PRIMARY INDUSTRIES

Poverty Bay Herald, Volume LXI, Issue 18484, 24 August 1934, Page 9

PRIMARY INDUSTRIES

MABIBT COMDmOWa I I • ■■ -* • ; REVIEW BY MINISTER <;{ r~ :hV- ? % !it yv IMPROVEMENT SHOWN (FerllamenUry Reporter.) ‘WELLINGTON, this day. Notwithstaiiding the recent adverse development in connection with the' ijuurketing abroad of, the Dominion’s primary products, the Minister of Finance, the Bt. Hon. J. 0. Coates, in t||&t>urse of his Budget statement in the IMse of Representatives last night, adopted a generally optimistic tone, referring to the increase in the prices being obtained for wool and meat, in particular, and to the fact that the gap between costs and prices had been largely world conditions generally,” says'’ the Minister, “there can be no doubt that- the past year witnessed substantial; progress towards economic recovery. The movement is more marked ini Soma countries than in others, with th® United Kingdom well in the lead. Oh grounds both of sentiment and selfinterest this is gratifying to New Zealand, in that the United Kingdom still remains the principal market for our large export trade, which, of course, is a major factor in our economic recovery. , “The progress already made overseas k. redacted In the increase in our export price*. The recovery in wool prices was spectacular, amounting to a substantial increase over the previous year. This nipt only eased the difficulties of woolgrowers, but put fresh heart into the whole community. At more recent sales prices have receded a little from the p&k level. -

BRITISH QUOTA PLANS "Prices of meat also rose considerably during last year, , conditions in ~ the United Kingdon l meat market showing a gratifying improvement following the Qttawa Conference in 1932. The index number of our export prices increased by 40 per cent. At the present time His Majesty’s Government in New Zealand, in close association with the New Zealand Meat Producers’ Board, is discussing with His Majesty’s Government in thp United Kingdom the future of our meat marketing. a “The prices of dairy produce have, unfortunately, remained at a disastrously tar level. . At the same time, the daily gtuoe marketing situation in the 4d Kingdom has been under anxious tiiy by His Majesty’s Government in United, Kingdom, and steps have been taken' there to render assistance to milk producers. . Haying regard to the urgency and the complexity of the problem, and to the need in the national interest for laying solid foundations for our future iri this industry, the New Zealand Government set up a Boyal Commission,''the report arid recommendations of which 'will anortly be available. -*«Ma*t and dairy produce together acoount for riot less than 65 per cent, of itar Zealand’s total export values. For this reason we are vitally concerned in the steps that are being taken m the United Kingdom in the direction of asrVifif and planning her agriculture. It is a development goes to the heart of our own economic life. The present Mtdency in the United Kingdom, as dsewhere, is to seek a greater degree of self-sufficiency in food supplies. Production of meat and dairying are types of farming that have long existed and can be extended in the United Kingdom, and ft ad happens that these are the particular products in which New Zealand has 'specialised.

. JNTEHflffAli STEADY parttucedafavorable eeason, resulting in "% iubetaatttl inert* »e in butterfat produotiaa and a record lambing in sheepfaming. The yield per acre in gramgrowing «u appreciably above ihe aver* age, while there has been considerable increase in pig keeping. The Dominion’s fatten pork exports for the past three calendar years were: 1931, lfrff7Bcwtj 1932, 143,W0cwt; 1933, 321,338 cwt. “In the general interests of the country the assistance given to farmers in the form of subsidies on the carriage of lime and fertilisers,' and also on the manufacture of fertilisers, has been continued.. I may add that, after careful investigation of the position of the fertiliser companies, the. Government found it necessary to take a firm stand in regard to the •effing price of fertilisers. Where necessary, reduced railage freights on farm produce have also been continued, “The benefits received from the inersase in the prices of a substantial proportion of nur exports, combined with the raising of the exchange rate, have substantially bridged the serious gap between costs and market prices for a gnat many of our farmers. Since 1932 this export price indices show an average rise of 20 per cent. On the other hand, prices internally have remained remarkably stable, the index for wholesale priods showing an increase of 3 per cent, and retail prices a decrease of 3 per esnt.; in fact, since the ratting of the liondon-New Zealand exchange rate retail prices have been stabilised, not increased. Despite the imposition of the sales tax, and the increased exchange rate, this increase above the July, 1914, level remained at 26 per cent, and Z? per cent, throughput the year 1933.’’