EXPORT EXCHANGES

Hokitika Guardian, 31 August 1932, Page 3

EXPORT EXCHANGES

“SPECIAL TAX ON PRODUCER.”

CRITICISM BY DAIRYMEN

FEILDING, August 30

‘‘lt was a .th-ng to no, and undoubtedly amounted to a spec’al tax on the producer,” commented -Mr : C. O C.'Dei’mer when dealing with the control of export exchanges. Mr Dernier said that iiom January J ;to June .30 itlie Government had, by lOrder-in-Oouncil, taken control of the -export exchange to enable it to secure its requirements of Jxmdoji money. This was a drastic measure,-as,, it really -meant exchange; that would have probably been paid to the producers. The producer was rightly entitled to the amount his produce brought in English mot jy, and t-o its equivalent in New -Zealand. Such .pooling of exchange -really amounted to a special tax upon the primary producers. It was noticeable, continued Mr Dermer, that an attempt had been iiia'd 6 by city ’ interest -and the press generally ito draw, a red herring across the trail by assuming that the produce ■was asking ~for An artificial exchange. Such a thing was never sought, the only contention of the pi'Oducei' beiiig that 'the exchange should be allowed to, ■ ito free without any restrictions what-, soever.

“The New Zealand farmer*is working •it - a disadvantage compared with the Australian farmer,” 'said Mr Dermer. “As an indication of the effect or the ■exchange position, the -premium in Australia is at present 25 per cent., which niakes -an added return to the Aflstraiian . producer of approximately 3d a lb. on butter-fat. In the cage of Ney Zealand, if is 8* per cent, oh' demand drafts, and this helps the return of: outproduce by about Id a lb. .. ( ‘T<he-d'ffeiv-eace in favour of the Australian produce, is therefor P . a out, "dr a lb. In -addition, owing to the ■Patterson scheme, the Australian producer receives a further premium on his butter exported. This combination of advantage, has enabled a payment to him'of Is od, which is approximately 6d -a pound better than we are receiving in this Dominion.’’