THE FARMER AND THE TARIFF

Timaru Herald, Volume CXLIV, Issue 20966, 19 February 1938, Page 4

THE FARMER AND THE TARIFF

FUTURE OF SECONDARY INDUSTRIES RECENT ATTACK RESENTED By Telegraph—Press Association WELLINGTON, February 14 The New Zealand Manufacturers’ Federation has issued the following statement on the discussion on tariff protection and the farmer with special relation to the financial assistance the State has afforded the farming industry. “Once again,” says the official spokesman, “the manufacturing industries of this country have been attacked by the farmer. We refer to the statements made by Mr J. H. Furniss in his recent debate with the Hon. Mr Nash on the respective merits of the guaranteed and the compensating price systems. “On previous occasions, the Manufacturers’ Federation has deplored the occurrence of anything of this nature between the various interests which, as a composite whole, provide the national income of the Dominion. There is no necessity for it. The national interest will best be served by a proper fostering of both farming and manufacturing interests. It is well known that—put- , ting the position in plain terms—the farmer has been the pampered child of a country which, everyone admits, benefited greatly from its primary production. However, the primary industries have had a great deal back in return. Help for Farmers A few years ago the acting Prime Minister, the Hon. Sir Alfred Ransom, in reply to complaints from farmers, showed that direct assistance given to them to counteract the effects of the depression in the farming industry alone, amounted to over 14 million pounds annually. This, if anything, he added, was an understatement. In proof of his statement, he gave the following impressive list of figures:—

Raising rate of exchange .. 9.000,000 Reduction of interest on farm mortgages 1,600.000 Reduction of land tax .. .. 1,000,000 Remissions under Mortgagors’ Relief Act 700,000 Assistance Unemployment Fund 250.000 Assistance to local bodies from Unemployment Fund 900.000 Road subsidies to counties.. 200,000 Rebate on country rates .. 200,000 Reduction rural local bodies interest 150,000 Subsidy fertilisers 100,000 Freight concessions— Lime 70,000 Fertilisers 115,000 Farm produce 90.000 Assistance to fruit growers 8,000 £14,383,000 Co-operation Needed “After receiving benefits to this colossal amount, the farmer cannot justify in the eyes of the public his attack upon the manufacturing industries which, under a heavy handicap, are doing their share for national prosperity. The manufacturing industries have on no occasion complained of the extraordinarily generous treatment handed out to the farmer. On the contrary, they recognise that national good must arise from this expenditure on assistance for the primary industries, just as protection of manufacturing enables it to extend and give permanent employment to an ever-increasing number of our men and women. “At the Ottawa discussions, the British Board of Trade stated officially “Britain is satisfied generally with the New Zealand tariff, and does not desire its being lowered.” To the best of our knowledge, Britain said this about New Zealand alone. The manufacturing industries merely ask that the position so fairly accepted by England at Ottawa be continued by tariff adjustments in respect of the higher costs placed on industry by the latest social legislation.

“The Hon. Mr Nash, in his reply to Mr Furniss, dealt with the need for tariffs, and said that, if these were dropped, pensions and education votes would have to be cut. Mr Nash added that the country could not afford to abolish tariffs; if the country devoted itself to agricultural pursuits only, all the young people would have to be sent overseas to find work. Mr Nash concluded a crushing reply by stating that the manufacturing industries are

essential to the welfare of the country, and must be developed. It is a pity that the fanner does not realise that when he attacks the manufacturing industries he merely draws attention to the fact that he himself is the “petted boy of the family.”