PLIGHT OF PRODUCERS

Waikato Times, Volume 112, Issue 18777, 27 October 1932, Page 2

PLIGHT OF PRODUCERS

LOW EXPORT PRICES. DOMINION’S ECONOMIC PRICES. ANALYSES BY MR D. S. REID. (Times Correspondent.) WELLINGTON, Wednesday. New'Zealand’s economio problems, more ' particularly those of Immediate concern to the primary producers, were discussed by Mr D. Stewart Reid (Government —Raglan), when speaking during the’debate on the Financial Statement in the House of Representatives this evening. Mr Reid said the principal cause was the low. prices they were receiving for their exportable produce, and until there was a return to better prices or a great lowering of costs to bring them more on a parity with what the' farmer was receiving for his- produce there would be no prosperity in the Dominion. Mr Reid said oiTe could not honestly say that the coming year would be a brighter one than the past or that they were well on the way to prosperity., Undoubtedly there was not the same dlspondent feeling that there was some time ago,, but prices did not warrant them in being optimistic.; In spite of the fact that the very best • brains in the world had been endeavouring to solve..their problems, and had failed to do'so,. there were people inside and outside the House who claimed that if they had the' opportunity they could bring prosperity to New Zealand in a very short time. His own opinion was that if those individuals had the opportunity they would be very much wiser men in 12 months’ time than they jvere at present. ; Reform of Ourrenoy.

“I do not believe,” Mr Reid continued, “that any reform in' currency or in our. monetary system within this Dominion could possibly overcome-our difficulties. The solution of them must come from a far'wider field than' this - Utile.-country.'.:. .1 believe' that’the currency is one of the problems, but it is by no means the main cause of the depression to-day. The ' principal cause is the low prices we are receiving for our’ exports, and until there is a return to better prices or a great lowering of costs to bring them more on a parity with what the farmer is receiving for his produce we are''riot'going to have prosperity In this Dominion. “ i do not think that we have to look very far afield to* find the cause of our position to-day when one con-siders-that our exports during the past t-year were considerably over £20,000,000, less; in value than in 1929,; and "prior to .this local bodies and the Government borrowed large amounts of money, totalling anything- in the vioinlty of £12,000,000 to £15,000,000 a. year. When we add to that amount the fall in export values, making a total of some £35,000,000 a year is it any wonder that our small population Of, 1,500,000 finds itself in diffleuitißs.” -' • ' ’ ' " Secondary Industries. Discussing the secondary industoies Mr Reid, said he would like to see them prosper, because he recognised that if they prospered a large numbef of men at present unemployed would be .absorbed in them.- With many of them, however!, something must ’be wrong. Take the New Zealand woollen manufactures for example. The people overseas could purchase New Zealand wool, pay freight on it —and Incidentally pay freight on the dirt which was in the wool—manufacture the wool into clothing, pay freight on tne manufactured article, pay a heavy duty on it, and yet compete with the Dominion woollen manufacturers. It seemed there was one of three causes for' this state of affairs. New Zealand manufacturers could not be Using up-to-date methods, or the employees were receiving higher wages than the workers overseas, or the employees were not giving the service that was given by the overseas workers. Whatever might be the trouble it' should certainly be rectified.

Land Settlement. 'Reference was made by Mr Reid to the question of land settlement. No land settlement scheme, he said, could be carried on at present with success at high rates of wages. At the same time, however, he believed it would be far better to spend a good deal more money' in settling people on the land. He knew a loss would be Incurred In carrying on such a scheme, but a greater loss was being Incurred on unreproductlve works that had been in operation. The opinion was expressed by Mr Reid- that the Unemployment Board’s scheme whereby money Is advanced to farmers to enable them to erect dwellings for share-milkers was going to be a great success. The scheme, •was one of the best the board had undertaken, it was going to- be good for the unemployed man, good for the farmer, and good nsr the country. A food many unemployed married men ad been placed during the past year, and he was sure a great many more would be placed next' season. The scheme provided for a cheap cottage and the farmer had to pay off the amount of the Government advance in 20 years. Thus the unemployed man would receive work, the farmer would get another man on his land, and the Government would have Its money repaid.

Guaranteed Produce Prices. Statements made by several Labour speakers ■ that if their party was in power It would guarantee the farmers a fixed and payable price were referred to by Mr Reid. He would like to know, how the Labour Party would : find'flic funds and what it considered a ‘payable price for the farmers, His idea of a- payable price was a shilling and threepence per pound for butterfat, and sixpence per pound for lamb. If they took those prices and set them against the prices they xvero receiving to-day there would be a difference of some £10,000.000 or £15,000,000. Thus there would be a loss of that sum to make good. How would the Labour Party make up dial money? Was It thought the rest of the community would stand for that for any time? He ventured (n say that It could not be done, nr rather It could be done for a very short lime only. Mr W. Nash (Labour —Halt): What Is the alternative? Mr Reid: That is another matter. 1 say the scheme is unworkable. Further than that, as a farmer 1 should not like to take advantage of a scheme of the kind if 1 knew that it was going to be detrimental to the rest of my fellow-men. Mr Nash: Is £10,000.000 to £15.000,000 the amount required for the farmer to make his work pay? Mr Retd: Yes, or thereabouts. Potcol Taxation. Exception was taken by Mr Reid lo the recommendation of the National (Continued in next Column.!

Expenditure Commission that the petrol tax should be included in the Consolidated Fund. That revenue -was collected for a special purpose and it should he used for that purpose. It was collected for .making roads and the derating of country lands. A great many people, especially city people, seemed to think that the farmer was trying to evade his responsibilities. The farmer was paying in full, along with other motorists, by way of petrol tax for the use. of the roads* There was a strong feeling throughout the country In favour of derating, although he would not go so far as to say that, there should he total derating. That, at present, might he going too far. What the farmer was paying in the way of county rates was out. of all proportion to what the rest of the road users were required to pay. ]n conclusion Mr Rrld made an appeal to the Railways Board for a reduction in the freight on live stock During the war period the freight on stock was doubled as a war measure and tbo increase then made had never hern removed.