THE IN DEFINITE FACTOR.

Waikato Times, Volume 119, Issue 19900, 1 June 1936, Page 6

THE IN DEFINITE FACTOR.

The unknown factor in the farming- position to-day is costs. Evidence of that was provided by a discussion that took place at the meeting of the Raglan County Council on \Vednesday. If, as the result of recent legislation, local bodies have to increase their expenditure then, 135 the chairman, Mr H. W. \Vilson, put it, it must come out of the pockets of the ratepayers. As yet it is not known what the effect may be on hospital boards, but any increase, unless the Government assumes the liability, will be reflected in larger levies on the contributing local authorities and that, in turn, will mean higher rates. The matter will, of course, have the attention of the Counties’ Association and similar organisations, but it will be some time before the full effects of the new policy can be assessed. There is always a lag in these movements.

The Minister of Agriculture on Thursday made a vigorous reply to the criticism of Mr “K J. Poison, M.P., but unfortunately he did not, when addressing the provincial conference of the Farmers’ Union in Auckland, touch on the question of costs, and that formed the basis of Mr Polson’s indictment. Mr Polson was not able to compute the aggregate effects of the Labour legislation on farming costs, but he indicated the lines along which an udvnnce probably would come. Labour and materials may cost inorc~partieulurly if there should be :1 measure 6f inflationy for relatively the primary producer would then be in a more difficult position. The monetary policy of the Government has not yet been disclosed. For that the country will probably have to await the first Labour Budget. The fears of the member for Stratford may not be realised, but, if the additional expenditure of the Government is to be met out of revenue then taxation will have to be increased substantially. There (-an be no disputing the fact that the Cost of govenance has increased.