THE DAIRY COMMISSION

New Zealand Herald, Volume LXXI, Issue 21938, 23 October 1934, Page 13

THE DAIRY COMMISSION

Sir,—JTrom a practical viewpoint the report of the Dairy Commission is valueless. It will not immediately benefit the farmer; it must in the long run tend to increase costs of production: it gives' no guarantee of New Zealand preference in the market of Great Britain; it cannot solve our great internal problem. Lower rates of interest are promised, but the. accumulation of funds for investment in New Zealand must force down the rate of interest sooner or later. The rehabilitation of industry is to be in the national interest, but the farmer is to carry the monkey. The only ones who will pront will be the investors—whose return is to be guaranteed —and those who will get soft jobs as inspectors. The farmer s other costs, which aro equally aa important as his interest charges, must rise, thus more than offsetting any benefits accruing from cheap credit. Unless the Government is "prepared to reduce and stabilise all the farmer s costs, his receipts must lag behind his costs. Thus, pseudo economic planning will not work in the New Zealand dairy industry. Cheap credit and rehabilitated industry will increase production. Our economic recovery depends on the releasement of purchasing power not offset by extra production and upon a greater preference in the market of Great Britain, The commission has made no effort to fulfil the former condition and is prepared to plunge into a dangerous experiment without any guarantee of the latter. Increased specialisation of the dairy industry must lead Now Zealand further into the bog and the New Zealand cockie further into debt. Our production can be increased only with greatly added expense in the long run, but Australia, Argentina, Canada and _ Russia are younger in the butter industry and consequently can increase production less expensively than we can. Considering this in the light of the world's return to intensive economic nationalism, and Major Elliot's belief in quotas, I wonder at the imagination of the commission. It is the butter-makers and factory managers of New Zealand —not the cow-cockies —who need the education; and tho Government —not the cockic —should pay for it. Te Puke. Wm. L. Barker.