FERTILISER WAR.

Press, Volume LXIII, Issue 19144, 29 October 1927, Page 16

FERTILISER WAR.

SOUTH ISLAND FARMERS PENALISED. GOVERNMENT ACTION URGED. [TEE PEESS SpeeUl Service.] WELLINGTON, October 28. A distinct hint that unless the Government would take a hand in the fertiliser prico differences between the South and North Islands, farmers would combine to import their own manure end fix their own prices was thrown out to-day in tho House of ilepresentatives by Mr D. Jones (Ellesmere). The matter was introduced by Mr J. R. Hamilton (Awarua), who raised the question of the discrepancy in prices There was difficulty, he said, in securing supplies at the prices paid in the North, and he urged that the South Island people should not be forced to erect works at a cost of £250,000. There were already plenty of works in the country. The same company was in operation in both Islands, yet 30s more in some cases was being paid in the South. He urged the Government to take the matter in hand and not "fiddle while Rome was burning." Mr D. Jones (Ellesmere) supported the member for Awarua. He believed that there was a war in the North Island over the question as to whether oiie of the big co-operative dairy companies should be regarded and treated as a merchant. He noticed on the directorate of one of the companies the name of Mr W. Lee Martin—perhaps a namesake of the member for Raglan. Some said it was the member himself. Was it not 'extraordinary that the Farmers' Union Executive should be practically the Country Party in tho Auckland province? Some of the names were to be seen on the Farmers' Fertiliser Company and other trading companies. It seemed as though there were an interlocking of directorates on some of the companies in which the Country Party was extremely interested. It teemed as though the farmers' fertiliser companies and a number of the leaders of the Country Party on those directorates were fighting what was a farmers' organisation as far as manure prices were concerned. The Country Party, represented in the House by the Member for Raglan, who, though not a member of the Country Party was closley allied to it and by some strange coincidence was treated as a member of the Labour Party, had not como to an agreement as to the acceptance of a dairy company as a merchant. It seemed strange to find a farmers' company at war because it would not recognise a big dairy company as a merchant. The Government had now an opportunity to treat the dairy-farmers in the proper way. Ho suggested that the Labour Party might rsc its influence to see that some reasonable form of co-operation was brought into play. What were the facts to-day? Auckland farmers, largely with South Island money, were getting their fertiliser at £4 2s 6d a ton, while South . Island farmers were paying £5 12s 6d for the same article. Mr Jones said he did not consider that the remedy lay in building new works. Manure could be brought from the Continent and sold at South Island ports after paying charges at £5 a ton. "After the session I am going to get the farmers to-gelher," said Mr Jones, "and if the price is not reduced they will import their own manure and make their own price. . Tho merchant is going to be asked if he means to keep up the unholy alliance in connexion with the distribution of fertilisers in the South Island. The merchant will be told that unless the farmers aTC treated in a reasonable manner South Island farmers will look after themselves." Mr J. A. Lee: Socialised distribution! Mr Jones: No, it is not that at all. It is purely a question of individualism and business methods. The farmers can do it. The position is in their own Lands. Mr W. L. Martin (Raglan) suggested that the fact that he was a member of tho Farmers' Union as well as a member of the fertiliser company did not in any shape or form bind him to the Country Party. That Party was entirely independent of tho Farmers' Union. The Minister for Lands (Mr McLeod) said the Government was repeatedly being urged to cut down the cost of Government and State enterprise. Apparently Mr Martin thought that socialisation of tho means of production and distribution would bring about a reduction in the price of fertilisers. Mr Martin: That cut no ice in Raglan when you said it. The Minister: The hon. gentleman is finding extreme difficulty in expressing tho two views of tho two elements in his electorate. The Hon. Mr Nosworthy took up the cudgels in the interests of the South Island farmers. Kempthome, Prosser's, lie said, had a monopoly in the South Island, and had been cutting prices in the North Island against the firms operating there. During his time as Minister for Agriculture he had made a strong effort to get a reduction in the price of fertilisers, and had succeeded to a certain extent. Since the challenge works in the North Island had passed into the hands of a big company out of the hands of Wright, Stephenson and Co. The new company had been supplying its own farmers with cheap manure, which brought the prico down from about £5 12s 6d in tho North Island to about £4 2s 6d. Owing to the cutting of prices in tho North Island through Kempthome, I'rosser and Company's competition, the North was getting tho cheap manure, and the South Island was being made to pay for the cut-throat competition in the North. The South Island was getting the worst of the deal all the time, and Kempthome, Trosser's were rooking the South Island for all it was worth, while the North Island was geting tho benefit. That was what was going on. Mr Wilford: What are you going to do about it/ Mr Nosworthy: "That is another thing. There are different ways of (lo.iliug with it." One was for the farmers to combine and import the manure from outside New Zealand, and n\y to the local iinu: "You can go for your trade somewhere else." (Hear, bear.) Another way was to acquire a piece of ground, say at Timaru, and put up works there, distributing the manure north and south. Another way was for the State to go into the busi-m-ss. It would not be the first time that the State had gone into business, niul if ever there was justification for llie action it was in this case in con- i nexion with this matter. Yet another I way was to get the rock from Nauru ! sjud Ocean Islands at the same price as tie other works were getting it, for in this way they could manufacture their manures and do quite well out of it, while at tho same time they would be getting rid of the octopus that was i on their backs to-day. Anyhow, the farmers were quite justified "in asking that something should be done. Mr Wilford: Is this a pronouncement on behalf of the Government, Mr Nosworthy: No; I am speaking 8S a farmer, Mr Wilford: Do you think it is pos-

sible for any number of farmers to work together?

Mr Nosworthy: They are doing it now at Te Papa. They can put up their works and say to those who are exploiting them: "You can look for your trade elsewhere." That is what it is coming to if no one-will do anything. They will come to the Government as a laßt resort. Cheap manure is as essential as cheap money. If they can get cheap manure it will go a long way to help the country in the development of its lands, and all will benefit. Mr H. E. Holland, Leader of the Opposition, complimented the Minister of what he had said. The House was indebted to him for his clear exposition of the question, but his colleague, the Minister for Lands, who had spoken differently, must • havo been very uncomfortable while "ie (Mr Nosworthy) was speaking. Mr Nosworthy's statement, however, was a clear condemnation of the inaction of the Government in this matter. The Prime Minister said that a little over twelve months ago a very important conference was held, and the Board of Trade reported on the whole question. A very great effort was made to bring down the cost of superphosphates and other fertilisers, but the result was very disappointing, and then the war to cut prices started in the north. He was unable to say whether the parties to the warfare were carrying on at a loss, but he hoped the war would continue.

Mr E. P. Lee (Oamaru): They must be making large profits in the South Island.

The Frime Minister said tho position was disturbing to the Government, which was anxious that the primary producers should be supplied at a cost that was reasonable to them and to the manufacturers. There was no chance of the Government being able to handle the fertiliser business. It had been suggested that the Government should use the "big stick" to the manufacturers in respect, of the supply of the phosphate rock. The Government must have figures regarding the costs of manufacture that it could stand bv, and its investigations in that connexion were being carried on steadily and persistently. When the Government had all the facts in its possession it would be in a position to deal with the whole question of the Bupply of fertilisers. it was fully seized of the vital importance of a plentiful supply of fertilisers at a reasonable price.