Costs and Taxation

Sun (Auckland), Volume III, Issue 722, 23 July 1929, Page 7

Costs and Taxation

n “FARMERS MUST ORGANISE - 7 Presldent 8 Annual Address (Special to THE SUN) \VELLINGTON, Today. “AT no time in the history of the farming community has organisation been so necessary as it is at the present time. This ‘is the age of organisation.” So said Mr. W. J. 'Polson, president of the New Zealand Farmers’ Union, in the course of his presidential address delivered at the annual conference which opened in VVellington this morning. He stressed particularly the need for lowering production costs, and warned farmers against the possibility of higher taxation being imposed by What he. termed “a businessman’s Government.”

THE work of the Farmers’ Union had made steady progress dur« ing the year. said the president. Numbers continued to increase, revenue was growing, and interest was keenly maintained. Today, the membership stood higher than ever before, and an analysis of the statistics of the farming population clearly established the fact that the bulk of the bona fide'farmers of the Dominion —men with sufficient land to make it their sole means of livelihood—were today financial members of the New Zealand Farmers’ Union. GREAT DEAL TO BE DONE “But there is still a great deal to be done,” said Mr. Polson. “This is the age of organisation. W'e are surrounded by it. Not only are there organisations of labour and of employers in industry, but great organisations of capital all intent on safe—guarding their own interests/ “Combination is opposed by merger, merger by amalgamation, amalgamation by cartel, cartel by union. and union by association. The farming community needs cool heads and stern hearts if they are to hold their own. In this peculiarly primary producing country, Where the whole import Wealth of the people rests upon successful production from the soil. and where our market is half a world away, this is particularly true. “'e have to maintain our 01‘— ganisation at all costs.” BUSINESSMAN’S GOVERNMENT "We have had a recent election in New Zealand, and have a Government in power pledged to go further than any Government has hitherto gone in assisting the primary producer to maintain his place in the sun. “No doubt the Government is *perfectly sincere in this, but we

must not fo_rget that it is a busi-

nessman's Go'vcrnment.

“There is only one genuine farmer in its ranks, and he has been loaded with the two important portfolios of Lands and Agriculture. Two other members of the Cabinet are successful businessmen, who farm land by deputy, but the rest of the party in power has no personal interest in the industry we follow here, The result is that the secondary industries are taking heart. “Enormous pressure is being brought to bear on the Government to grant more support to secondary industries, through the tariff, by cutting out various State and municipal business enterprises. and by the re—adjustment of taxation to put a still greater burden upon the land. l\:o doubt the Government will do its best to maintain an open mind, but unless we are prepared to show our deter—mination to fight and to carry the fight through to its bitter conclusion, we may find our case going by de'fault. TAXATION FORESHADOWED “There was already a demand that the increased taxation foreshadowed by the Government should be placed upon the shoulders of the farmer, Mr. Polson continued. A proposal emanating from men who represented city interests purely had been made that the farmer should pay dual taxation instead of merely land-tax. It was true that the pill was gilded by the suggestion that only the large farm—ers would feel this additional burden. Nevertheless, though the small farmer would escape largely, it not entirely, those who talked of taxing the large farmer forgot that every small farmer hoped some day to be in a position to increase his holding, just. as the shopkeeper hoped to en—large his business in order to give a

fair start to_ his spnsant} d_aught9l{'_s.

“It must be understood that While farmers as a class are in favour of closer settlement, opposed to land aggregation and reconciled to the principle of a graduated land tax, they will solidly and unitedly oppose any proposals for dual taxation,” said Mr. Polson. “It is true that as the one class in the community who can pass nothing on they ultimately pay all taxes; but a cynical attempt to load them directly with the double burden of land and income tax every farmer in the Dominion will determinedly resent.” l REDUCING COSTS “During the past few months, as many of you will have seen from the Press, I have been devoting myself to drawing attention to the most pressing of our problems—the problem of costs. It is not a purely New Zealand problem. It affects most of‘ the countries of the Empire. Aus-‘ tralia suffers from it as severely as we do. But; it is the vital one. “Unless we can get costs down we cannot get ahead with primary production. . We have great areas of land in New Zealand which are only capable of being successfully farmed when costs are kept down. “We are busy with fertilisers and careful breeding, increasing the yield upon our good country, but the first: set—back in prices Will see a. greater reduction in the output of our deteriorating lands than can be overtaken in the increased output of our highclass areas. “I am as confident about the future of New Zealand as any one, but we. cannot continually expect high prices. If the economists are right the return to the gold standard means a steady fall until we get back somewhere near the Dre-war level. “We have seen remarkable prices this year in respect to all our main industries, with the result that we have reached record export figures. Not only were prices good, but we have had one of the most bountiful seasons for a number of years to still further inflate our exports. But we cannot expect a repetition of these conditions. Already there is a. serious drop in wool and suggestions of greater competition in dairy products. Assuredly, unless we can cut down our costs of production, we will not be able to march ahead in the future 1 with the extension of our industry.” } WAYS TO PROSPERITY i Mr. Polson went on to deal with {the question of labour costs, fiscal costs and excess profit costs, touching thriefly on their relative position in ‘ the cost of production. Reduction in 'cost of production could be brought | about also by more efficient means of distribution. A national stocktaking should be undertaken, and the whole situation should be reviewed. “A 10 per cent. reduction in costs, to use a purely arbitrary figure, would [mean not only an increase of 10 per

cent. in spending power. but an in. crease to a very much greater extent in development through the increased confidence created by healthier condi~ tions. Unemployment would instantly disappear. Labour would find emplos‘ ers competing for its services, in all probability at rates which would further improve the standard of living. “We can bring about these results only by solid educational propaganda in the first place, and by sticking together and unanimously demanding of our rulers that the importance of this matter merits more than party political consideration, and finally by concerted action on our own part that will leave no room for misunderstanding. “During my term of office I have Worked to consolidate the farmers of New Zealand that they may become like the old Roman phalanx, a great united force with a common object—the reduction of the farmers’ handicaps.”