DAIRY INDUSTRY’S NEEDS

Taranaki Daily News, 4 December 1930, Page 11

DAIRY INDUSTRY’S NEEDS

DESIRE FOR MORATORIUM SESSION OF PARLIAMENT URGED. FARMERS APPEAL TO MINISTERS. By Telegraph.—Press Association. Wellington, Last Night, The serious plight of the dairying industry as the result of the fall in the value of butter and cheese was stressed by a deputation representing the National Dairy Association and the Dairy Export Control Board to the Aqting Minister of Finance, Sir Apirana Ngata, and the Hon. R. Masters to-day.

The president of the "National Dairy Association (Mr. A. Morton) said New Zealand at present was passing through one of the most critical periods in its history. The whole position was exceedingly serious and advances on produce had dropped as low as 4jd a lb on cheese and 9d on butter. It was in, the interests of the Dominion as a whole that farmers should keep up their production, but under conditions as they existed tq-day that would be a very diffi-cult-matter. They still had their charges such as principal, interest and rent to pay. He ventured to say there were many farmers . who would be unable to keep going, even if they were relieved of the necessity of .paying interest and other charges. It was urgently necessary. that the Government should take some step to bring relief to the .dairy farmer, for if farms werb allowed, to go out of production it would be a very serious matter for the country. They were making the suggestion that the Government might consider the reenactfnent of the moratorium which existed during the war. Conditions to-day were as bad, if not worse, than they were in the war years.

Sir Apirana' Ngata said the deputation was suggesting-a most extreme remedy. Before the Government could enact a moratorium it would have to consider all the interests that would be affected. Mr. Morton said it was for the Government to decide on the remedy. If a moratorium was not considered advisable then some other course coulcl be followed, but the industry had to be assisted. The chairman of ' the Dairy Control Board (Mr. W. A. Torns) said the members of the board were not satisfied that the reinstatement of the moratorium would be the right course to follow, but they were satisfied that there was urgent need for some action on the part of the Government in order to assist the dairying industry. •...,/ •' Mr. F. 'H. Anderson, chairman of the Cambridge Dairy Company, said, there was necessity for a moratorium or a general lowering of the interest rate. If interest were' lowered that would enable a number of farmers to capitalise their interest. and thus get over their pi'esent difficulty. Ur. Dynes Fulton, chairman of the New Zealand.. Co-operative Dairy Company, said to-day there existed .a great possibility of men being pushed off their faiid. In many cases mortgages were falling due, and" doubt as to whether the mortgagees would meet them was causing many men to become depressed. They were prepared to admit that the passing of a moratorium was a drastic step, but there was no doubt something had: to .be done if the dairying industry was to be saved. Some scheme was needed that would give confidence to the dairying in? dustry. ■ /.' A MUSSOLINI’S OPPORTUNITY., Mr. J.- R. Corrigan, a member of the Dairy Control' Board, said that what was needed to-day was a MussoliuLlike Government that would say definitely it was going to y stand by the fanners in their difficulties, and see that they, were not filched in .any Way.', Mr. W. D. Hunt, another member of the Control Board;, said that under the war-time moratorium the only man who was protected was the man who paid his interest regularly, and the man who did not pay his interest received no protection. It was obvious therefore that it was the strong man who was protected and not the. weak. It would be a mistake to restore the moratorium. What the Government really ought to do was to get down costs, and-it could best do that by starting, with the Government machine.

Mr. J. G., Brechin, Pahiatua, suggested that the.time had arrived for Parliament to be called together. . It. should meet in February to deal with' the situation. Sir Apirana Ngata said the members of tlie deputation would realise that he and Mr.'Masters were not in a position to say that day what the Government would” do. The Primo Minister had the right to be consulted as to whether Parliament should be called together or, not. The present deputation was',,the first official intimation the Government had had of the plighVof the dairy -farmer/; and whether the calling of Parliament together was the remedy or not would have to be thought out. They would have to explore every other method first'. • The Government would take the matter/ into earnest consideration. The Acting-Prime Minister was expected back next week, and in the meantime they would try to work out some plan to place'before him. Other primary industries were in a similar, plight, and it had been suggested that the Government should advance £1,500,000 to the sheepfarmers. What would the dairying industry need? " Mr. Brechin: * £10,000,000 to bring them up to their proper level. Mr. Corrigan said dairy farmers would be £6,000,000 down. .. . Sir Apirana Ngata: Well, you cannot expect the Governnicf.it to advance that. We may be able to get down to something less-than that... His personal experience, he added, was that some mortgages were being called up and it was possible others would be called up in anticipation of -a moratorium. The Government would consider setting up a small working committee. A GOVERNMENT SAFEGUARD. Auckland, Dec. 3. Asked-to-day if the Government had considered a moratorium as suggested by a recent meeting of .farmers the Hon. A. J. Stall worthy, Minister of Health, said the. terrific fall in export,prices had produced a crisis ’ that must be faced. ; A moratorium was one of. the last weapons to ! be ltp repercussions were sometimes more disastrous than the immediate evils it sought to remedy. The Government-, had reason -.to feel assured that it would be . the ■ banks’ policy to assist both the primary and secondary industries over a difficult period. ' : The inexorable demands of the times would make it’hard-for the man with one big farm or more plus city .and seaside residences, sundry speculations, two motor-cars and. a bank overdraft. The bona fide farmer or the business man with a good reputation and a reasonable prospect was not in the same category. He had a fair claim on the financial institutions which was likely to be met by the whole resources of the Government being used to safeguard the position.