SHEEPOWNERS' YEAR

New Zealand Herald, Volume LXXV, Issue 23103, 30 July 1938, Page 17

SHEEPOWNERS' YEAR

SEASON REVIEWED [DOMINION FEDERATION address by president EFFECT OF LABOUR'S POLICY {TENDENCY TO STATE CONTROL In his address at the annual meeting of the New Zealand Sheepowners' federation, the president, Mr. 11. D. Iceland, said: We have experienced another year of administration by the Government of the policy laid down by it on assum lug office in 1935, and 1 am more than ever convinced that the spending polic.v jjow being followed must ultimately prove to be unsound from an economic point of view, if we take into account the taxpaying capacity of the community over an average of years, yet we find our Government, through legislation, extending its programme to an extent which it would appear must in the ultimate issue prove unworkable. As mentioned in the report, the State taxation levied by the State, that is, State taxes for last year, J937-3S, is the enormous sum of £36,560,000 as against £17,832,000 for jhe year 1928-29, the year which previously set the Dominion's record value <jf production of £126,600,000. Last year a further production record was established of £136,100.000, but it will be noted, when comparing the valuo of production of the two peak years I have mentioned, that with en increase in value produced of approximately £10,000.000, as compared fcith the previous, peak year, the total taxation has increased bj' more than £19,000,000, an amount £9,000,000 greater than the increase in production jralue. Cost to Dominion Should the legislation proposed for Jhis session by the Government bo placed on the Statute Book, the cost Jo the Dominion for its social services be proportionately increased.

The estimated cost to the Dominion for pensions of various kinds in 1937-38 Is approximately 6 3 /* millions, while estimates of the Government's social service expenditure, which covers health, mental hospital, education, pensions, unemployment fund and •mutual provident societies, have infcreased from £12,638,000 in the year 1935-36 to £17,360,000 for the year 1937-38. There are substantial increases Sn tho amounts expended under each of the heads mentioned, the outstanding one being that oT pensions, which has increased by three million pounds fcince 1935-36. I'mention these figures in the hope that they will bring home to you the possible difficulties which may have to be faced in tho near future, should the tendency to increase expenditure of the people's money on social services Jie continued. Last year's unemployment tax realised approximately and a-quarter million pounds, and I am afraid the provision of employment at high rates of pay from this fund, irrespective, In many cases, of value given in return, will undermine the self-reliance of our people and still further encourage dependence on the Government to provide from the pocket of the taxpayer a comfortable living for all who fcnay claim it, whether or not that living has been honestly earned.

Hardship on Taxpayers I am afraid the present policy is |>utting unemployment at a premium fcmd thrift at a discount, and in the fevent- of a sudden drop in values of fexports on our • overseas markets, it Jcould appear that the present scale t>f expenditure can only be maintained by imposing an increasing ratio of hardship on taxpayers generally, as a fesult of efforts to maintain receipts through taxation at a level impossible for the general taxpayer to find under Average conditions of trade within the dominion.

With respect to industry generally, fhe present position is obscure. One section strives to keep the wheels turning and the coins passing, so that men >nd women may eat and live until tomorrow; others strive to obtain mastery »f these means of production; others |o retain that mastery to themselves; fcnd another section again to share that fnastery, while unfortunately it would Appear that an increasing number are fcontent to enjoy the fruits of the labour bf others. In short, to all sections T Jiave mentioned, things generally appear to be unstable, uncertain and uneasy. (Stability has become a legend fend security a myth.) It would appear that unless we are frery careful, we may suffer severely from a tyranny of State benevolence, fast the point of ability of the individual taxpayer to maintain. I believe, with Macauley, that our fillers will best promote the improvement of the people by strictly confining themselves to their own legititaate duties, by leaving capital to Sta most lucrative course, commodities ifcheir natural reward, idleness and folly %heir natural punishment, by maintaining peace, defending property and by fcbserving strict economy in every department of the State. Let the Government do this, and the people will fosuredly do the rest. Sta,te Control I am, and 1 know you all are. deeply fconcerned with respect to the apparent trend toward increased dependence on She State with its accompanying bureaucratic control, and which, if tarried to its logical conclusion, must result in loss of individual liberty of faction, which has for hundreds of years been one of the dearest rights of British people. I mean that individual liberty to choose one's own profession, to hold opinions and to speak without fear, to earn and keep- a home safe from intrusion, to develop ;tltd extend one s energies and natural gilts, to rear our families in security and free from interference, to earn, spend or save, with & view to meeting possible hardships in later life unforseen in youth; but to-day it would appear that an increas- | Wg proportion of the community are Prepared to exalt the power of the tentral government and to limit the JJRhts and liberties of the individual. ' "he ultimate result, although possibly ®ot realised by many people at tho commencement, must necessarily he - fegimcntation under some form of dictatorship or oligarchy (whether Gov- ■- eril| ivntal or sectional), and in order | survive under those conditions, our I people must be prepared to give up S r °' ( ' ' < ' ea ' °' individual liberty. || .J cannot believe that the people of country would willingly surrender I principle so precious as this and for r~j c h our forefathers were prepared *&d did in many cases lay down their •ffes.

