AN EXPORT BONUS.

Star (Christchurch), Volume XLIV, Issue 369, 10 March 1932, Page 14

AN EXPORT BONUS.

Taranaki Member Against High Exchange. DISTRIBUTING THE BENEFIT. (Special to the “ Star.”) WELLINGTON, March 9. “ What effect is it going to have on the discussions at Ottawa if our exchange goes up?” asked Mr H. G. Dickie (Coalition, Patea) in the course of a very interesting statement- on the subject from the viewpoint of a country member in the tlouse. South Africa and Canada, he pointed out, were on a gold basis, and these countries would have a perfect right to draw attention to the fact that Australia and New Zealand, assuming a 30 per cent rate of exchange prevailed, were putting up a barrier to free trade with Britain to the extent of a 30 per cent surcharge against her goods. Dairy Farmers’ Position.

High exchange would be regarded as a bonus to our producers, many of whom were in desperate straits, but to give a bonus through high pegged rates would mean that one portion of the farming industry which happened to be in a fairly good position would receive exactly the same assistance as a section almost on the verge of bankruptcy. All our products were on a low level, but the dairy farmer was in a better position than the sheep farmer. An exchange rate of 30 per cent would mean only a halfpenny per pound extra, for the wool grower, but it would enable the dairy farmer to get twopence a pound extra for his butterfat. “ The fairest way,” continued Mr Dickie, “is to give an export bonus according to the state of those industries, although at the same time I have no objection to exchange running free.” He agreed with the suggestions that a false high rate would- mean an increase in the cost of living.