LAND INDUSTRY

Wairarapa Times-Age, 15 June 1938, Page 7

LAND INDUSTRY

PREMIER AT MANAWATU SHOW

VIGOROUS DENUNCIATION OF SLUMP TALK.

AIMS OF THE GOVERNMENT OUTLINED.

(By Telegraph —Press Association.)

PALMERSTON N„ June 14.

Talk of future depressions and the viewpoint that slumps must be borne patiently as visitations of Providence were deprecated by the Prime Minister, the Rt Hon M. J. Savage, when declaring the National Dairy Show open today. Mr Savage also referred to the important place in the national economy occupied by the agricultural industry and paid a tribute to the influence of this and other shows toward the improvement of the country’s primary produce.

Mr A. Burgess, president of the Manawatu A. and P. Association, and the mayor, Mr A. E. Mansford, each welcomed Mr Savage, expressing thanks for the Government’s donation of £250 to the Royal Show. Mr Savage was greeted with cheers by the large gathering. The influence of the Manawatu show and other shows in constantly improving the quality of the country’s dairy produce was a matter of'great moment to the industry and to the economic welfare of the Dominion, said Mr Savage. The need for constant improvement in quality could not be stressed too strongly or too often. “The dairy industry means a great deal to New Zealand,” he said. “Our country is not yet 100 years old, and during its comparatively short existence an amazing transformation has taken place.” New Zealanders today were justly proud of a most creditable achievement.

THEiGREATEST FACTOR.

The greatest factor in the country’s economic development had- been the pastoral industry. Thanks to refrigeration this country had developed a new type of farming, characterised by dairying and fat lamb raising. Thanks mainly to the unremitting and intelligent work of three generations of farmers, this had matured into a highlyspecialised business conducted on intensive and scientific lines. Today New Zealand, in addition to being the world’s greatest exporter of frozen mutton and lamb, was also the world’s largest exporter of dairy produce. The primary producers had a position and a reputation which could only be maintained by constant care. The Government would continue to lend every assistance. The value of dairy cows and dairy stock alone in the Dominion was more than £16,000,000; the value of dairy land was estimated at £125,000,000, and machinery and plants on farms and dairy factories were worth £10,000,000. FARMERS’ PART DONE. “The welfare of the dairy industry is intimately associated with the welfare of the country itself, but I may be permitted to remind you that the Government has set itself the definite objective of restoring the basic primary industries to a state of prosperity,” said Mr Savage. “The farmer has done his part. He has continued to produce in increasing quantity and improving quality, but of what use is that if he cannot obtain sufficient markets or adequate prices? It is the duty of the Government to see that those who produce the goods on which our national wealth is based, obtain a decent standard of living. RECESSION NOT INEVITABLE. “We have been hearing this year and last threats of a slump, mainly from interested persons who wish to scare the people into a sense of insecurity. I should like to repeat now what I have stated on previous occasions —that there is absolutely no necessity for any trade recession unless business men prefer manufacturing slumps to manufacturing rather more useful articles. So long as there is an atmosphere of good-will, reasonableness and give-and-take there can be no slumps. When the nations of the world accept as a national responsibility the task of directing national economy on rational lines, there will be no wild booms or slumps.

“Here in New Zealand during the past two years we have been putting our house in order with the very object of counteracting these fluctuations. The problem of putting the national house in order is a many-sided one. Largely it is a problem of economic and monetary policy, but it is also a problem of orderly production and distribution. We have proceeded a long' way toward laying the foundation of a better order. Whatever events occur overseas I am confident that the success of our actions in New Zealand can stand any test.

“I for one am prepared to go a long way to prevent a recurrence of the sufferings and hardships which are still fresh in our minds. My critics say I have no experience of business and that for that reason I am overlooking the realities of the situation. Well, I will say this and no sane man or women will disagree with me: That the real test of progress is not to be found wholly in stock exchange quotations, big company profits, trade returns or statistics of production. It is to be found rather in the social wellbeing of the people. I am concerned above all things in seeing that their welfare is maintained.

“1 would like to deprecate in the strongest terms this talk of slumps or future depressions, but still more strongly do I wish to condemn the point of view that slumps must be borne with patience and suffering as visitations of providence. I have said many times that what human stupidity can bring about, human intelligence should be capable of correcting. That is all that the present Government is trying to put into effect.”