Economics of rural redevelopment? Synopsis

by R W M Johnson, Chairman, New Zealand Branch, Australian Agricultural Economics Society

In presenting the proceedings of this meeting of the New Zealand Branch of the Australian Agricultural Economics Society, we have chosen to print the papers in a different order to that used on the day. After Dr Johnson's opening remarks and welcome to the participants, we print the four papers which largely set the scene for the topic — the role of social research, the meaning of alternative technology, regional planning concepts, and land ownership issues. The next two papers are concerned with an actual case study of a particular area, and the symposium is completed by three more general papers with comments from the Chairman of Kiwitea County Council, from a representative of the Road Transport Association and from the Chairman of the Wellington Education Board. As is customary in these matters the papers are printed as they were given to save time and cost.

As set out in the opening paper, the conference was organised to bring out the rural welfare component of present development in New Zealand. The organisers were concerned to bring out the interdependence that exists between sectors and the importance of development and redevelopment to the different groups affected. The emphasis on redevelopment was chosen to suggest needed changes in direction and what measures need to be taken. It is perhaps significant that the numbers at the conference were depleted on its second day by their departure for another conference on a similar topic in Christchurch sponsored by the Land Use Advisory Council.

In his paper, Allan Levett draws attention to trends which are happening outside the rural sector such as the changing destination of exports, the requirements of the processing sector and the structure of assistance to farming in New Zealand. He then stresses the role of social research in achieving a greater understanding of the effects of these trends, and puts the case for a greatly expanded research effort. In each of the areas of marketing, processing and assistance, he offers suggestions as to the research projects which should be carried out. These suggestions certainly deserve detailed investigation and will be aided, we hope, by the other papers in this volume.

Mr Peter Read's paper is concerned with alternative technologies. Alternative technologies are methods of production and organisation which avoid present-day large scale production and large urban city or metropolitan organisations. The concept appears to imply a large degree of dispersion of economic organisation and a greater degree of self-sufficiency. The author's views represent recent British experience, but similar ideas have recently been emphasised in the writings of the New Zealand Commission for the Future.

Recent New Zealand experience with regional planning is next discussed by two members of the Town and Country Planning Division of the Ministry of Works and Development. The developments in regional planning stem from the Town and Country Planning Act 1977 with its provisions for united councils to take responsibility for regional planning and civil defence. Promising`starts have been made on the West Coast and Hawkes Bay with regional planning documents and the concepts involved are being introduced elsewhere. Such planning has important implications for rural people as it represents a new approach to regional planning which requires adequate consultation at a local level. The authors also plead for special assistance from professional groups and agencies, and agricultural economists in particular will have a major contribution to make.

Finally in this series of introductory papers, Mr Barry Marshall of the Department of Lands and Survey discusses land titles, land aggregation, the Land Settlement Board and Maori land. The paper brings out clearly how the existing institutional structure has impeded rather than encouraged closer rural settlement and suggests changes which need to be made to alter direction.

The subject of the Shepherd/Arthur—Worsop paper and that of the Gillies paper which follows is Akitio County in the Wairarapa area of the North Island. The Ministry of Agriculture and Fisheries has recently carried out a socio—economic survey of the area to link up with an earlier survey of the same area carried out by the Department in 1950. It is most significant that in this one hill country sheep farming area alone the number of holdings has decresed from 175 to 132 and the average size of holding has increased from 1133 acres to 1581 acres. At the same time the area of improved pasture has increased from 7% percent of total area to 70% percent; total sheep numbers have increased by 57 percent; and cattle numbers by 68 percent. The area fertilised has increased from 20,724 acres to 123,722 acres, but the average rate of application has stayed constant. Many fewer people but greatly increased land and labour productivity.

Secondly, the 1979 survey demonstrates that total stock units for the County could increase by a further 40 percent if achievements of top farmers are used as a guide. On the other hand- direct evidence indicates plans to increase production by only 20 percent. The authors conclude that there are still substantial areas of land capable of further improvement and further gains from intensified stocking as well. As far as further labour inputs are concerned, the authors did not find a strong indication of increased need and they conclude that the magnitude of the problem is not great. This important conclusion has far—reaching implications for rural repopulation and this is taken up in Ms Gillies paper next.

Here a "total community" approach reveals that only 39 percent of the actively engaged males in Akitio County are farm decision-makers, and other; on—farm personnel only make up a further 38 percent of those engaged. The remainder are involved in direct or indirect support roles. Furthermore, although total population of the area is static or declining, particular age groups within the total show almost complete replacement between Census dates. Beneath the superficial total picture, considerable change is taking place. The author concludes : "Processes at work are more complex than generalisations from national statistics and unrepresentative farm observations can suggest."

For experience from another area, we can turn to Mr Gibson's paper on the development of Kiwitea County in the Manawatu. Mr Gibson identifies that population drift out of his area was caused by national industrialisation programmes, by rigid district schemes, farm economics and the ready availability of finance for amalgamation. He makes the important point that there is no use in looking to the past - we must plan for the future. He suggests that greater land productivity, including more intensive crops, will be helpful, and that modification of district schemes would help towards this end. Mr Gibson's view is the traditional one but it certainly appears realistic if a sober one.

Rural transport is important as a servicing industry and also as an employer of labour. From the service point of view, rising costs are most significant - 115 percent over the last five years as Mr Harlick's paper shows. Some rationalisation is possible to contain costs but if rural services are to be maintained, increased utilisation of equipment will be essential. Transport appears to be a declining source of employment in rural areas, possibly because of increasing centralisation of services, a point already raised by Ms Gillies.

Finally, Mr C R Hesketh, the Chairman of Wellington Education Board, presents a very useful summary of the economics of running primary schools in rural areas. Up to a point, consolidating schools does lead to economies of scale, but the issue is wider than this as Mr Hesketh shows. In closing a school, education boards need to take account of the physical limits of size, the needs of the pupils, the convenience of transport and the wishes of the parents and the community. In fact, very few schools have been closed in recent years in the Wellington Board's area. Mr Hesketh also provides most interesting data on the costs of school buses for daily running (it varies from $136 per pupil to $720 per pupil in the sample given!) and for occasional journeys for manual training and for special work. It is also interesting that the cost to the taxpayer for Correspondence School is less than that for both primary and secondary school. If Mr Hesketh is right, lack of primary schooling has at least not been a contributory factor to rural depopulation in recent years. Perhaps there is more to say on this?

In addition to the above papers, Mr K Lowen addressed the Conference on Forestry Issues and Rural Development. We regret no record was kept of his address.

While the papers assembled for this symposium covered a much wider range of topics than is usual in discussions of rural development issues, one is left with the impression that a fully coordinated and comprehensive review paper on the subject in the New Zealand context remains to be written. Insufficient information is available as yet on the inter—relationships between farm productivity and the social environment in which farmers operate, and more work needs to be done on the role of transport, education, medical and other services. Mr Hesketh's paper on education shows that the material is available · what is lacking is an integrated view. We are inclined to conclude that future effort should be directed to more careful definition of the problems involved and further research on the above inter-relationships. Widespread concern is being expressed on these matters in such forums as those recently organised by the Land Use Advisory Council; this needs to be followed up by careful and detailed investigation.

RWMJ