THE FARMER PAYS

Sun (Auckland), Volume IV, Issue 1041, 4 August 1930, Page 10

THE FARMER PAYS

TALK TO ROTARY CLUB TAXATION AND INTEREST Thd case for the farmer was presented before the Rotary Club at a luncheon today by Mr. H. M. Rushworth, M.P. for the Bay of Islands He maintained that the farmer paid out of all proportion for the benefit received. Of the 66 million acres of the Ce minion, only 22 million were cultivated or in grass and a considerable part of this was only partly improred. This had lead to a plea for land settlement and development. Supporter! of the scheme were placing their case before the Government although ooe: of the land was owned by priTate capital. These people had apparent!turned from supporters of prira:. enterprise to extreme Socialists. Some years ago there were engaged in exporting, but this numbe had now fallen to 53,000. Ten year ago. dairy production amounted to '137 million lbs weight, but there was now more than 300 million poundThis was the only industry to shoe such e.u increase, yet the people then selves were worse ofT, Mr. Rushwor i maintained. Sooner or later tie farmers would organise and might fa ! under the sway of a "go slow” polk’ as other industries Had done when the.'' did not get their due. It was essential that the cost of production be brought down, as the proportion of profit in farming was too low compared with other livelihoodThis was felt most in the back county ■ where conditions were deplorable u many cases. The principle expense was e-i labour, which in turn depended the heavy taxation on the necessity of life. Any increase in the cost o* living fell most 1 eavilv on those < small means. If New Zealand wer self-contained all taxes would passed on and everyone would ' treated alike, but under The preser system the 55.000 primary had to bear the whole burden. Th f ifaid all taxes without being able to pass them on in their exports. Farmers were thus the most heavily taxro people of the community. This pos tion could be yured only by shift-c. the incidence of taxation, said J*l- - High interest rates must also b: passed on to the farmer in the way as taxation, eventually coming to rest on the shoulders of the exporting primary producer who could not pass it on further. The progress of the economic unir of the United States —a great trade area —showed that the Bntisi Empire would have to develop the same lines. The Empire wo® l ** have to become a free trade unit o disintegrate. The colonies no®* have to do their part, or Engl* ll would join the economic unit -'l/‘ Europe, spelling the end of the Era pi re.