years. The Government’s greatest responsibility was to see that farmers did not fail. They had to consider whether they could differentiate between capital and maintenance charges. He was, however, prepared to go into the question of arrears, and sec what could be arranged. Farmers should not contemplate bankruptcy, he thought, but should dig their toes in, and lie promised thal the Government -would do all possible to assist them. No trier, he assured them, would be turned off his holding. The drift of sand to the west was referred to, and it was stated that it was menacing the western end of the swamp, and at one point had travelled a mile and a half from the beach. The sand could be checked, but if it got on to the flat land, it would travel very quickly. This menace had been observed right along the west coast by MiRansom, and he would see if arrangements could be made to use relief labour in the planting of marram grass and lupins.