FARMERS AND POLITICS.

Otago Witness, Issue 3881, 31 July 1928, Page 13

FARMERS AND POLITICS.

DEFINITE POLICY EXPOUNDED.

ADDRESS BY MR W. J. POLSON.

Speaking at the annual conference of the New Zealand Farmers '' Union in Wellington on Tuesday, the president. (Mr W. J. Polson) dealt -with the various planks of a political platform drawn up for the union by a special committee. Altogether, the address covered six main features, which were disposed of bj- Mr Polson as follows.— I. do not think it will be necessary to. adduce arguments to convince producers that a system which has allowed the . largely foreign-controlled banking inter-' ests in this country to make profits and create reserves such as have been made in New Zealand, while keeping up the interest rate on overdrafts to the figure we have had to pay, is not in the best x interests of the country. During this tion upon the subject of banking profits and secret reserves before members. That the State should be associated with such conference I propose to lay some informaa system is ’paradoxical when we consider the true funet ; ons of the State. It is questionable if it is the function of the Stat.’ to associate itself with any privileged section of the community in maintaining any rate of profit which, is prejudicially affecting the production, trade, and commerce of the country. If it is recognised to be the duty of the State to protect the public even to the extent of guaranteeing an institution when the interests of the shareholders are imperilled, conversely it is surely equally- its function to intervene when the operations of the institution unduly- oppress the public. We do not require a State bank in this country if the existing banks will continue their useful service Ij the State at not too great a cost. But it is the duty of the State which controls the most important of them to exercise a watchful supervision, and not merely maintain an attitude of benignant acquiescence under all circumstances.

When the proposals for a better system of rural credit were discussed by this conference, it did not occur to members that two more State lending boards were to be created to augment those which exist already, and add to the power and patronage of whatever Government may be in office. Co-ordination of the Lending and Land Settlement Departments of the State is necessary if we are to reduce public expenditure and provide sound finance for those who need it. The legislation of last session for rural intermediate credit requires to be purged of the clauses providing for the 20 per cent, guarantee of stock and station firms to enable individuals to borrow without joining an association, and in order that sound co-operative principles, without which the scheme cannot be a success, shall be firmly- established. It is difficult to get our legislators to understand the importance to producers of a sound co-operative ground work, and in no instance is this more particularly the case than in finance. The whole fabric of the rural credit system is based on the co-operative group. Who is better able to know the suitability of an applicant for such a loan, his ability- as a farmer, his status, the productivity of his farm, than-his neighbours? A sound plan of rural finance with thrift, hard work and ■intelligent oversight as its main planks, has been built up in many parts of the world by- these means which it was the aim of the commissioners to see adopted here. That it was adopted only in part is no fault of theirs.

There is no reason why the principle of intermediate credit should not be extended to traders. \ Indeed, such systems are already in use in several countries of Europe. Conducted on sound lines, they provide finance at a low rate of interest, which is reflected at once in the lower price of goods and consequent increased purchasing range of the customer. ECONOMY ESSENTIAL. The need for both Government and local body economy is self-evident to all who examine the'figures. Both our public debt and our taxation, whether Gov-- • ernment or local body-, are steadily increasing, although, owing to the abnormal increase in the Customs revenue in 1921-22, the taxation that year appears higher than others succeeding it. It is true that nearly half of our public debt is reproductive, but as has been more than once pointed out, it is doubtful if the figures could be sustained if some of the State services were capitalised at their actual cash value to-day. In any case, the. burden of public debt in the shape of interest payable abroad, and this includes local body interest, payable abroad, plus the cost of our imports, without taking any- of the other factors into sonsideration, is sufficient. to affect th,* Soundness

of our trade posit ion,., and unless the strict'economy we. ask- for here is carriedinto effect. ’ will disastrously affect our future-development. . 7 -This, I believe, is precisely the view of your, committee. ’ .- ’ Z. . < Relief. from taxation implies both general, and local, taxation. The. four points ol this important plank speak for themselves The;.incidence of . hospital and charitable aid, taxation has. long ..been.'-.a sore point with farmers, who bear too great a share of the,burden without receiving an adequate share of the benefits.- It is necessary that population, as well as rateable value, should be taken into account in any readjustment, if the. bur den is ' to fall equitably upon town and country. The Necessity- for redirecting the stream of finance to rural securities needs no elabo ration by me. Every farmer knows the effect .of'such a system as .exists in New •Zealand j although not all know'that the - reason is’ that- over' 80 ’ per' cent. of'the total "income of ; New ~ Zealand is paying less than 40 per cent, of the' taxation (Sir' W. D. Hunt’s figures), through the application .of ' the tax to. large. companies which, though generally owned by a multitude of small investors, are taxed on the graduated scale and compelled to add the increased tax to their working costs and collect it by" higher charges to their customers. . , ■ ' ; -• ■’ THiS ARRITRATipN ACT. ..'■ The recent industrial conference, which spent-so’’much’time upon a\discussion. of the Industrial Arbitration “and Conciliation Act, while, it did not lead to a inent of the most' important question, be ; f(>re it—-how best, to' amend the . Act-— threw * great deal of light oh the work;

