SUBSIDISING PRODUCERS

Hokitika Guardian, 28 July 1927, Page 4

SUBSIDISING PRODUCERS

TAXING Till'. PUBLIC. (Taxpayer). Alore than once during the present session of Parliament, which has not yet entered upon its second month, i lie Prime ALinister and the Alinister of Finance have had occasion to explain to importunate members of the House that if their appeals for loans and services, subsidies and bounties, "ere granted the Treasury would be practically depleted before the close of the financial year. Nor ore the troubles of .Ministers in this respect yet at an end. There still are quite a number of deputations on the list that have to do with project for assist, ing private enterprise at the expense of the State, which means, of course, at the expense of the great body of taxpayers who have no interest in these particular enterprises. Among these is a deputation representing a number of farmers interested in the production of pigs and the export ol pork and luicon. which hopes to extract a subsidy of some £25,000 or CSC.OOO from the Government. £5.000 from the .Meat Board and a similar amount from the Dairy Board to safeguard its principals against ally hiss in their enterprises. The scheme irom its promoters’ point of view is charmingly simple and already has been submitted to the Prime Alinister. ORIGIN AND PURPORT.

It would lie unfair to the Prime Alinister and the Minister of Finance to assume that they are likely to give their countenance to such a proposal. As the deputation is to make its appearance in AYellington before the end of (lie month, however, the time may not he inopportune to indicate briefly (lie origin and purport of the scheme. \t the beginning of the season just closed the outlook for pork and bacon on the Louden market was so attractive. largely owing to the embargo placed upon supplies from the Netherbinds. that the New Zealand exporters made a very special effort to reap large a. share as they could ol the good prices that were ruling. The exports for the season were more than double those of the previous season, the increase being from 20.95” pigs to 0R.792 pigs. But nil fortunately in their eagerness to reach the improved market, exporters were less careful than they should have been in meeting the special requirements of the British consumers and in maintaining the necessary quality. These lapses, aggravated by the customary seasonal decline in prices from July to June resulted in the exporters not securing such good returns as they had anticipated and left many ol them with reclamations to meet. Hence the present appeal to the Government lor assistance and for an assurance against a similar experience in the future. The London market held well enough throughout the season to give the exporters a reasonable return for their enterprise, had (heir goods been lip to tin" Home standard. This may be judged from the monthly average prices on the Smithlicld maiio't. These were ns follows:—July. IR.Jd per lb; August. 10,(d; September. 9UI: October 9Jd ; November. BJd ; December, 8 I-3d; January, 7 T cl: February. 7iel ; Mlarch, 7.L1 ; April, 7Jd : .May. 7id : June 7c 1. It is accepted generally throughout the Dominion that if a breeder secured 5d per lb for his pigs on the farm he is obtaining a payable price. The trouble is that he lias not vet adapted his productions to the requirements of the Home market. On this point it will he interesting to quote a few lines from a. report, dated March 17, 1927. issued h.v the Control Committee of the Snmliiiold Alarkct. "Rig breeding in the British jsles,” they run. “has some way to go before overtaking the deficiency in the quality ol tresli pork caused hy the enyiirgn upon Dutch killed pigs in Julie last. The deficiency may bo put at 17,009 tons, or about half a million 891 b pigs, and although Sniitl'.fi'.'ld prices were liftin'tive. the combined efforts of British. and frish producers failed to t ounterhalanco the shortage. Heavy and unmarketable IYo/.on pigs arrived from most of the pig-produc-ing conntiiies under flu* sun, hut were 1 only of use at a low price for chopping and luincing purposes or tor use in the various food factories; they certainly were not of a type wanted by the London pork trade.” Here probably is the explanation of the New Zealand exporters’ disappointment.

IXCR RDIBI.K. 11l view (if nil those circumstances it is incredible that tlio Goveniment will subsidise the exporters to cover their post losses or their future ventures. Let them he encouraged in every reasonable way to breed the class of pigs required by the Home market; to reduce the cost of production; to regulate supplies; and to turn to the greatest advantage the opportunities of co-operation. Beyond this Government interference could produce only friction and discontent. Ihe l>eei breeders, at any rate, could tail lx claim to share with the pig producers any State assistance that was avadabie. The big buyers, freezing companies and the rest, would have to ho subsidised in the same ratio as the small producer. Then in the end the local consumer and the local taxpayer would find added to their daily burden the cost of repairing the deficiencies. miscalculations ami losses of the speculative farmers and business men. ]( is a picture .Ministers scarcely can contemplate with equanimity