RURAL RELIEF

Otago Daily Times, Issue 22326, 28 July 1934, Page 18

RURAL RELIEF

AUSTRALIAN PROPOSALS \ A £20,000,000 LOAN (From Odr Own Correspondent.) SYDNEY, July 14.; It is becoming more and more’apparent that the Federal Government’s scheme for rural relief will be one of the main issues at the general election to be held in September. In the past the assistance that has been given to primary producers has been of . a haphazard character, and it has been clear that the Government had no settled policy. This was not satisfactory to the Government, for it raised great difficulties in the framing of the Budget. Every now and again there would be an outburst from one section of the producers or another, and the Federal Government would grant some temporary relief. This was all against the stability that is aimed ■ at, hence the more comprehensive plan that is now under consideration. The final details of the proposals have not yet been worked out, but they will call for a loan of at least £20,000,000. This will be raised internally, and the Government has already received- encouraging offers of help from banks and other, financial institutions in the. raising of this huge amount. An essential feature of the scheme is that there shall be no sacrifice of individual principles or the orthodox relationship between debtor and creditor. It is estimated that 50.000 farmers, will be affected by the scheme,

The Federal Government still favours the Canadian scheme of rural rehabilitation, but in order to suit Australian requirements will utilise similar machinery to that employed by the Repatriation Department in placing -returned soldiers on the land. Most; of the administration work will be entrusted to local committees, who; will work in a purely voluntary capacity, thus keeping down the expenses. Investigation into the amount of assistance needed by individual farmers would be carried out in the first place by the local voluntary committees. With the adoption of this scheme a farmer threatened with dislodgraent would appear before the committee and : place his case before it. The committee would then report to a central State committee, which would decide whether the farmer by his efficiency merited assistance, and if so, to what extent. Efficiency in the farmer would be an essential. ’ A farmer regarded by his local committee as inefficient would not be able to retain assistance to remain on the land and would have to resign himself to obtaining more suitable employment. By this means it is hoped that the. general standard of farming will be raised. Of the 70,000 wheat farmers in Australia it is estimated that 25,000 are in urgent need of assistance.The idea, briefly, is to open up an avenue of debt settlement apart from the Bankruptcy Court. There will also be a Federal Farm Loan Board to provide new finance at reduced interest rates. The scheme is of suph a nature.that the Government feels it must have a. hew mandate.