260 WHEAT PRODUCTION IN NEW ZEALAND 



duction of these industries is but a small fraction of the 

 total supply necessary to meet the demands of local 

 consumers, consequently prices are raised more or less 

 on the whole supply, imported and locally produced 

 alike, and the consumer pays for the protection, while 

 at the same time the fostering of "parasitic" industries 

 retards progress in the great rural industries. 



But the protectionists will ask, "Why raise huge 

 quantities of primary produce for export? Why devote 

 our whole energy to agriculture?" A few observations 

 are sufficient to establish the wisdom of such a policy. 

 The fundamental fact is that capital and labour applied 

 to rural pursuits in New Zealand give a greater return 

 than would the application of a similar quantity of 

 capital and labour in any other pursuit. Secondly, we 

 require capital in the form of machinery and other 

 requisites for the further internal development of the 

 country, and, as must be admitted, these can be obtained 

 most cheaply from other countries, and can thus best 

 be paid for by exports of primary produce. Thirdly, 

 we have built up a huge National debt, the interest and 

 sinking fund on which cannot be less than 4,000,000 

 per annum, and this can be paid for only in produce. 



(c) Some Arguments for Protection to the Wheat 

 Industry* Returning to the question of protection in 

 relation to the wheat industry, let us examine some of 

 the arguments which are brought forward by the advo- 



* Clause 8 of the Platform of the Farmers' Union states that 

 "taxation through the Customs should be for the purpose of 

 raising revenue, and not for protective purposes. " Yet many 

 farmers of influence in the Union advocate protection for the 

 wheat industry generally, and, in particular, retaliation against 

 Australia. 



I have seen it stated in relation to the present (1917) dearth 

 of wheat that there was only one way out of the difficulty. 

 "The import duty on all flour should be raised to 3 per ton, 

 and on wheat to Is. 9d. per cental." It is hoped that the 

 discussion given here will prove that this is both unnecessary 

 and unwise. 



