NO MORATORIUM

Taranaki Daily News, 22 December 1930, Page 11

NO MORATORIUM

CABINET MAKES DECISION EXAMINING DAIRY INDUSTRY ' r z . EXPERTS TO BE APPOINTED PUBLIC FUNDS SCRUTINISED DEPRECATED ■ ’■* . : " ' ' ' ■ ' ... ■ ’ By T«!«grapk—Pr*»» Aaaoelatloß. < i' >.’ •' ? Wellington, Dec. 20. ■ / The decision of the Government to im veetigite,'the dairy industry was an* nounced - to-day by the acting-Prime Minister (Hon. E. A. Ransom), who also stated that after - careful investigation Cabinet had come to the conclusion that it-would be unnecessary and unwise to enforce a moratorium. Attention was drawn'to the big- falling off in revenue and the fact that charges on the Consolidated Fund could not be shortened within the financial year to . meet the decline. As a result public finances had been subject,to the closest consideration agdi scrutiny. ■ •“The'Government has had under consideration the general position i of the country' in all its ‘ aspects,”, said Mr;, RaiMO*; ! ,“apd : while’it recognises the grave- difficulties of the situation due totoireumstances ■ pnd conditions perhaps''unprecedented" in the history of New Zealand it;deprecates any attempt td exaggerate the position or to stampede the country into hasty and illconsidered; solutions. “Im the first. place on ..two questions that'• have ' excited discussion in the Press and’ at conferences and even elicited tentative pronouncements frojn public men—namely the fusion of poli,tie»l’ parties and, the formation of a national Cabinet' ■ and the early sumy.Hiohing bf' ; Parliament—Cabinet feels that these are matters that must await •■the return of the Prime Minister, who is entitled to a dominant voice in their determination, so far as his Government • and political party are concerned. The Ministers do hot consider ah immediate assembling of parliament either necessary or wipe at this juncture. '’ **l have recently announced?that view of Cabinet,” said Mr. Ransom; “and the Prims . Minister has definitely declared from England that a. moratorium is un- _ depirabje.,: These views , are supported By the State loan departments which provide iiearly a half of the total amount of finance for farmers and : which «ay there, is not at .present such ; a .pressure from their clients as would , justify,'the application of a moratorium, even if that,hind of, remedy were , desirable,,which they emphatically deny.

DIAGNOSIS' OF DAIRY INDUSTRY.

: “Thinking a; diagnosis of .the condition of each.- section of industry necessary arid that it should be carried out '.in\a e*no .arid practical' way, the Government lias as a beginning approved of the appointment of a committee of experts in the dairy industry which would determine the extent to which! that industry is, enibarrassed and suggest the form of-assistance required. : . . - “The- trouble may be far greater than i» realised’ or much less than general statements mrike, but. 1 It is recognised to. be serious enough owing to the severe fall - in - the price, of - dairy produce, but. the perturbation of many dairy farmers inay be rather , in anticipation of the ' effects-upon , their finance and holdings of the slump in pricea than in conse- < quence of extreme financial pressure applied by mortgagees.“The ; committee \Vill consist of men who are intimately acquainted with the . position, of dairy farmers in their respective districts. The .Department of Agriculture is communicating with- men whose -names have' been suggested. The ’ commit tee • willbe--' asked. to meet in Wellington . ea rly jn the new year to carry put'-its investigations -with all despaiwji. itlis hoped that on the. Prime Minister’s return the actual position . with.’Cabinet.'recommendations will be readyfor,'.action... .‘, z - “Those in the pastoral industry have made no direct; approach to the Government for assistance. ■. DIRECTORS’VIEWS. . . “The Government took the precaution .ik-month ago to consult with the Gov'erpmept .directors on the Bank- of New Zealand;, who advised that not only was a moratorium undesirable but unnecesa»ey at "present. . , /‘.“The Government'-gathered that al- ■ thqugjiA banking’ figures showed the etrain on the resources-of all banks, accentuated in cases,by the greater finan-. ci#i difficulties.pf Australia, all possible s teps - ..were being .taken ■ to maintain the - strength of .mercantile .firm s and station ■ agents to support land-owners and to farmers where' they, had exercised erire and economy in the management of -their farms. ! The Government and ’ the heads of financial institutions and business men recognise that farmers who have oyer-reached themselves in thb.purchase 'of ' estates or in expenditure and have had difficulty in normal times 'in meeting current obligations wjill experience , extreme hardship. “The Government is prepared ; to meet delegations of each branch of industry which should be ready to state its actual and detailed difficulties and its suggestions for the minimum assistance required of the State, “The position of the public finances is appreciated by the Government and tag been the subject of the closest scrutiny and. consideration. Revenue has fallen in a much greater ratio than expenditure due to the' same causes that ' have affected, all-branches * of industry and more especially the primary industries.! : ■' . ■ “The charges on the Consolidated Fund cannot be shortened within the financial' year to the extent that will take up the decline in revenue owing * to the heavy rigid annual outgoings, for interest,’ pensions and special permanent items that are the accumulation of a generation of. Parliamentary and Government action in annual appropriations, for .services. •„ .■ ■ “The first overhaul of the departments made last pi on th at th« earliest available moment after the close of the session revealed the extreme difficulty in the face of sectional demands by institutions and the. public in curtailing, deferring or cancelling the expenditure o; items voted by Parliament. Econo- • mies proposed in certain departments such as and working railways will riot be materially effective within the financial year.” . ,