PRIMARY PRODUCERS

Evening Post, Volume CXII, Issue 57, 4 September 1926, Page 7

PRIMARY PRODUCERS

AND SECONDARY IN-

DUSTRIES

WHAT THE FARMER FEARS

That any wholesale increase of the Tariff which entirely ignores the position of the primary producer in this country will be extremely dangerous, is the opinion held by the Minister of Industries and Commerce and Lands (t"e Hon. A. D. M'Leod). Speaking on the Customs Amendment Bill in the House of Eepresentatives last night, the Minister said that this country could not become the great country it was destined to be without largely increasing the secondary industries, even to the point of becoming an exporting country as the result of the activity of the secondary industries. He was sure that the primary product s were not opposed to the encouragement of the secondary industries or the imposition of additional tariffs to encourage the secondary industries, provided that the prices of the products of those industries did nat rise as a result. The Leader of the Opposition (Mr. H. E. Holland): "Would you apply that to the protection given to wheat and flour, too?" "Yes," replied the Minister, "it can be reasonably applied all round." Mr. Holland: "It does not apply at the present time." "I say that exceptional conditions have arisen," replied the Minister, "and I say this definitely that the farmer has never limited his production of wheat in this country in order that by so doing he could get a higher price. If, as we all hope, this country produces ten million bushels of wheat next year, then the selling price of wheat in this country will be the world's parity. Make no error about that." "It will be export parity, too," interjected Mr. J. M'Combs (Lyttelton). The Minister: "Yes, but I am putting the primary producers' viewpoint. " M:\ M'Leod alluded to the protests raised against the control legislation and the objections raised against control being exercised in regard to local Mr. Holland: "You would not favour applying export parity to internal conditions?" The Minister: "I know that as far as the primary producer is _ concerned he has to accept export parity." Mr. Holland: "But we don't do that." Mr.' M'Leod replied that the price the farmer receivnd locally for his produce was fixed by the selling value in London. This country might increase its consumption by 60 per cent, and that value would still be fixed in London. It was certain that if we exported only 20 per cent, the local price would be fixed in London just the same. Mr. Holland: "That has not always been so. We have often paid higher prices for butter here than at Homo." "Owing to a temporary shortage, and that alone," replied the Minister. Corporations with large accretions of capital had means of fixing prices, but the farmer had no control over the way labour conditions and wages were fixed. The farmer considered that he was 'being detrimentally affected. In some cases where farmers lived a more or leas isolated life these ideas were exaggerated, but he felt sure that a good deal of educative work would have to be done before unanimity could be reached on the point of materially adding protective duties to industry. As far as the primary producer was | concerned, if he could feel that prices, were not going to be increased against him for the hundred and one things he had to use every day on the farm, he was not opposed to the growth of the secondary industries. The farmer's experience was, however, that these things were always increased against him.