WELLINGTON NEWS

Hokitika Guardian, 4 September 1931, Page 7

WELLINGTON NEWS

THE PRIMARY (PRODUCER.,

(Special Correspondent).

WELLINGTON, 'September 1

The condition of 'the primary producers in the Dominion is very serious, how serious the people do not know. It is only those in close contact with farmers and having close business relations with them who know the position, it is. only fair to state that the position of the N'ew Zealand farmer is not singular, for the primary producers in all countries are in the same serious condition.

It is the plight of the primary producers that is responsible for the plight of the world. The produce that he has gathered after weeks and months ot toil does not yield him more than sufficient to meet living expenses, in some branches of farming tfTe position is worse. The sheep farmer does not merely face ruin, he is ruined. He has seen wool, mutton and lamb steadily falling for two seasons, and in the course of eight weeks, more or less, he will be shearing his flocks, and what are the prospects? If he nets 4d per lb for his crossbred wool he will be exceedingly fortunate. Bradford will be unable to afford improved prices, and that is'evident from * the fact that a National •Government has been formed in Britain to deal with a serious financial crisis. ■ Drastic economies and increased taxation are inevitable. Germany cannot be a prominent purchaser of wool for her financial condition is serious. The (French demand will be limited and so will the American. Our last clip realised less than £6,000,000, but that was partly due to the fact that the wool withheld from sale amounted to 200,000 bales. This carry-over, which 'is equal to about one-third of the total clip of the Dominion, is a menace to the new clip, and will help to keep down prices. Then again cotton is exceedingly cheap and will be a bearish influence on the wool market. The outlook for the sheep farmer is dismal, and the outlook for the dairy farmer 'is not much better. •While the' farming industry remains depressed the whole country feels the depression, and the first duty of parliament and people is to help the farmers to make production pay.

The inter-party Economy Committee has had some plain placed before it, and the members of the Committee Were somewhat staggered at the disclosures. Something has to be done, and something must be done. There must be further drastic economies to wh'ich the entire nation must contribute. It has been suggested that a further 10 per cent, cut must be made. This, no doubt, will be necessary, but is the least 1 of the economies that can be made.

The position Is serious enough to Warrant a complete revision of the entire economics of the country beginning With the Government arid Parliament. .It most be realised by everyone that it is desirable to have fewer (Ministers of the Crown, fewer members of Parliament would not be detrimental to the efficient Government of the country. Then we could have fewer State departments and the trading departments of the State should be abolished. The State Advances Department should be closed, and the money coming in from borrowers 'should be applied in reduction of debt.

The Government could very well -reduce the Education vote, abolish all subsidies and bounties and grants, which would save the country a lot of money. It is quite within the bounds of probability that the Government may have to follow the example set by the Commonwealth of Australia, and convert all local .issues into 4 per cent, .stock and cease borrowing over the counter.” •Local Body finance is in a precarious condition and this wants examination.

.There are too many local bodies in the country, and 50 per cent, of them could be wiped out with advantage. The whole economic system must be recastcd, we must get down to tin tacbs. An Economic Committee on the lines of the British Committee, with no party politician as a member is needed to tell us the true state of affairs and what to do. That the conditions are serious is admitted even by the man in the street. >