FINANCE FOR FARMERS

Poverty Bay Herald, Volume LXII, Issue 18758, 15 July 1935, Page 11

FINANCE FOR FARMERS

SIMPLER METHOD URGED GOVERNMENT GUARANTEE GISBORNE RESOLUTION A simpler form o£ financing farmers was unanimously urged by the Gisborne ward dairy conference to-day, and it was. also proposed that the Government should guarantee loans made- by dairy companies. Resolutions to this effect were carried after an address had been given by the chairman of the Dairy Board, Mr A. J. Murdoch, M.P. Mr E. R. Renner, chairman of directors of the Okitu Co-operative Dairy Company, Limited, said that all factories were aware that they must turn out a quality product, and the main part ot this problem was with' the individual farmer, mailv of whom were not financially able to do anything, lie moved ‘‘‘that the Dairy Board recommend to the Government that the procedure with regard to the application for' Government moneys for improvements to dairy farms be simplified so that, all the applicant. has to efo when applying for a loan is primarily to (ill in a. request- that he wishes a certain amount for certain improvements.” A Much simpler method would lav of great benefit to those farmers not used l to Government red tape, particularly those who were inclined to Uo illiterate. It. was the farmers’ job to attend to his own particular work and not to unravelling business details. Mr. T. R. Jones seconded the motion, and said that it would not be fair to burden the factory officials with any of Ah,e concerning the applications. ■ Mr. Murdoch, in reply, said that the jimethod proposed would not be biMnesslike; for instance, the Government would wish to know what security the farmer could offer. He had suggested that money should be given to needy borrowers at a very low rate of about par cent., and he had been assured that this would be looked into. Mr. J. 11. Sunderland, secretary ot the Kia Ora- Co-operative Daily Company, limited, said that farmers who desired improvements were generally unfinancial, and dairy companies, were being asked to guarantee the loans. He proposed that the procedure should be the direct opposite, and that the companies should make the loans if the Government would guarantee the loans. At present, dairy companies were facet! with the possibility of being prevented froth making deductions from cream cheques irt repayment of loans, tinder the present scheme, the Government wished to place the whole responsibility on to the factories. He moved an amendment that in view of the unfinaneiaF position, of many farmers desiring leans, the companies could not guarantee loans, but that the Government should accept responsibility, and the machinery for making the loans should be placed under the Rural Intermediate Credits Board,' in order to facilitate the speedy 'granting of advances, this proposal' to be submitted to the Commission of Agriculture. It was agreed to make the motion and amendment "separate motions Sonienobjeetion was raised to involving the Intermediate Credits Board, and eventually ME M. Doyle moved, with Mr. J. 11. Sunderland’s support:—“(l) That cm the matter .of loans to dairy farmers, the directors of the companies arc of opinion that the companies are quite prepared to lend money to farmers who require the said money if guaranteed by the Government; .and (2), that the matter of loans to effect necessary improvements is urgent and that the matter bp placed before the Dairy Board, which should place it before the Com- ' mission, of Agriculture with a view to expediting same.” This, which replaced Mr Sunderland's motion, together with Mr Renner's first motion, was carried unanimously. Mr A. Littlejohn moved that steps be taken to standardise dairy company balance-sheets. This would help to simplify factory workings. After Mr Donald had seconded it, the motion was carried without discussion.