There appears to be a tendency today to unduly exalt the powers of the central government while ignoring that the foundation of any government must always be the individual effort of the citizens in the community. The suggestion is made that if the community will give up its individual rights to the central government, that great profit to certain sections will result, cither by the exploitation of some other section or by liberating and exploiting the national resources to their limit. This suggestion carries with it, however, the inference that the economic advantage of one section of the community can be promoted bv the destruction (in whole or part) of some other section or sections. Once the State is allowed to become the masters of the people, instead of their servant, from then onward there can be nothing but curtailment of individual liberty, gradual encroachment of entire bureaucratic control, and a subversion of the rights of the people to express themselves either in word or in action, through their lives, along lines which they consider best suited to their individual circumstances. Reformers through history appear always to have had as their objective tlio equalising of conditions of life to the whole of the community; take the cases of the Watt Tyler rebellion in England, and the French Revolution, the slogan of which was "Liberty, Equality and Fraternity." We know the results, history repeated itself once more, and to-day there are probably just as many in need in France as elsewhere, broadly speaking. The facts are that in the effort to attain Equality, Liberty must necessarily be restricted and Fraternity, as botween both individuals and groups, is destroyed. I trust the day is far distant when the community generally in New Zealand is no longer prepared to work out its own destiny, free of subsidy either from Government or any other source, and I feel assured that if the issue is put to the community generally, and particularly members engaged in our industry, that the result would show an overwhelming majority who would prefer individual and independent activity and stand or fall by the result of individual effort. Branches' Opposition You will be glad to note, in this connection, the statement in the Annual Report that our Federation Branches unanimously and definitely oppose any suggestion of Government control of the products of our industry. Should, however, our Government decide to attempt to give effect to the demand by one section of primary producers for action to be taken ensuring immunity from risk of loss in the production of its particular product, then other sections of industry, both in town and country, will naturally demand equal treatment, and would appear to be quite justified in their demand. As I pointed out last year, this will entail exhaustive inquiries into every form of business activity, whether in town or in country, and would mean regimentation of the whole productive effort within New Zealand, and we should ultimately find ourselves classified in various groups under bureaucratic control on a totalitarian basis.

Any attempt to lift local prices sufficiently to be of any real assistance to our primary producer exporters, would obviously be nullified through the comparatively small percentage of consumption possible within New Zealand, of the total of our production for export. There is, however, far too wide a disparity in currency payments made for services rendered by city industries and services generally, and those received by the cities from the country districts and primary industries. This want, of balance between New Zealand currency returns for the two services 1 have mentioned, is the primary cause of the unrest expressed in resolutions moved by gatherings of farmers throughout New Zealand during recent years. This difference is becoming more marked as the effects of recent legislation affecting costs to the farming community for essential requirements on the farm is more fully appreciated. Primary Producer Unprotected Most of these goods or services are only procurable either from New Zealand manufacturers whose costs of production are arbitrarily fixed either under Court Awards or special legislation; while competing goods from overseas are forced to carry sufficiently heavy tariff charges as to fully protect local industry and enable it to maintain its arbitrarily fixed costs of production and still survive.

The primary producer exporter, however, has no* such protection afforded him, and 1 am convinced that an adequate inquiry should be undertaken, ■with a view to reaching an approximate estimate of the actual disability under which primary producers for export are working as compared with industries catering for our protected domestic market only. You will remember I mentioned the necessity for an inquiry along these lines in my address to you last year, and I would "again stress the need for a full inquiry into the alleged discrepancies in net returns to tho various sections of industry, whether engaged in production for local consumption cr for export and sale overseas. Tho effect of this has been to create many sections or separate classes in the community, and each section finds it necessary "to approach the Government with the request that they be protected from the results of concessions granted to other sections, and so on, ad. lib.