ing of the whole system. It is an ? open secret that the workers’ representatives themselves were considerably impressed by the employers’ proposals, based on what- has been called “ the optional' system.” Those proposals were designed, -while removing the great blot of one-sided compulsion from the Act—so that the court’s use would be optional not with one side only as at -present, but with both sides—to give the greatest possible measure of “protection to the workers and to allow them certain freedom in the direction of national councils of industry, • for which many of them have" been long agitating, and which they do not’ nossess at tlie present. . ' . \ .... ;z" .The most remarkable. result discernible as the result of the conference from the point of. view of. the employers was . the unanimity which prevailed amongst all sections, both primary and secondary, who took part in it, the better understanding obtained, through an interchange of one another’s .points of view, and the better and more friendly relations established with many of the representatives of Labour, which will undoubtedly -result, in the settlement of many disputes without the intervention of any tribunal at all, if only it can be maintained in the. future. ■ Your delegates, having agreed on your behalf, _ as the result of long consultation in committee, .on the proposals, submitted by the United employers, those proposals have now been substituted ini this, platform for the original proposals which provided for practically the same relief under the com pulsory system, that is now asked : for under the optional: system. The optional \ system briefly provides that al! unions’ of employers or workers

must. register, and take their dispute to the Conciliation Council, i If it is not settled by that tribunal, then only on the agreement' of a substantial majority of the assessors can it proceed to the Arbitration Court. . The judge of the court may, however, convene a compulsory conference of the parties, if he has reason to fear a strike dr a lockout as the result of failure of - the assessors to agree to this course. At this conference, however, he merely the powers of a mediator. In exchange for the loss of compulsion, the workers are given the protection of a minimum wage to the lowest paid group of workers in an industry, as well as maximum hours, trhile'' unions of winch 60. per Cent; are women will still remain within the protection of the court as at pi esent. ■ Another important point is that the machinery of the Industrial Conciliation and Arbitration Act is retained intact. The court continues to function when disputes aye referred, to it by a majority of the Conciliation Council, as it has hitherto done 1 . If the optional system fails, then the arbitration system may continue to operate, and vice versa, if. the optional system succeeds, the arbitration, system will fade’ into - the background and ultimately disappear. ' ,’. t - There is no question that the establishment of such' a system would make for better w’orking conditions in industry.. It would result..in--.better, relations between workers and einployers and do. more : to prevent strikes. It would > adequately protect trade unionists whose orjganisation would bd unimpaired, and would put employers on their toes to see that no action bf .'theirs gave excuse for a strike. <

TARIFFS AND THE EMPIRE. The most important plank of this platform in the eyes of many producers will be that relating to tariffs upon which many are unable- to compromise. While we are agreed that there are industries which cannot be established without as-

sistance, and others that can neither be established nor maintained without substantial help, we are not agreed as to the form of assistance or help should take, or whether in every case it is desirable to provide assistance at all. The form m which this important plank is set out here is designed to provide that the question shall be discussed from the economic and not from the political standpoint by such an authority as has been created in Australia, in order that the best interests of the country may be ■ served, instead of the interests of any section however influential, and in order that these industries which are natural and essential to the Dominion may receive the assistance to which they arc entitled. There is already machinery for a Board of Trade in New Zealand. Its functions could be widened to include tariffs and a body of men appointed who would be worthy of the confidence of the community to undertake the responsibilities. In any ease, the question of inter-empire trade is of great and growing importance to the Empire, including this Dominio; A new spirit has been created, and it is now practically certain that the next British election will be contested on the question of Imperial preference. Britain has discovered that ties of blood and sentiment are of greater advantage than ties of finance. She has seen her South American trade encroached upon in spite of her enormous financial interests there, through the growth of a national spirit, and she has begun to realise that Imperial preference may mean not only the solution of her industrial troubles, but a united Empire, which is both self-contained and prosperous, and where a national spirit is pure advantage. LAND SETTLEMENT.

