POLITICAL OUTLOOK

Waikato Times, Volume 118, Issue 19631, 18 July 1935, Page 9

POLITICAL OUTLOOK

AN ELECTOR’S REVIEW.

DAIRY COMMISSION'S REPORT.

THE MORTGAGE CORPORATION

(By J. H. Furniss.)

Curiously enough the report of the Dairy Commission stressed the fact that the immediate need of the dairy farmers was a drastic reduction in costs to balance the drop in export prices, yet the inevitable result of the carrying* out of the commission’s recommendations would have been a further increase in costs: with no assurance of even a remote benefit in increased returns.

While dairy farmers, through the Farmers’ Union, dairy companies, etc., protested strongly against the proposal for inspection and slaughter on the lines advocated, and against the financial proposals; they regarded them as relatively unimportant in comparison with the proposed “Council of Three.” It was realised by all thinking farmers that to place'the dairy industry under the absolute control of such a politically-appointed oligarchy was to ■strike a fatal blow at all co-operative enterprise; virile growth is impossible under the alien hand of the political dictator. Opposition Ignored. It became speedily apparent that the Government intended to give effect to this portion of the report, despite all opposition. The Agricultural Emergency Powers Bill was introduced, and every effort was made to force it through Parliament at once. The usual procedure when dealing with any important and contentious legislation was ignored, on the plea of urgency. The Government staled that the dairy industry was facing a crisis and relief must be given without delay. To appeals from the Industry for delay to enable consultations between farmer's’ representatives to take place, and their views to be placed before the Government, Mr Coates replied that the opinion of the industry would be sought AFTER the Bill was passed. It is significant of the strong opposition by the industry that several Coalition members became feebly rebellious. Mr Coates, however, was entirely Unperturbed, and it was a very futile effort even for a political rebellion. The Bill was carried through and the Executive Commission, with the addition of the Minister for Agriculture, was set up, with supreme control of the dairy industry. It is true that so far no attempt has been made to enforce the recommendations of the report regarding the slaughter of cattle and the multitude of other objectionable proposals, whereby a “quota" on dairy produce was indirectly to be given effect to. As the Minister said in his speeoh at Raglan, however, that “the commission’s report was a counsel of perfection" it is possible that enforcement may be delayed until a more opportune time politically than on the eve of an election.

Dairy Control Board.

The alteration of the method of electing' the members of the Dairy Control Board has resulted, as was generally expected, in a board whose personnel should meet with the approval of the Government. The position Is viewed very differently by the suppliers, who have been disfranchised. As one prominent leader In farming affairs cynically predicted when referring to the setting up .of the Dairy Commission, "It appears to be rather a cumbersome method of getting rid of Mr Grounds." Tho general public will be gravely misled if they assume that the result of the Dairy 'Board elections represents the will of the rank and lile of dairy farmers. Directors of dairy companies are apt to labour under the delusion that they arc ex officio representatives of the Government instead of representing the suppliers who elect thorn.

Mortgage Corporation.

In furtherance of the policy recommended by the £nlry Commission the Government next introduced the Mortgage Corporation Bill. The purpose of the Mortgage Corporation was allegedly to provide cheaper money for farmers and to remove by absorption the Stato Advances Office and other State lending departments from the evil effects of political control and interference.

The intention or ability of tho corporation to effectively help farmers by lowering rates of interest is perhaps best appreciated by comparing the maximum rate of 3J per cent, overall Interest lixed by the Dairy Commission as the highest rate which farmers •could possibly pay under present conditions with the announced rate of 4 per cent, to Ah per cent, which is to be charged on money lent for dairy improvement purposes under special guarantee. It would appear that the price of shares and bonds in tho Mortgage Corporation will effectively prevent any substantial fall in the interest rates to borrowers, even if, as is at present by no means certain, the corporation has any considerable volume of money lo lend lo farmers generally. The justification put forward for the absorption of the State lending departments is really funny. It admits Ihe evil effecls of political control or interference and uses it as juslillcalion for destroying the last vestige of Slate control over our credit strueHire. h then compels t he whole dairy Industry to submit to the worst possible kind of political interference and dominationl Jt has often been asserted that no dictator ever had a sense of humour. Stripped of all pretence, it is clear that the 'Mortgage Corporation is primarily intended lo net as liquidator for State mortgages. II is apparently intended to apply the maximum pressure lo Stale mortgagors. This il is difficult to do through t lie Stale departments owing lo tin* tmpleasanl political reaction. The Mortgage Corporation will, however, he, like any other large llnanrlal concern, immune from sue 11 repercussions. having neither “body lo kick nor soul to damn."