Farmers Want Brake Applied On Rush To Disaster

Chronicle (Levin), 18 May 1948, Page 5

Farmers Want Brake Applied On Rush To Disaster

Press Association )

( Per

WELLINGTON, May 18. I In the present situation — thf actual reverse of 1944 — nobody j could possibly imagine that Britain ! could pay New Zealand a com[passionate allowance. Whatevei jwas.paid would be qn accqunt qf Iprqduce sold tq her, said a statejment issued by Federated Farim lers qf New Zealand, in expressing [cencern that the New Zealand I finance authorities would again jnegotiate with the British Treasury for lump sum payments in lieu of increased prices for primary produce. - It seemed likely, according to information received by Federated Farmers, that negotiations for lump sum payments would be concluded between the two treasuries iwithqut reference to the marketing j authorities or the producers' repreisentatives. i Before the negotiations began iregarding the price of New ZeaJand's produce, the statement conjtinued, an examination of Britain's j position showed that she was at i present over committed in regard [to her current sterling indebtness | to New Zealai-d to such an extent ithat it had become necessary for iher to freeze New Zealand sterling balances in London. It was unreasonable and illogical to suggest that lump sum payments be made for any reason other than for what was supplied to- Britain. The reason given for the payment in 1944 had been that New Zealand's sterling position was so bad that it appeared as if, without Britain's assi'stance, New Zealand might not have been able to maintain her payments. In effect the payments had been a compassionate grant. But then the situation changed, proceeded the statement. It had been possible to maintain the present extravagant rate of living in New Zealand only by the Government getting its hands on the money which lump sum payments provided to New Zealand's credit. The position of farmers in New Zealand had rapidly deteriorated Decause of the subtraction from the price they received. for -their produce, which, when added to the incomes of others, aniQUnted to between £60,000,000 and £70,000,000The people should now be beginning to realise what a subsidy the farmers of New Zealand bad paia to them. As the subsidy built up. so did costs rise against, .the farmer, and Lt was little wonder that farrpers were implacably opposed to any continuance of lump sum payments. The principle and practice threatened tq bring disaster tq the iqtion's whqle • econqmy if they cqntinued. The farmers were merely trying tq put the brake qn tbe headlqng rqsh tq disaster in tvhich the cquntry was new engagcd.