FARMERS AND POLITICS

Poverty Bay Herald, Volume LIV, Issue 16705, 24 July 1928, Page 11

FARMERS AND POLITICS

NO UNITED PARTICIPATION DOMINION PRESIDENT EXPLAINS (Special to the Herald.) WELLINGTON, this day. That Mime form ol political action sliotnd be taken by the New Zealand Farmers' Union, but that it should not be in the form ol parly politics, was an announcement maSe at the annual I/omiiiion conference of the union, which opened today. In his presidential address, Mr, VV. ,1. Poison slated that at the last condolence the political committee was deputed to bring down a report to the present conference on the advisability of the, union entering the. political arena. Mr Poison added : " The committee unanimously reports that ;n its opinion the present political Mtnation is extremely unsatisfactory to tiie primary producer, and that, in order to improve this position, it is necessary that sonic form of political action should he taken. The committee does not think it wise to decide immediately what this form will be and proposes that it, should be guided by circumstances, for ibis reason it recommends that il be given power to watch events, and to report- its recommendations to the ltexl '.oiilet'ctice.

" 1 think it as well for me I" deal lir.st with this important matter, particularly as its unanimous decision was contrary to the apparent wishes of a large, number of delegates, at all events insofar that it has decided that it is not desirable that the Farmers' Union, as an organisation, should engage in party polities, and that any political action which members decide to lake, must, bo apart from the organisation as a union. REASONS FOR DECISION. ■■ Your committee felt that it could arrive at no other decision on investigation of the position. There are all shades of political opinion within the ranks of the, Farmers' Union. We have the senior whip of the. Reform Party, as the respected and popu'iar president of South Canterbury, on the one band, and on the otJier an equally popular member of the Labor Party, president of the sub province of Waikato. These illustrations will enable memubcrs to realise and visualise the impossibility of reconciling interests so widely and fundamentally opposed in any party political organisation created by the union.

'• To attempt any such step would undoubtedly drive out of the organisation men who have given it loyal and faithful service, but who have rooted convictions and are not inclined to sink them at anybody's bidding. Such men are entitled'to every consideration whatever a. majority of our members may think about politics, and for that reason,' if for no other, it would be tindesirable lo so radically alter a constitution that has stood Ihe led of nearly 30 years.

" I. for '">nc cannot uncleiia'kc the responsibility *>E r-ecoanmeiidiug n plan which would jiosMibty jeopardi.se its progress and I think I am voicing the opinion of the whole committee in saying this. It is possible that a mistake was made in deciding many years ago that the union should take no part in politics. It imi predecessors had followed the plan adopted by farmers' organisations in Australia and Canada, and framed a political constitution, it may be that similar results would have been obtained, but I for one am by no means satisfied thai tho Dominion as a whole can he best served by class legislation IVom whatever parly il email-: ates. It is desirable that, every class shall be represented in Parliament, and that in ii country like -New Zealand so largely dependent on primary production, the farmer should be largely represented if his interests are not to be neglected, but that is quite a different thing from government by one classin the interests of that class which is, to a certain extent, the case ill some, nf tin- States of Canada. We have seen, the disastrous effects of another form of class government nearer home, in Australia. Indeed, we have always opposed Mich a form of government, and if we are consistent we cannot endorse it here. TOO MANY PARTIES., " It seems to me that instead of attempting to carry on -an independent political campaign of our own, we should continue to keep the interests of the country as a whole in the forefront, while at the same lime bringing all the pressure we are capable of to bear upon Parliament to obtain sound legislation for the benefit of our industry and the country at large. This can be better done by co-operating with whichever ot the existing parties is prepared and best able to serve our needs and .support our platform. Such a plan has the additional advantage that it will not increase the electors' confusion by adding another to the parties already in the field. In any case, I believe, that, in spite of the ' differences between them, the interests of town and country in this Dominion are largely the same. Townsfolk are, beginning to realise that their prosperity depends entirely upon the prosperity of the primary industries and that whatever tends to increase the prosperity, of the farmers shows an immediate reaction in increased prosperity, higher wages and -less unemployment m the towns'! During the past year, by moans of well-organised meetings in many of the towns and cities, a great deal has been done, to make our fellow citizens understand the problems of the primary producer and appreciate the necessity for united effort on the. part of producer and distributor who, with the worker, contribute essential service to the community and the State.

Mr. Poison detailed the main planks of the union's political platform, winch, briefly, are closer attention to internal finance, 'better rural finance, and better traders' finance, relief from taxation, drastic amendment to the Arbitration Act, revision of the tariffs, national insurance on a universal contributory basis, .a properly balanced immigration policy by means of a board or some better constituted authority, and a scheme of unemployment relief on .sound efcono mic lines.

"Wo do not require a State Bnnk in tliis country if the existing banks will continue their useful service to the Staff at not too great a. cost," he said. "But it, is the duty of the State which controls the most important of them tc exercise a watchful supervision and not merely maintain an attitude of benignant acquiescence under a'l circum stances.

