PRODUCE OUTLET

New Zealand Herald, Volume LXXV, Issue 23163, 8 October 1938, Page 19

PRODUCE OUTLET

BRITISH MABKETS RECIPROCAL TRAOING LEGISLATIVE RESTRICTIONS [from oub owx cobbespomjext] HAMILTON. Friday "New Zealand is fortunate in being able to produce far in excess of its own requirements, and so long as we are just to Britain, and can produce the goods she requires cheaply and maintain a high standard in the quality of our products as well as regular supplies, we have little to fear in regard to retaining and expanding our hold on the British markets," said Mr. E. M. Edkins. addressing the annual meeting of the Farmers' Co-operative Auctioneering Company, Limited, to-day. "Great Britain provides the navy to protect our Dominion and keeps the trade routes open for the safe delivery of our goods to the overseas markets. It beltoves us, therefore, to assist British industry by taking a greater quantity of her manufactured goods, those that can be more economically produced in Great Britain than in New Zealand. In doing so we naturally en courage her to take a greater volume of our products. Barriers to Trade "Tariffs, especially on British'goods, are barriers to trade and to low cost, of living," continued Mr. Edkins. "It would give the one and a-half million people of this country something to think about if Great Britain suddenly retaliated by imposing an import duty on our primary products, and asked us to provide our own navy. Great Britain takes about 75 per cent of our exports, and we in return take only about 25 per cent of our requirements in manufactured goods from her. There are industries carried on in New Zealand that could not exist if they were not bolstered up by uneconomic traiffs, and ii would pay the people of New Zealand in some instances if those who had invested their capital in these industries were bought out and the industries closed down. The effect would ultimately be a reduction in the cost of living. "There is a-great deal of controversy about the introduction of secondary industries in New Zealand. We want suitable industries established hero, and Great Britain has distinctly stated that she has no objection to the introduction of these, provided we can maintain them without imposing tariffs against those goods that she can produce more cheaply than we ran. It is definitely uneconomic to establish industries protected by tariffs and to employ a few hundred people if by :o doing one and a-half million people will have to pay an unduly high price for those goods when a considerable saving could be effected by importing them. Artificial Methods

"I would like to quote remarks toade fay a French statesman when it was suggested oranges should be grown in France fie said* 'Come now, let us grow oranges in Paris. The first thing we will need will be glass houses. Think of the work*for glass makers! Then %e wOl need iron frames to put the glass in. Think of the work for the 'inakers of frames! Then we will need SO/ jifr'the work for the builders 3 Then we will need heating apparatus. Think of the work for the engineers! Then we will need coal. Think of the work for the coal miners. Finally I can prove to you that we can raise oranges in Paris at a cost of 100 francs, which the Almighty produces at Lisbon for a mere nothing.' "Why not exchange those things we can produce cheaply for those things Britain can produce much more cheaply than we can? / Incidence of Taxation "1 would like to mention an example of how we could materially help to absbrb the unemployed and reduce unemployment tax," said Mr. Edkins. "New Zealand, I believe, is the only country in the world that has imposed a tax on the export of gold. The fundamental objection to this tax is that it is levied regardless of whether the company or person taxed in this way is making any profit whatsoever. No other industry is so taxed. This tax is definitely driving thousands of pounds of capital out of New Zealand and is helping to swell the ranks of the unemployed. If it were altered to a tax on profits it would encourage the investment of large sums of money in New Zealand, stimulating prospecting and making practicable the working of numerous deposits of low grade ore. • ' "If everyone pays his fair proportion, no reasonable person should object to fair taxation on profits made. Some people are paying no income tax whatever, but are making a much larger profit than are others who are paying more than their fair share, and 1 think the time is long overdue when the whole incidence of taxation should be revised. If everybody paid his share it would inspire confidence in capital development, a greater number would be carrying the load and it would lead to a reduction in the rate.

"Some people seem to look on capital as if it were a plague. Would you call the depositors in the Post Office Savings Bank capitalists? The huge amount deposited is controlled and administered by the Government in power. Dairy Produce Prices 'The advocacy of an ever-rising price for our dairy produce beyond a world competitive level is wrong in principle, and if carried to undue lengths wUI surely have its repercussions. The principle of selling dairy produce through one channel is good, and should be strictly adhered to, but it should be controlled by the Dairv Board in association with the Government, who would necessarily have representation if assisting in assessing the price. This principle eliminates the possibility 1 of one company becoming panicky and breaking the price. "1 understand that the Dairy Board Conference held in Wellington and the National Dairy Conference held in New Plymouth affirmed the principle or orderly' marketing at present in operation on the British markets. This scheme is similar to one Mr.- W. Goodfellow tried to introduce some years back, but he could not. bring about unanimity among the dairy companies of New Zealand. Farmer* Justified "The farmers of this country are perfectly justified in demanding a price in conformity with the decision of the advisory committee appointed by the Government, especially an they have no control over their produce after it leaves the farm, and, the Government fixes the price to. be paid for it; In fact, they have no alternative.but to demand a better price level if they are to maintain their farms in a solvent position. Mr. Nash admits that if the price were increased it would wreck the scheme by piling up heavy deficits. He contends that the buying price must be governed by the selling price.

