LABOUR CLAIMS

Wairarapa Times-Age, 18 June 1938, Page 7

LABOUR CLAIMS

MUCH ASSISTANCE GIVEN TO FARMERS CHEAPER MONEY AND OTHER BENEFITS PRIME MINISTER'S ADDRESS AT DANNEVIRKE (By Telegraph—Press Association.) DANNEVIRKE. June 17. Speaking to a large and enthusiastic audience in the Dannevirke Town Hall, the Prime Minister, the Rt Hon M. J. Savage, replying to the mayoral welcome, dealt with the assistance given farmers by his Government. He said it was a curious fact that the Government was being blamed foxhaving loaded the farming industry with intolerable costs. That charge was contrary to the truth. He said without, any fear of valid challenge that the Labour Government had already done more for the farmer than those administrations which they knew as purely “farmers’ governments.” Quite apart from the benefits of the guaranteed price scheme and further substantial benefits under the Labour Government, in addition to various subsidies, the Government's policy of cheap money had been of immense value to the farmer. “Consider interest rates alone,” said Mi’ Savage. Two years ago, on July 7, 1936, to be precise, he had said that the day of high interest rates had gone. How had the farmer fared as a result of that policy? Today more farmers were getting cheap mortgages than ever before. For every six farmers with mortgages at 41 per cent in July, 1935, today 26 farmers were receiving the benefit of that cheap rate. It was the Government’s deliberate policy that was keeping interest rates low. If the Government had consented to raising interest rates to local bodies all interest rates would inevitably have been driven higher. If supporters of the National Party had had their own way that was what would have happened. For more than 12 months insurance companies and othei' lending institutions refused to lend money at 3,> per cent., and it had been only the firm stand by the Government which kept all interest rates low. MORTGAGE COMPARISONS He quoted statistics to show the difference between mortgage rates in New Zealand and New South Wales, showing that rates in the latter place were substantially higher. Mortgage rates generally in New Zealand were 1? per cent lower today than between 1925 and 1932. The If per cent saving in interest rates on new farm mortgages registered last year meant a saving of £183,400. On all farm mortgages (at present £135,000,000) as they fell due for renewal the saving was at a rate of £2,360,000 a year. Mr Savage quoted results of the mortgage relief legislation, and said the Government was doing everything possible to expedite mortgage relief. Farmers who were still oppressed by excessive mortgage debts should remember that the present Government did not put the financial yoke around their necks. The Nationalists favoured higher interest rates. It had been part of their creed. The cheapening of borrowed money was not the only benefit the present Government had given the farmer. Substantial assistance had been given in the form of increased subsidies. GUARANTEED PRICES In regard to guaranteed prices to the dairy-farmer, it had been asserted without any proof at all that the gain had been swallowed by increased costs. Every farmer knew such assertion was very wide of the mark. As a result of the Government’s policy of guaranteed prices the dairy-farmer was today enjoying a better standard of comfort and a firmer measure of security than he had evei’ experienced before in this country. If the dairy producer had been left to the caprice of markets in the 1936-37 season, the monthly butterfat payments would have ranged from 10'fd to 7:Jd a lb. The introduction of the Labour Government's plan of guaranteed prices that season resulted in a final pay-out by the dairy companies of over 13Jd a lb for butter-fat. There was and could be no valid objection to the principle of the Government’s guaranteed price policy. The only complaint might be as to the adequacy of the p-ice. “I have already said the Government is prepared to give the fullest consideration to the complaint, knowing that there is no better alternative available to the Government's formula for fixing prices”. The desire of the Government was solely to give the dairy-farmer a fair deal, and there was no other objective. He claimed that the guaranteed price system was the greatest boon ever given to the dairy-farmer in New Zealand’s history.