THE STATE AIMS To End Farming Slumps

Hawke's Bay Herald-Tribune, Issue 112, 28 May 1937, Page 11

THE STATE AIMS To End Farming Slumps

-Pres* Associatioa.)

EC0N0MIC P0LICY 0F G0VERNMENT Mr. Fraser Addresses Farmers NEED FOR UNITY

(Bf Telegrsph -

DANNEVIRKE, This, Day. That the aim of the Government was to implement an economic policy designed to bring about stability in the primary production industry and to prevent slump conditions, was asserted by the Acting-Prime Minister, the Hon.. P. Fraser, in the course of an add'ress delivered at the inter-provincial conference of the Farmers' Union at Dannevirke yesterday. The Minister said that he was very pleased to avail himself of the opportunity to address tho conference and to tell delegates how interested the Government was in sueh gatherings of primary producers and how interested it was in the work of the Farmers ' TJnion. The Government desired the most complete eo-operation with farmers in their industry. Our democratic constitution was our most precious possession and he couid not keep contrasting what New Zealand enjoyed with. the constituti&ns of other countries. Under a democratic constitution, such as . New Zealand enjoyed, the people decided what Government and what political ideals should be elected and aimed for and botk could only be achieved with the co-operation of ali the people. At the last general clecition the people decided upon a change and decided that the Labour Party ( should be given an opportunity to govern the country for a period of ifrom three to four vears as the Govern■ment decided. That was the decision jwhen the Government assumed office. "Tha Government had placed before the people of the country what its policy would be in regard to the various Ibranches of industry and particuiariy primary production. The Government iwas obliged to give effect to the planks of its platform and to. keep faith with .the people. It was reaiised that if ever it had been possible to divide the people into sections and consider their peparate interests, it was less so to-day,. iSuch a condition would have produced iperpetual antagonism. Every activity was inter-related and in such relationship he was reminded of what St. Paui had said, "We are all paris of onc another." There was no doubt about that to-day and it seemed that if the country was to have a balanced economy, prosperity and contentment, then all should co-operate, and in that ""co-operation should feel -that they were being amply recompensed for their efforts. That was the view of the Government in office. It was bound to give consideration to tho position of the primary producer. Whether there was agreement or disagreement with the policy of the Government, it must ihe agreed that tho Government was bound to implement its policy in a way that would be,. beneficial to ail concerned. One or two proposals were outstanding and in the consideration of theso it was reaiised that if they acted detrimentally on the'farmer they would have the saitte influence on the rest of •the community, just as the action of a •stone thrown into a pool of water > caused ripples to go wide out. If there jWas hardship to the primary producer 'then > everybody would be affected. There was no country so dependent on 'primary production and unlesa thero was security, as far as it was humaniy possible to give that security, and some amouht of certainty with Tespect to incomes, there was no possible chancc of there being that assurance and sensc 6t ample Tecompense. The position then of the primary producer could not, in the opiuion of thu Government, be deait with under the old methods usually called orthodox. It simply could not be done iii that way. The country could not sit down calmly hoping for a return of the conditions of the past. Leaving what Ijad passed •alone, he would say that there was no difference of opinion that there was a dcsire to explore every possibility of establishing stability on sure foundations. There were points of view that the country should go back to pre-slump conditions, but that was simply preparing for another slump. The Government knew that it could not control the world markets. The country was de.pendent on them and with the utmost eo-operation he was eonlident that New Zealand could make its security . niore assured. Our part was to build up what we could and, then negoliate. It seemed to the Government the keight of foolishness, indeed the height of madness, to stand sublimely by and allow tliings- to take their own course. To do that would amount to an adinission of the utter failure and hopclessness of mankind to face up to the position. "I refuse to accept that any economic or social force is beyond the ability of mankind to meet," said tho Minister. The economic system had been built up" upon huniau necessity aud was capabie of being made to meet the new conditions, and ne believed that it | was possible for mankind to control and | direct what jt had built up. The slump was evidence that there ! had not beeu any pian, bccause it was 1 impossible to provide any plan in a period of economic developmeut. U WTas unthinkable, aud the most elemcnt j ary knowledge of economic history clcarly demonstrated this, that progros. had stopped. There must ever bo pro gress. The - very i'act of this conferenc. was proof positive that evolution wa still in progress. Delegates had eom together to pool their ideas and, aftc. ail, the State was simply a co opexativ» institulioa working for tho opmjflon i