The Minister of Lands has announced that he is bringing down a new Land Settlement Policy. I am personally glad to hear it, although it smacks somewhat of -tlcathbed repentance, because is shows a belated conversion to the views of' the Farmers’ Union, and is an admission .of ‘ the reasonableness of our urgent demands for a more enlightened land settlement policy. What is necessary in New Zealand is not merely more production. • but more production per acre. The area of land suitable for settlement in this Dominion is unfortunately limited. Much is unsettled that can still be settled, and will be settled sooner or later, in -spite of whatever obstacles near-kighted:, governments may interpose. But much more has been settled by the hardship and sweat of men and the hardship -and endurance of women in New Zealand jvhich. through no fault of theirs, is being allowed to go out of production almost entirely. It goes without saying that we want closer settlement and more extensive settlement in this country, but more particularly and urgently we want relief and assistance to. those people .who arc die victims of our deteriorated land?. The prosperity of the nation depends upon primary, production. Increase it and New Zealand flourishes, decrease it and everything stagnates. It is. essential, to increase production, and even if the State is compelled to forego its faxes and assist in the fight to restore such land to a productive basis, the ■ task should be undertaken.

Any new land settlement policy should, include plans for the rehabitafidn of our. deteriorated lands, a scheme for the early settlement', of our .second-class lands upon a group system under' Government supervision, a plan for the closer settlement of such estates as will carry more population, a method of providing workers’ villages where married men can secure accommodation for their wives and families, as well as. regular work, and, last, but not least, a sound system of farm schools where young men from • the towns can receive a reasonable remuneration for their work, learn to become farmers, and ultimately 'be assisted to take their place on the land. Even that purblind partisan, the Welfare admits that.there has been a decrease in .the number of farm holdings of 511 -diiying the past four, years, and that “with the steady growth of population this is serious enough.” -Without going into, figures or entering here into , any argument whether the official statistics show.-exactly how many people have deserted the . land or. not, - it is obvious that there is serious and immediate need for a change in our land settlement policy in. the-interests of the Dominion as a whole. SOCIAL LEGISLATION. . The last plank of this platform deals with social legislation, a subject as important to farmers as to the rest of the community. It is a matter for profound congratulation that all classes of the community are in substantial agreement upon the questions., referred to below. They were dealt with by the Industrial Conference, and fully explored. ~ ■ The only comment I wish to make m connection with the conference’s proposals is that in my opinion none of them will mean an added burden upon: the State. On the contrary, I am satisfied that, they will reduce the burden. We want unemployment dealt witli bn common sense business lines; we waiit'a system:that will investigate and deal with the causes of unemployment and reduce it to a minimum. We pay for unemployment now not only in the substantial drain on the consolidated ’ funds, but in other less noticeable, but much more serious ways. How can we measure-the deterioration of our man power through unemployment .and of character and principle under the strain of starvation. Similarly, we want immigration administered qn business principles. When we can- absorb population, let us bring in all the immigrants we can, but when conditions render it impossible to do so without displacing our own workers, then immigration ■ should at once- cease. In any case the whole question must not be the subject of the caprice of any party . in power, but' should .be tackled on a sound and scientific plan. '• ■ Z Finally; -every -farmer will ’welcome’ compulsory^'insurance./ >We ; practically all insure our employees already and a

compulsory scheme will entail no hardship, and certainly not increase the cost. Also, if the suggestions of the Industrial Conference are adopted, it will provide for the rehabilitation of the injured so that they will cease to be a burden on others or themselves, and be able in very many instances to resume their places as workers, producers of wealth, -. and assets to the community. Gentlemen, while the six planks of the policy adopted by the committee which I have endeavoured to expound to you, do not cover all those questions which concern the primary producers, we have considered it desirable to confine ourselves to the main subjects rather than to let diffusion mean confusion. There arc many questions also, which other sections of the community may consider important, upon which we ’ have not touched. It does not follow that we have no opinions upon such questions. We believe that the adoption of the planks of the policy we have outlined will enormously' assist, not only the primary producers, but the community as a whole. We believe that what New Zealand needs is economy, a tapering down of our borrowing policy, in a word, greater self reliance, more appreciation of the fact that good government is a matter of business, not politics, that we cannot apply the methods of yesterday to to-day; that the world is organising production and industry, and we ' must also do so; that progress lies along new lines which must be laid on solid foundations, and that efficiency, progress and fraternity. are the stepping stones to that, high place in prosperity these fortunate isles should hold.