HELPING THE SMALL MAN

Poverty Bay Herald, Volume LIV, Issue 16651, 22 May 1928, Page 12

HELPING THE SMALL MAN

GOVERNMENT'S POLICY UPHELD

CONTROL METHODS DEFENDED ADDRESS BY HON. 0. J. HAWKEN t That the Reform Government was determined to do its best for the .small farmer who was seeking independence, and that interference in private business was absolutely unavoidable if that were lo be accomplished, was the claim made by the Hon. 0. J. Hawken, Minister of Agriculture, at thfe anniversary luncheon of the Edendalo Dairy Co., which was attended by over '3OO suppliers and representative citizens and settlers of Southland. The Minister outlined certain aspects of the Government's policy very clearly. He said, in opening his address, that there had been a good deal of talk lately about Government interference in business, and lie would like to say that it was impossible for the Government of a country to help the majority (if its people without being guilty of some interference with certain sections of the community. The Reform Government had always had as its objective the helping of the small man who was striving for independence. If was always anxious to do what it could for the trier.. Those who had followed that Government's policy carefully and dispassionately had to admit that'such was the case. They could not fail to realise, that the aim of the Government had been to build up Ihe mass of the people in the best possible way. Moreover, sometimes this could not be done without interference in business. At one time the Government, and the country generally had been very much in fear of the large combines and trusts that were springing up all over the world, and becoming such a marked feature of modern business and commerce. And this tendency was alarming a. great many ; people, to-day. In this connection the Government had felt that its most effective answer and counterpoise was national co-operation, llus alone could be expected to combat the menace of the accumulation in a few hands of financial and commercial wealth. Tims the Government had set out to build up and strengthen co-op-eration in New Zealand.

"In doing so," said Mr. Hawken, "we trod on a few people's corns, notably those who were all for what they termed 'an open slather,' regardless of the fact that such a state of affairs is not much good to the small man. The producers had, and still have, a great many difficulties' to contend with which can only he effectively handled by cooperation,. Hence our control boards." SHIPPING FACILITIES One of the big problems facing producers, said the speaker, was that of shipping facilities and freights. They were up against a combine in this, and the position became so acute that the Government was urged to go into the shipping business. This was not done, as the Government was rather afraid, of State shipping, and was anxious to avoid such a policy at all costs In-cast-ing round for an alternative, the idea of control boards had been decided upon. These had boon set up in connection with several industries, and immense reductions in freights followed very quickly. Of course, there were thoso who maintained that- these reductions would have been secured anyhow, without hoards, but his answer to these people was the difference between outward and inward freights. The cost of bringiup cargo out to New Zealand was much higher than the export freisht. The reduction in meat, freights already secured amounted to over £1.250.000. and the lower rates were saving the dairv industry £270,000 a year" These things had not been brourrht about by a sinale hnrenin ; a creat deal of hard work was entailed. Tf the control boards aecom plished nothing more than freight reductions they were worth' their place in the economy of the nation. STANDARDISATION OF PRODUCE Dealing with the standardisation of produce, which was another, of the Government's moves to assist the producer, Mr. Hawken said that not many people fully realised the extent to which it bad helped the country. The grading and standardisation of all classes of produce had resulted in immense advantage to producers. It was the hope of the Government that one day everything that left Now Zealand would he graded up to a standard of quality. Certainly the country would bo receiving millions of pounds less for its exports if they had continued in the old way. Some people could not see that it was for their own good. They called it interference, but he coidd only urge all primary producers to make tho most strenuous endeavors to improve the quality of their products in order to make them more saleable at a heller price. A great deal of criticism was levelled at the Government, ' lie said, but he could assure, them that the Government —every member of it—was fully aware of the-' farmer's necessities and difficulties, and there was not one of them who was not anxious to do what he could. To demonstrate what the present Government had done for the men on the land, he said he would like to refer to two important changes in the incidence of taxation which had been brought about by the present Government.

LOCAL RATES "Six or seven years ago," he said, "(he Government saw ]a menace to flic farmer in the rapidly rising local rates. Tho upkeep of roads and main highway's was becoming far too heavy a charge on the land and the producers. This gave rise, to the theory that the user should pay for the road, and this is now almost universally accepted. The present system of motor taxation has lifted a deadweight off the land which had been far too heavy a burden for the farmer. The difference will he felt more as time goes on, and particularly after one or two good years. If the Government bad not stepped in in time the land would be much more heavily taxed, it is n- generally accepted principle that industry should not be penalised bv tor heaw local rates, so that we had to d" something. As things were, local rating was wrong in principle and burdensome to industry, but von will soon begin to no!ice the reaction in the farmer's favor as a result of the change over."

RURAL FINANCE Rural finance, said the Minister, was the second point he wished to stress. Farmer's finance had recently become absolutely rotten in principle. The Gov« ernment's only way of dealing with it was through borrowed money, but the policy of borrowing and renewing loan? without doing any paying back was unsound. Some definite means of providing a more consistent How of investment; in', the direction of rural securities had to be evolved. With this end in view two credit systems bad been placed upor the Statute Book. The system of long* term credits would make a trcmewlovf difference to the man on the land, wh< was now harassed by the cost, worry. and uncertainty of renewals. Such r state of affairs'was not in the best interests of industry. The system was n good one, and although it could not b< perfected -without the aid of the farni ers themselves. Then there was the in lermediate credits system, which hr considered to be one of the finest measures of its kind in force in the world

to-day. England was recognising its efficacy and following New Zealand's lead. With these schemes the country could now expect rural finance and securities to be placed on a. better footing than ever hofore, and this would be accomplished alter a. very few good years.

"I have mentioned these things," said Mr. Hawken, "because they are of such paramount importance to farmers, and I am speaking to farmers now. But the Government has not lavished all its consideration on one section of the community. For instance, we have sunk millions of pounds in the housing problem, with the result that a great many oeople have been helped to acquire their own homes. True, we are a bit behind with our loans and our finances are a little strained, hut without the work we have done we would not he able to claim, 1 as we can to-davi that in all the smaller towns in New Zealand there are plenty of houses, and in' some of the lugger centres everyone has a chance to "of bis own home. The greatest of our difficulties are behind us, and the pro. Mem is a much simpler one I ban in the •lavs immediately succeeding the war." "I can assure vou, ladies and gentle•iien," he said, "that every member o r the Government and of Parliament is anxious Io do what lie can for the neople, We are doing our verv best foi the small man. Of course, we are ac'•used of being all for the big men, bo' : f vou lonic at the position in the riodd mint von will be convinced that that : < not the ease. However. T feel sur< Hint we can leave if lo your own "onr 1 •l'ldgnienf in November next."---Otagc Daily Times.