PRIMARY AND SECONDARY INDUSTRIES

Otago Daily Times, Issue 21940, 29 April 1933, Page 15

PRIMARY AND SECONDARY INDUSTRIES

TO TUE EDITOR.

Silt, —The attitude taken up by your correspondent “ Advocate ” gives one the impression that he is admitting defeat, even though he claims to have had the best of this discussion —a claim which is, in my opinion, one of which your readers must be the judges. Your correspondent should remember self-praise is no recommendation. Moreover, it would be to his benefit not to side-step my statements. “ Advocate ” claims to have ousted me from New Zealand. Not so. Readers who have followed this discussion will sec that it was necessary to quote examples outside of New Zealand because the problems that confront the primary industries to-day are world-wide, and not solely confined to this country. As, however,, your correspondent would rather deal with the problems that confront the primary industries in a abstract manner, I shall confine my letter to conditions in New Zealand.

Your correspondent is still of the opinion that the Government is afraid of the city vote. If “ Advocate ” was to state that it was afraid of the country vote he would be correct. The Railways Department gives generous concessions for the transport of primary produce. The farmers receive labour through the Unemployment Board for the mere cost of feeding and providing shelter. Relief is liberally allowed in land tax and income tax. Concessions granted on local rates. Guarantees and bonuses are paid on certain primary produce. Besides all these concessions and others, there is the exchange tax—or should I say the increase in the exchange rate?—which is a gift_ of 15 per cent, extra to primary industries and a burden for the city folk to carry. The secondary industries receive no real benefit from the increased exchange. These industries were quite capable of holding their own without the extra 15 per cent, protection. I fail to see, therefore, what benefit they will receive from the increased exchange. Many secondary industries have received a setback, as it is in, a number of cases necessary to import ra w materials, and, of course, an extra 15 per cent, duty must be paid on suca materials. . TT .. . As to New Zealand being the United Kingdom’s best customer, this is not my statement, but the statement of the British Board of Trade. Based on our population we are England s best cus-' ,tomer, despite the fact that we purchase goods from Japan, which take in return our primary produce. In the event of the whole of the community becoming primary producers of the abolition of secondary industries, and or the introduction Of Freetrade with the United' Kingdom or, better still, the world, I would like your correspondent to say where the necessary revenue would come from to take the place t of the revenue at present collected from income tax on the city folk, the tax on secondary industries, and the Customs tariff. Secondly, where is the money to come from to place the community on the land? Thirdly, as there would be an enormous increase in our primary produce, even taking into consideration the extra thousands that would be employed overseas to manufacture goods sufficient for our requirements, could the population of the United Kingdom consume the extra primary produce in face of the increase in the exports shipped from foreign countries? —I am, e t c>i New Zealander. April 27.

TO THE EDITOR. Sir, —With an absence of self-conscious-ness truly amazing “ Advocate ” has fallen from his sphere of rhetoric and given us a double dose of fantasy. . . The franchise being as it is the city vote should have equal strength with that of the rural districts. Allowing that no land value had advanced since 1914 —and this is not so—yet, with a Government adding a cool ten million to the national debt every year, does it not follow that taxation must increase and that the taxpayer’s position must become harder in proportion. In order to cite an instance of favouritism towards the secondary industries, “ Advocate ” mentions the exchange rate. Yet the only representative we had in the Cabinet (Mr _ Downie Stewart) resigned because of his disapproval of this measure. City and farm workers have been hit alike through inflated values, but when we remember that the price of bread is higher in New Zealand than in any other country in the world, then the city worker ought to be commended for his exemplary fortitude. The unseen power of the city rate is another item that seems to upset my friend’s equilibrium, but to my mind I would place that power as follows: —The banks, civil service, primary industries, and secondary industries. So that “Advocate” may get a better insight into cause and effect, I would suggest his reading Mr W. Sivertsens letter in the same issue as his own effusion.—l am, etc., Glasgow.