It is imperative, taking the long view, that all costs should be kept at a general level which will enable our production for export to continue, and, if possible, increase along lines leaving a sufficient margin of return to ensure a fair living to producers. 1 am glad to note that there is no longer any suggestion that a compensating price plan is to he advocated b.v tlio promoters of the Compensated Price Campaign, hut that the question is to ho regarded as one of principle, the basis preferred being a reduction of costs to a point where the farmer can continue to produce with a reasonable return for his labour, and the use of his capital and experience. This principle has been consistently laid down by our federation for over 20 years, and I feel you will gladly endorse it onco more on behalf of producers for export. We must face the facts as to what costs our industry can stand, and we appear to lie rapidly approaching tlio position reached in 1931, when the gross returns from many high country runs in tlio South Island were insufficient to meet costs of shearing, mustering, and the other necessary work on the station, without taking any account of materials required, Government llents, capital involved, etc. The result of attempts at fixation of prices of dairy produce to date, has fully justified the policy consistently followed by our federation, opposing Government control of the products of our industry and price fixation of meat and wool. While the present Government under its policy has raised costs of production beyond all precedent, in 110 case has the price of produce for export been raised above world parity, with the exception of subsidies granted in some of the minor primary industries for export, such as fruit growing, etc., the gross amount of subsidy paid in these cases being negligible. Key Industries The main or key exporting industries, however, appear to have received 110 consideration whatever by the Government, and we find dairy farmers throughout New Zealand complaining that as a result of the Government's attempts at price fixation, the dairy farmer, broadly speaking, has been prevented from getting the full market value of his produce. If the experience of the dairy industry, as expressed in statements by its representatives, is any criterion, 1 feel that you will agree that every effort should be made by sheepowners throughout New Zealand to maintain freedom of action with regard to the management of the productive side of their business, and the marketing of their produet.

The value of the products of the sheepowning industry exported during tho year ending on March 151 last, was approximately 32} millions, out of a total production for export from tho Dominion of approximately Go millions. These figures show that our industry is producing roughly 50 per cent of the total value of exports from the Dominion, and the maintenance oi the interests of sheepowners generally is a heavy responsibility on their representatives. 1 believe that those interests can best be conserved through our organisation in fViendlv co-operation with other primary producers' unions on matters affecting farmers generally. Meat Exports The report refers shortly to what 1 consider one of the most vital questions affecting our industry, that is the regulation and control of quantities of our mutton and lamb and kindred products into the British market.

1 sincerely trust that no action will be taken along the lines of suggestions made as a result of recent discussions on this question, which will in any way alter the terms laid down in the Ottawa Agreement with respect to the quantitative restriction of imports of mutton and lamb into England. The foundations laid at Ottawa as affecting New Zealand were definitely favourable to the Dominion, and sheepowners here have every cause for gratitude to the British Government for the treatment accorded to New Zealand exporters from the Ottawa year onwards. Similar consideration was given to us in the agreement made covering last year's quota, and 1 wish, on your behalf, to express my thanks to Mr. T. Duncan and Mr. J. Fraser, of the Meat Board, and the Hon. W. Nash, as Minister of Marketing, for the good work done by them in this connection on our behalf last year.

I feel very strongly that any alteration to the existing arrangements can lie none other than detrimental to NewZealand, taking into account relative quantities fixed for export from the various Dominions and foreign competitors, as compared with the bulk value of export trade from Great Britain to New Zealand, and that to competitive sources of supply. Difficult Season With regard to the season just past, it lias, 1 think, been one of the most difficult for farmers for many years, climatic conditions having been most unfavourable from a stock fattening point of view, while the sudden changes from very dry conditions over a prolonged period in some parts of tlio North Island resulted in the severest epidemic of stock sickness and monetary joss experienced for many years. I hope the results of the research now in hand by the Agricultural Department will definitely point the way to the prevention of a recurrence in the future, and 1 should like to pay my personal tribute to the Department for the sympathetic way in which stockowners were met with respect to research in this matter. The continued increase in the numbers of our sheep is a matter for congratulation, especially as the bulk of tho increase is in ewes. This should assist in maintaining our quota overseas, and possibly allow of still closer grading, with a view to our maintaining the highest possible quality, a factor which is becoming increasingly important.— P.B.A.