New Zealand’s Problem

Dominion, Volume 28, Issue 92, 12 January 1935, Page 9

New Zealand’s Problem

Sir, —Mr. Wilkin and I are agreed that equality and justice must be the basis of any scheme concerning the dairy industry. If a subsidy were granted it would not necessarily follow that only the dairy industry would benefit. The subsidy would be based on the difference between the amount realised for overseas sales of butter, plus local sales at a reasonable price, to be fixed by the Government or Dairy Board, and the amount of the butter at 1/- a pound. The price fixed would require to be such as would enable a greater consumption of butter locally, but need not be as low as 4d a pound as Mr. Wilkin suggested. We should aim to build up a physically strong rising generation by providing plenty of food —especially our own production—for all; and if we wish to save the dairy industry we must realise also that there is plenty of butter to supply Britain even if New Zealand dropped out of the market. To say that ‘•if they did not like our price they would not get the goods,” may be all right if we had other markets wanting our butter, or if we could eat all we produce (which we cannot), but it seems illogical unless we are prepared to reduce our production and find work for dairymen in some other sphere. No matter what system or plan we adopt we cannot control world prices and it is no use shutting our eyes to the fact. I believe that the Reserve Bank ought to be under Government control, and hope it is. The Reserve Bank will, if properly used by the Government, be the means of giving plenty to all in a land of plenty, but i.t must be to all and all must participate. The feeding up of the one section at the expense of all others must be terminated and a policy of equity and justice be established in New Zealand. Borrowing at interest for the taxpayers to be eternally in bondage must cease and then will we begin to appreciate the dawn of the new era of plenty. lu this I think both Mr. Wilkin and I agree, while we may differ as to the ways, and means of attaining the worthwhile aim. 1 am. etc.. EQUITY. Wellington. [Apart from' Mr. Thomsen’s right of reply, this correspondence is closed.] X