PRICE OF FERTILISERS.

New Zealand Herald, Volume LXIV, Issue 19780, 29 October 1927, Page 13

PRICE OF FERTILISERS.

HIGHER IN SOUTH ISLAND. ALLEGATIONS OF MONOPOLY. TRADE WAR IN THE NORTH. [BY TELEGRAPH. PRESS ASSOCIATION.] WELLINGTON, Friday. The price of fertilisers was discussed in the House to-day during the debate on the Imprest Supply Bill. Mr. J. R. Hamilton (Awarua) drew attention to the fact that South Island farmers were penalised to the extent of 30s a ton on the carriage of phosphate fertilisers. Mr. D. Jones (Ellesmere) said South Island money had been subscribed largely for the erection of crushing works in Auckland. It was understood works would be established in the south, but this had not been done. Mr. Jones believed the difficulty in the south was due to an arrangament between northern works and a private firm in the south, which he believed was something like a breach of the Commercial Trusts Act. So far as he could see, said Mr. Jones, the remedy was for the southern farmers to import fertilisers from overseas and break the monopoly that had arisen. The trouble, he believed, was due in some measure to the fact that the northern distributors refusfed to regard co-operative dairy companies as agents. Manufacture by State. Mr. W. L. Martin (Rag!ao>) said he hoped the Minister would ta>Le notice of what had been stated. If South Island farmers intended to act for themselves they would have to follow the lead of the farmers in the north. The Te Papa works bad practically passed out of the hands of the farmers to the big merchant lirrns of Auckland. Mr. E. P. Lee (Oamaru) asked if the Government considered it fair or justifiable that southern farmers should have to pay 30s a tons more for fertilisers made from rock phosphate. If not, then the Government should, after inquiry, take steps to put southern farmers on a better footing as compared with those in the north, and protect them from excessive charges. A farmer in his district had told him that English or oversea fertilisers could be imported at £1 a ton less than the New Zealand fertiliser cost If the companies in the north were so operating as to make southerners pay a higher price than the northerners enjoyed then the Government might justifiably step in and manufacture fertilisers. Minister Criticises Position.

The Postmaster-Generai, Hon. W. Nosworthy, said the position of farmers in the South Island regarding the supply of fertiliser- w:»a most unsat.istar.t-'rv The raw material for these fertilisers came from Nauru and Ocean Islands when it was landed in New Zealand it was really Dominion property. Then it fell into private hands, and because there was a trade war between three firms in the North Island farmers there were getting their fertilisers 303 a ton cheaper than farmers in the South Island. In the South Tsiand there was only one firm manufacturing fertilisers, and having a monoply it was making farmers "pay through the nose." He suggested the remedy for this was to get farmers in the South Island to combine and erect works of their own at Timaru, from which fertilisers could be most conveniently distributed. The Leader of the Opposition, Mr. H. E. Holland, said there could be no stronger condemnation of the inactivity of the Government than the speech of the Postmaster General. It was a clear admission that gambling in fertilisers was going on in the North Island for which farmers in the South Island had to pav. The Minister of Agriculture, Hon. O. J. Hawken. said merchants could only handle fertilisers at certain overhead charges. If farmers wanted to get rid of these charges they must combine among themselves. The Government could not interfere, because none of the experts could tell him whether fertilisers were too cheap in the North Island or too clear in the South Island.

Inquiries by Government. The Prime Minister, Mr. Coates, said a little over 12 months ago a very important conference was held and the Board of Trade reported on the whole question. A very great effort was made to bring down the cost of superphosphates and fertilisers, but the result was very disappointing, and then the war to cut prices started in the north. He was unable to say whether the parties to the warfare were carrying on at a loss, but he hoped the war would continue. The Prime Minister said there was no chance of the Government being able to handle the fertiliser business. It had been suggested that the Government should use the "big stick ' to the manufacturers in respect of the supply of the phosphate rock. The Government must have figures regarding the costs of manufacture that it could stand by and its investigations in that connection were being carried on steadilv and persistently. When the Government had all the facts in its possession it would be in a position to deal with the whole question of the supply of fertilisers. LOANS FOR FARMERS. DISCUSSION ON THE BILL. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Friday. The discussion in Committee on the Rural Intermediate Credit Bill was continued in the House early this morning. When discussion on the short title commenced, Air. M. J. Savage (Auckland West) said it had been stated by Ministers that the British money lender did not view sympathetically any proposal io borrow money . for the use of settlers. He wanted to know why this was so. The Prime Minister, Mr. Coates, said it had been indicated to him very nicely that the British money lenders preferred landing money in directions which would lead to British development. That was why he preferred to issue bonds rather than raise loans. At 1.40 a.m. the short title ot the bill was agreed to, and the House adjourned.