"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 required lo 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 ami in order that sound co-operative principles, without which the scheme cannot be a success. shall be lirmly established. It is diffi cull to get oiir legislators to understand the importance to nroducers nf a sound cooperative groundwork, and in no in stance is this more narticularly the case than in finance. The whole fabric of (be rural credit system is based on the co-operative group. Who is better aide In know the suitability of an applicant for such a' loan, his ability as a farmer,, his status, the productivity of his farm, than his neighbors? A sound p.'nn of

rural finance with thrift, hard work and intelligent oversight as its main planks, lias been built up in many pari.-, of the world by these means, which it was the aim of the Commissioners to see adopted here. . . , "There is no reason why the principle of intermediate credit should not be extended to trader.-. Indeed, such systems are already in use in several conn tries of Europe*. Conducted on sound lines, thev 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 deiit and our taxation, whether Government 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 Mime of the State .services were capitalised at their actual cash value to-day. In any case, the burden ot public debt in the shape of interest payable abroad, and this includes local body interest payable abroad, pins I he wist 'of our im ports, without taking any of the oilier factors into consideration, is sufficient to affect, the soundness of our trade posi-, tion, and unless the strict economy we ask for here is carried into effect, will disastrously all'ecl our future development .

"Relief from taxation implies both general and local taxation. The lour points of 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 burden is to fall equitably upon- town and country. The necessity for redirecting the stream of finance to rural securities needs no elaboration by me. Every farmer knows the effect of such a system as exists in New Zealand, although not all know thai the reason is that over 80 per cent, of tho total income of New Zealand is paying less than 40 per cent, of the taxation (Mr W. D. Hunt's figures), through the application of the tax to large companies which, though generally owned by a multitude of small investors, arc taxed on the graduated scale and compelled to add the increased tax to their working costs, and collect it Ivy higher charges to their customers. t THE ARBITRATION 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 settlement of the most important question before it —how best to amend the Act —threw a great deal of light on the working 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 wore designed, while removing the great blot of one-sided compulsion from the- Act —so that the Court's use would lie 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 possess at the present.

"Your delegates, having agreed on your behalf, as the result of long consultation hii committee, on the proposals submitted by the united employers, those proposals have now been' substituted in this platform for the original proposals 'which provided for', practically the same relief under the compulsory system, that is now asked. for under the optional system. "There is no question that the establishment o'f such a system would make for better working conditions in.industry. It would result in better re-' lations between workers and em- : plovers and do more to prevent strikes. It would adequately protect trade unionists -whose organisation would be unimpaired, and would put employers on their toes to see that no action of theirs gave excuse for a strike. "I desire to again emphasise the fact that none of the existing machinery of the Arbitration Court is disturbed. Negotiation is, however. substituted for compulsion—a plan which will assuredly not prejudice the position of the workers, and will be more acceptable to employers generally. It is satisfactory to know- that 'a united body of employers represented as strongly' as possible their opinion that any further extension in practice of the arbitration system to the primary industries is impracticable and unwise.

"While ivc are agreed that there arc industries which cannot be established nor maintained without sub-' stantial help, we are not agreed as to, the form that assistance or help should take, or whether in every case it is desirable to provide assistance at all. The form in 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 those industries which are natural and essential to the 'Dominion may receive the assistance to which they are entitled. There is already machinery for a 'Board of Trade in New Zealand. Its functions could he widened to include tariffs and a body of men appointed who would be worthy of the -confidence of the community to undertake the responsibilities. ''DEATHBED KEBENTANOE'' "The Minister of Lands has announced that he is bringing down a new land settlement policy. 1 am personally glad to hear it, although it smacks something of deathbed repentance, because it shows :>. belated conversion to the views of the FarmersUnion, and is an admission of the reasonableness of our urgent demands for a more enlightened laud settlement policy. "What is necessary in Xcw Zenianu 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 thai can still be settled, and will be settled sooner or later, in spite of whatever obstacles licar-siglited governments may interpose.

"It goes without' saying that we want closer settlement and more extensive settlement in this country, but more particularly and urgently we want relief ifnd assistance to those people who are the victims of our deteriorated lands. II is essential to inorease and even if the State is compelled to. forego its taxes and assist in the tight to restore such land to a productive

basis, the task should be undertaken, j "Any new land settlement policy should include plans for the rehabilita-; tion of our deteriorated lands, a scheme 1 for the early settlement of our secondclass lands upon a group system under 'Government supervision, a p ! ian 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 receivea reasonable remuneration for their work, lenrn to become farmers, and ultimately lie assisted to take their place on the land."

Under the head of social legislation, Mr. Poison dealt with unemployment, immigration, and the Workers' Compensation Act. In conclusion he said:

"We believe that the adoption of the ■planks of the policy we have outlined will enormously assist, not only the primarv 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 govei'imient 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 progrf ss lies along new lines which must be Said on solid foundations, and that efficiency, progress flnd fraternity are the stepping stones to that high place in prosperity these fortunate isles should hold."