No Gorernnient can force purchasers overseas to pay us a price in excess of a world' competitive price. A practical demonstration is at band in last season's rise in shearing costs from 28s 6d to 34s per hundred. Wool, however, dropped by over £6,000,000. The Government then reduced the wages to 28s €d.

"But why do this if we can insulate New Zealand from world prices? Why not keep the price of wool stable and wages up? Who, is to find the huge deficit of oyer- ■£6,000,000? You can "get out of a pint measure only what 3*ou put into it. Costs still Going Up !'"With these facts before us, it naturally makes fanners wonder what the position will be regarding costs in "the near future,, especially if there should be a* materia) drop in our dairy produce; price similar to that which occurred in wool," said the speaker. "Yet some members of Parliament move round the country telling the public that we have not gone nearly far enough in raising wages, shortening hours of work and increasing social services. , "We have numbers of our farmers' sons and young people brought up on the land who are leaving the farms and are flocking to the Public Works for more remunerative pay and shorter hours. How are we goiug to get the large increase in production necessary to carry the load if this movement should continue? We have to-day a land policy in name only, and if we intend to overcome our difficulties and materially increase production we must introduce a very progressive and liberal land settlement policy to induce our young people to remain on the land "and to give them some prospect of making a living out of farming. Government Competition "If New Zealand were self-contained, with a population and finance sufficient to provide and maintain a 'navy, an air force and an army, and did not depend on other countries to absorb its exportable products, we could do many things that are absolutely impossible* to-day," Mr. Edkins continued. "Even Great Britain is not in such an enviable position, and cannot hope to stand up to a world war without assistance from other countries.

"Whenever Governments enter into close competition with industry the result is rising costs. People fear to invest their capital, not knowing what new regulations will come into force to protect- the Government business against private enterprise. The more capital we can encourage to come to this country for the purpose of developing our lands and establishing useful economic industries, the better the chance we will have of finding employment for our people and the better inducements we can offer to immigrants. "In conclusion I wish to say. and in this I do not wisfr to implicate my fellow-directors, that when a Government comes along that can show me that it can successfully insulate New Zealand from all fluctuations of the world's markets, pay a price to our farmers for their products covering all costs of production, including _ those imposed by legislation from time to time, and" leave him a remuneration commensurate with the time_ and services he renders in comparison with other members of the community, I, as a producer, will give that Government my full support."

WOOL SALE REVIEW THE 1987-38 SEASON DROP FROM PREVIOUS YEAR DEMAND FOR BINNED LOTS [from oce own correspondent] , ... HAMILTON; Friday The chairman of directors. J&r. Edkins, of the Farmers' Co-operative Auctioneering Company, Limited, deferred to the 1937-38 wool season at the annual meeting of shareholders of the company to-day. "Weather conditions being exceptionally favourable, shearing last year commenced earlier than usual," said Mr. Edkins, "and in consequence the limited catalogue for the first, sale of the 1937-38 series was filled early, a number of growers being disappointed at their dips having to be held over for the second sale; Just prior to the sale, scheduled for November 27, a substantial drop in values took place, and as the Auckland sale was the first of the New Zealand series, considerable interest was evinced and the result of the sale awaited with eagerness.

"The high level of prices received during the 1936-37 season was not expected. but growers found it difficult to adjust their ideas to a drop of approximately 6d per lb., and were loath to meet the market. Consequently, fully 45 per cent of the offerings was passed. The net result, however, gave a better return than was received for the first sale of the 1935-36 season.

"The second sale took place on January 24, 1938. the catalogue again being limited. Values showed slight variation; growers, however, were more inclined to meet the market, and fully 96 per cent of the offerings was sold.

"The final sale of the season was held on March 26, 3938, when a record catalogue was submitted to buyers. Taking into account the heavier condition of the later shorn wool, prices wore slightly better than at previous sales, and although owing to the large offering of lambs' wool the average price per bale was slightly less, it was the most satisfactory sale of the series. We offered, in conjunction with our sister association, the North Auckland Farmers' Co-operative;— First sale, 5963 bales; second sale, 7162 bales; third sale,. 8750 bales, a record. "The following comparison of prices for the past six seasons will doubtless be of interest: — Season per lb per bale d ■ : £ s d 1932-33 .. 8.75 5 11 1 1933-34 .. 9. J 8 14 1 1 1034-35 .. 5.02 8 5 0 1935-30 .. 8,16 12 7 6 1936-37 .. 14.84 22 010 ; 1937-38 9.33 13 17 10 "Growers are realising.", concluded the chairman, "that classed and binned wools are keenly sought after by buyers and competition for them is always keen and animated. Our stores have the most up-to-date facilities for the classing and binning of clips. The company's eaqpert classere are available for all, and I look forward to a considerable increase in the quantity of wool binned during the ooruing season."