> good. With that idea and that eonI ception of tha position th* Government was bound to consider the position of the primary producer and refused to believe that all that was required was a temporary remedy. To have acoepted that view would have paved the road for the experience of another sdump. No one wanted the p^st slump and certainly no one wanted to experience another, therefore it was the duty of t the Government to prevent a repetition of such conditions. (Hear, hear). There was room for serious, honest differences of opinion, but there could not be two opinions on the need for preventing slump conditions. The Government had turned to the dairy farmer, for it appeared that with. hirn the greatest danger la f. It believed that it would be a good thing to stabilise prices on the one hand and the liabilities and responsibilities on the other. A determined and honest attempt should be made to do that. In every experiment there was aJways a margia of error as well as room for criticism and helpful suggestions. Any Government, sincere in its policy, welcomed examination and criticism of its work. If he saw a mistake it wouad be his duty to point it out, but there was no sense in criticism for the sake of criticism. It was stupid to hamper a Government m office solely with the object of hampering it. If there were weaknesses in the policy, they should be pointed out; if there were mistakes they shoulu be pointed out and corrected and if improvements appeared possible they should be suggested and urged. He did not object to fair ( criticism, but unfair criticism always defeated itself. No one was infallible, and certainly no Government was infallible. The Government had looked at the problem of the producer and the question had been approached in two ways. First it had seriously tackled the question of stabilising prices within the country, and next the matter of readjustment of finance which the previous Government had commenced. It had been considered altogether futile to re-adjust finance on.the old basis. No one wished to perpetuate the past conditions and all he atked was that the proposals of the Government be carefully examined and given a proper trial before deciding whether they are practical. . ' Up to the present, continned the Minister, things looked fairly eatisfactory. Cheese had gone up and would probably retUrn more than the guaranteed price. Much depended upon the values receivcd from now until August, but the indications were that the pay-out would be satisfactory to the dairy farmer. The margin of difference between the price for butfcer and cheese had been adjusted to 2d for next season. Given an average yield and an average cost, it was considered that 2d would be a fair margin, but that may vary. To Taranaki and Southern Hawke's Bay that margin was considered satisfactory, but he reaiised that opinions would differ in districts where different dairy breeds were used. Further, the Government was at present investigating the proposal for an alteration in the payments on a butterfat basis; questions which would, he said, be considered quietly and dispassionately to decide what was in the best interests of the industry. The Government, in this work, was acting on the best advice procurable. In considering these questions, provision would be made for increased costs, both on farm and in the maiiufacture, and the hope was that in the adjustment of next season 's price the return would be satisfactory to the dairy farmer.

On the other side of the question the Government had set up commissions for the re-adjustment of farm finance with the object of placing it on something like a sound basis — on the one hand with security for an adequate recompense for labour, and on the other for security of finance. If the Government was successful in this endeavour then, for tho first time, those engaged in the dairying industry would feel that they were on a sound foundation and have confidence in the future. "If you can suggest improvements and amendments in regard to the Government 's guaranteed prices they will get serious consideration, but don't advocate impossible schemes," said the Minister. "The Government stood for the control of credit in the interesln of the country, but do not jump on impossible schemes and imagine that by a miracle of finance we can do them. You can stimulate production by the distribution of income, .but - any rash policy. will cause disaster. It is dangerous'to get away from thinking in terms of commodities and imagine the assistance of some miraculous medium capabie of working the impossible. There is a danger in iaking the maekine, the iinpicinent, for the whole thing. Finance can be wisely usod and all that I ask is that the farming community, from a desire to have things well and good, should not juinp to opposite extremes and give the Government something impossible to do. It is easy for yoti to give the Government proposals quite impossible to implement."

in regard to the othqr sections of the community, farming could not be successful if they were depressod. No oue believed that 'it was a good thing to have thousands of unemployed and thousands on susteuance. No one believed it was a good thing to shrink from responsibilities. All knew it was demoraJising and it was cqually demoralising if people refused opportunity of obtaining work wlien it was given them. The " problem of unem(loyment Was still in tho country. Rr •1,1 n tnVl > h ni tWe was a I'ccil for labour on farms and if that v,ras so, then it was the job of the Gpvernment to co-operate to the fullest extent and see that tho labour was available. If the Government schemes were not working, then it was the duty of the Government to attend to the matter. It was a tragic thing to see young people, tkrougk no. fault of their own, unable to get work. But the position could not be reetilied on any basis of exaggeratiou. From Ihe Waikato came word that there was a serious shortago of seasoual labour to undertake karveeting. The matter was taken up by Mr Armstrong, who brorght men from Auckland aud established a camp. Oue of tlie problem*. at that period of the

year was the mobility of labour— to get. labour when urgently required. The idea of a camp was decided upon and the labour was supplied and worked very well, but the number of men required was far below that expected. The impression was that hundreds of men were required, but onlv 25 men were employed. On the one hhnd the GoVernment had been told that there was a serious shortage of labout, but found that was not so. Every avenue of employment should be explored and arrangements made that recOmpense would be made to the workers. It was no good if men on eustenance refused work. The Government was groping in the dark in an effort to obtain authentic and honest information. If it could get that then it would be a comparatively easy matter to solve the problem. Sustenance payments offended common sense and the Minister issued a cordial invitation to the conference to set up an organisation which would keep in touch with • the replacement offipexs . in an effort to meet the situation. The Minister, in toucking upon interrelationship of all industry, said that ij; would be a disastrous thing for tho country. if antagonism sprang up and spread among the different sections of the country. All services were essential and all were entitled to adequate recompense. All were cqually important. Every activity was co-related to some other activity and all were doing their share towards producing prosperity. The Government considered that it was absolutely essential for guaranteed prices and social legislatior such as national insurance, were to be carried out, it was not only necessary, but absolutely imperative, that everyone should work to the best of his or her ability. (Applause). "My final word to you is that the Government does not want to s6e anvone overworked in this age of science and machinery. Everybody was entitled to do his best-, entitled to leisure; entitled to security; entitled to an adequate me&sure of recompense, and to a decent home, but to achieve that it required that everyone did their best, conseientiously and honestly, so that our country can be advanced to greater prosperity. (Applause). Conference accorded the Minister an enthusiastic vote of thanks for his address on the motipn of Mr W, W. Mulholland, Dominion prosident, •