PRIMARY PRODUCERS

Poverty Bay Herald, Volume LXII, Issue 18758, 15 July 1935, Page 9

PRIMARY PRODUCERS

GOVERNMENT HELP A GREAT DEAL DONE MR. MASTERS GIVES FIGURES (Tor Press Association.) NEW PLYMOUTH, last night. The extent to which assistance lias been given to the fanning community, particularly during the depression, was outlined by the Minister of Commerce and Industry, tile Hon. Iv. Masters, in an interview. In 1928-29 the national income was estimated at £150,000,000, said Mr. Masters, and the value of farm production reached the record total of £82,000,000, while exports were valued at 0.257,110,000, also wholly farm produce (about 94 per cent.). At the end of 1951-32. the national income had fallen to £97,800.000, the value of farm production being £53,000,000, and the value of exports £33,9C0,CC0. Ibis showed the vital importance of the export price. The domestic prices of exportable farm products tended to fall in sympathy with export price, thus reducing still further the farmers’ total income. HIGHER EXCHANGE RATE The Government’s policy, said the Minister, had been directly or indirectly towards restoring farming to a profitable basis. The raising of the exchange rate was a means of grappling with the problem. The measure had as its main object Abe diversion of an increased proportion S>f the national income, to the primary tjiroducer to enable him, as the main to the country’s welfare, to weather the storm. Without a healthy primary industry, the country would have been doomed. It also had the effect of preventing further inflation. It had expanded the national income and spending power by at least £10,000,000 per annum, contributed to increased business activity, ensured the value of securities being maintained,' permitted increased public revenue by increasing the taxable capacity and had not raised the cost of living. The 20 per cent, reduction in interest, continued the Minister, would mean a saving to the farmers of approximately £1.500.000 per annum. FERTILISER SUBSIDIES Since October, 1951, the Government had paid in fertiliser subsidies £385,053. Lime was carried free up to 100 miles. This was equal to a subsidy of £76,000 last year, and in six years the consolidated'fund had paid to railways in this connection £350,589. For similar periods the concession on the carrying of fertilisers was £115,812, and £655,040 respectively. Freight concessions on primary produce in 1933-34 totalled £156,437, and in 1934-33, £48,196. Fanners, had also been assisted by the use of unemployed on farms by wage subsidies. A special subsidy of 12£ per cent on rates in 1931-32 amounted to £253,000. For the three years ended March, 1930, the subsidy derived from the main highways fund was paid on the average annual amount of rates collected. A rebate was given .in 1934-35 amounting to £IBO,OOO. In addition, the Government subsidy on rates totalled £200,000 last year. - , .'reduction IN INTEREST In 1933 the Loans Conversion Act imposed a flat reduction of 20 per cent, or to 44 per cent., whichever was the higher on local body securities. Local body debt domiciled in New Zealand amounted to £43,000,000 at rates varying from 4 to 7 per cent. The interest redaction, .therefore, was expected to saVe about £400,000 per annum. “The Government has done a great deal for the farmers,” added Mr Masters, “because it realised that it is essential to maintain production and bridge the gap . between . farmers’ costs and the prices received in overseas markets.”