FARMERS’ UNION

Patea Mail, Volume LIII, 14 March 1932, Page 4

FARMERS’ UNION

NEWS AND NOTES

FISCAL POLICY TO BE PREPARED

A committee consisting of the following Cabinet Ministers, Hons. Forbes, Coates, Downio Stewart, and Masters, has been set up to prepare a fiscal policy that will best meet the needs of New Zealand as regards intraEmpire trade. Most probably the New Zealand Farmers’ Union will be asked to submit its views to this committee before the New Zealand delegates leave for Ottawa Conference in June. Up to the present no definite agenda has been set out by the British Government, but it may be assumed that two of the major matters for consideration will be, (a) the extension by customs tariffs of further assistance to Empire industries, and (b) some comprehensive scheme of Empire preference will be evolved which will replace individual trade treaties between Dominions. The fiscal policy of the union Is very definite, viz., that taxation through the Customs shall be for the purpose of raising revenue, and not for protective purposes. Last August a reciprocal trade treaty between Canada and Australia was ratified by the Parliaments of both countries. According to the Australian Minister of Markets, it is estimated that Australia would gain at least £4 m. from the agreement, and that these benefits would mainly go to the man on the land.

Among the main concessions gained by Australia were: —

(a) A preference of 5 cents per lb on fresh meat, in lieu of 3 cents pro viously. (b) An increased preference on can ned meats from 124 to 20 per cent.

(c) Australian butter gained an advantage of at least 14s per cwt. over that of New Zealand.

(d) Australian cheese got an increased preference from 3 cents to 6 cents per lb. against all countries except Britain.

(c) As soon as Australia could supply Canada’s requirements of rice it would enter free, while rice from all other countries would become liable to 25 per cent, ad valorem. ,Tho concessions secured by Canada in return were: —

(a) The admission of Canadian salmon under British preferential tariff, with an increase in the general tariff from 2-Jd to 4d a lb., thus giving Canada a greater trade advantage over U.S.A.

(b) The duty on foreign timber was to be increased so as to give Canada a preference of 2s per 100 sq. ft. (c) General tariff rates on unassembled chassis wore increased from o per cent, to 174.

The underlying idea of the treaty was to divert trade from foreign countries to the two Dominions. FINANCIAL ILLS.

During the past six months the people of the Dominion have been inundated with pamphlets, letters in the Press, etc., suggesting sure cures for our financial ills, with the consequent result that everyone is suffering from severe mental headaches from the surfeit. The latest pamphlet has just been released to the farming community by Professor Bclshaw, of Auckland University, in collaboration with some of his lectures; the “pills” recommended to be taken by this coterie of economists arc by no means sugarcoated, and to be effective must include:—

(1) As a first step the exchange rate should be raised to 25 per cent, and held at not .below that level until conditions stabilise overseas. The currency should then be re-valued in terms of sterling at a level to be determined by an expert committee. (2) A reduction in all interest and other fixed charges should be imposed, subject to exemption in the ease of hardship.

(3) The Government and the banks should agree to a lowering of deposit and “over-the-counter ” rates.

(4) A further reduction of wages and salaries of 10 per cent, should be imposed.

(5) The Government should effect economics to the extent of £1,000,000 contemplated in the Financial Statement, October, 1931, and a further £1,000,000, including a 10 per cent, reduction in the salaries of civil servants.

(<5) A plan should be prepared to balance the Budget in two or three years, deficits in the meanwhile to be financed by Treasury Bills or other form of internal loan.