FEDERAL POLITICS

New Zealand Herald, Volume LXX, Issue 21576, 22 August 1933, Page 8

FEDERAL POLITICS

In the Federal Parliament events are shaping toward the Country Party, which almost holds the balance of power, forcing the hand of the Government either to a modification of the tariffs and taxation or to a dissolution. It seems to be assumed that the withdrawal of the Country Party's support would not be compensated from the Labour Party, even though the main issue may be high protection, to which it subscribes. To be remembered, however, is the fact that ever since members of Parliament have been paid, they have usually shown a strong disinclination to cutting short their normal term of office. This tendency may help to prolong the dispute. In its fundamentals the rift between the Country Party and the Government is common to most countries. Everywhere agriculture is suffering the full severity of the economic blast. Primary producers must accept the terms fixed in the world's unprotected mai'kets with surpluses and under consumption limiting demand and lowering prices, and the quota system menacing the future. They turn to help themselves by reducing the cost of production, but encounter the burden of high protection for manufacture, and thus political Reactions are inevitable. But in Australia in particular, where high tariffs have existed so long as to be accepted by a large body of the people as a permanent condition of industry, where, under their shelter, large factory enterprise has developed, where, with urban populations out of proportion to the rural, there is a very powerful vote favouring the continuance of the system,

the manufacturing interests boldly challenge the farming demand for easement. The president of the New South Wales Chamber of Manufactures declared the other day that "our factories alone can save Australia." He spoke of the burden imposed upon the people to aid the primary producers —the bonus to exports in the form of exchange amounting to £22,000,000 a year, the wheat bounty of £2,250,000, the interest 011 loans raised foi luial development, together with the losses of capital on the same account representing £40,000,000 annually, the reduction of freights and the remissions of taxation. Just as vigorous are spokesmen for the farming community who show that more than 90 per cent of the overseas obligations must be paid by primary exports. Thus the controversy rages and in the political sphere it is taking clear-cut form.