Soon after the Government assumed office in March last representations were made from various parts of the country with regard to the scarcity of seeds for the purpose of the spring sowing and it was felt that it would be well to enable local bodies to meet necessitous cases in their areas by enabling them to promote schemes for the supply of seed oats and seed potatoes to small farmers in need of such facilities, the cost to be recovered subsequently after harvesting had been completed. County councils were requested to consider the position locally and, if satisfied that the need existed for enabling farmers to obtain seed supplies, to make arrangements accordingly. The county councils were authorised to arrange with merchants for the supply of seed potatoes and oats on loan terms pending the harvesting of the crops. When the application (which was required to be in the prescribed form), was accepted by the county council an order was sent to the merchant mentioned by the applicant, from whom the applicant arranged to take delivery, having first filled up the prescribed form guaranteeing to the county council the cost of the seed.
The seed supplies were undertaken on this basis in about twenty counties. The total amount of advances involved would be about £25,000.
The supply schemes, being limited to necessitous cases, were fairly small in each area. The supplies included barley, oats, potatoes and fertilisers. Forms of undertaking to repay the amounts involved were signed by recipients in all cases. The recipients were liable for the full cost, including their share of any interest on moneys borrowed, or any administrative expenses. The undertakings provided for repayment on harvesting, or by the 31st December, 1932, but as it is anticipated that portion of the moneys will still be outstanding by that date it is desired to provide for recovery with the poor rate levies for 1933/34.
The Bill proposes to validate the supply of seeds or fertilisers by county councils and to give legal authority to agreements with the local bodies made by any occupier or cultivator of land to obtain seeds or fertilisers. The obtaining of a supply of seeds or fertilisers is not to be regarded as a disqualification for membership of a local body. Various instructions and sanctions given by the Minister in furtherance of the scheme are proposed to be validated, and provision is made for the recovery of sums payable under the Act to local bodies in addition to the method of recovery already set out in the agreements. It is proposed to validate the borrowing by local bodies of any sums applicable to the financing of the seed supply schemes. In point of fact no special loans were raised, the cost in each case being merged in the ordinary county overdraft.
It is felt that legislation of a permanent nature would be desirable for the purpose of empowering local bodies to proceed with supplies in years when the necessity for supplementing individual effort might be necessary. The matter is under consideration by my Department at the moment, and I may be in a position to introduce a Bill early in the New Year to give local bodies the necessary statutory powers in the matter. I am, however, proceeding with the validating legislation at the moment as the necessity for giving legal sanction to the schemes of this year is urgent.
