FARM AND FACTORY

Rotorua Morning Post, Volume 2, Issue 574, 4 July 1933, Page 6

FARM AND FACTORY

CONFLICT OF INTERESTS ON QUESTION OF TARIFFS. WHO GETS THE EXCHANGE? The conflict of interest on the- tar•iff issue was again illustrated before the Tariff Commission, when the repPesentative of the New Zealfand Farmers' Unior, Captain F. Colbeck, was examdned by Mr. A. E. Mander, secretary of the New Zealand Manufacturers' Federation. Mr. Mander: Do you agree that the high exchange was a subsidy to the farmers1 from the community? Captain Colbeck: I am opposed to the h'igh exchange; but I believe the union supports it. Mr. Mander: Do you agree that the high exchange was a subsidy to the farmers from the community? Captain Col'beck. I don't agree. How much of the increase stops with the farmer? If the farmers are producing at a loss, the high exchange only enables him to pay further debts, further taxes, and further interest payments than he otherwise would. Mr. Mander: It reduces his liability? Captain Colbeck: It does not enable him to sell at a profit. Profe'ssor B. E. Murphy: You do not think that the effect of the exchange is benefieial to him? Captain Collbeck: It undoubtedly prolongs his life, just as a drop of whisky does. Mr. Mander: How many exporting farmers are there ? Captain Colbeck: I should say about 42,000. Mr. Mander: You will agree that the high exchange, which is paid by the whole of the community, subsidies 42,00 farmers? Captain Colbeck: I won't assume anything. Mr. Mander: Do you agree that whatever benefit comes from the raising of the exchange, it is levied on the whole community? Captain Colbeck. The effect of raising the exchange is to water the currency. Some people think that it is a good thing, and others do not. Mr. Mander: If New Zealand abo■lished all dutles on British goods, do you think that Britain, in response, would give New Zealand farmers an advantage in the British market over the Australian farmers? Captain Colbeck: I think so. It is cnly common sense. . I would like New Zealand to be in the- same position as Northern Ir eland. Mr. Mander: Is your reason for the abolition of the tariff to get an advantage ? Captain Colbeck: It is not a question of getting an advantage; it is a question of a status quo. Mr. Mander \ Do you wish to got any advantage over Australia? Captain Colbeck: -No, it would be Austealia's disadvantage. Mr. Mander: You hope to score an advantage over Australia? Captain Colbeck: I don't wish to gain any advantage over Australia. If Australia does not like to come in, then it will tend to break up the Empire. My ideal is Empire free trade. Mr. Mander: You want to get ah-

ead of Australia? Gapta'in Colbeck. I think Australia should do the same. iProfessor Murphy: When you say that you would be prepared t0 sacrifice some of the subsidies and protection you received; are you speaking for the whole of the farmers) of .the Dominion? What percentage of the farmers are members of the union? Captain Colbeck said that between 33 1-3 and 40 per cent. were finaneial. Professor Murphy: Yes, I am just a litble sceptical about how far *you can commit the farmers. Mr. Gow: Do you think it is desir•able to retain sqme iindustries in New Zealand? Captain Colbeck said he would be prepared to retain them all if they