FARMERS’ COSTS

Ashburton Guardian, Volume 58, Issue 195, 31 May 1938, Page 3

FARMERS’ COSTS

PREMIER’S REPLY TO PROTEST. DISSATISFACTION EXPRESSED. (Per Press Association ) WELLINGTON, May 30. Dissatisfaction with the Prime Minister’s reply to a. protest against the “endless mounting of costs, especially in the lace of falling prices,” was expressed by the executive of the New Zealand Farmers’ Union. The protest, which originated from Southland, stated that the recent disproportionate increases in wages and reductions in hours in certain industries meant a reduction in the spending power of producers, and would ultimately reduce production. Ju other words, increased spendng power had not had the result claimed for it, because in the face of rising purchasing power the value of primary- products was on a gradual but marked decline. The 40-hour week, it was contended, was unreasonable, uneconomic, a%id in many cases unworkable. In recent years primary producers had suffered considerable capital loss, and they were forced to work long hours with little hope of improving their positions under present conditions.

The Prime Minister (the Rt. Hon. M. J. Savage) replied that he was unable to understand the reference in the resolution to the “marked decline” in the prices for primary produce. For butter and cheese the return to the farmer was protected by the guaranteed price. Prices for meat products were quite satisfactory from the farmers’ point of view, and returns from recent wool sales showed very good prices for this year’s clip. Union’s Comment. “The reply shows either failure to understand, or total disregard of the disabilities under which the primary producers of this country are expected to carry on,” the executive of the union now states. “There has been a marked decline in prices for farm produce. The returns to the farmer are not protected by the guaranteed price because the benefits have been cancelled out by the increased costs. Although meat prices are still payable, there has been a drop of from 12 to 1.7 per cent, between lamb prices ruling during 1936-37 and 1937-38. The season’s returns from wool show a decline of about 40 per cent. The very fact that some industries are working 40, some 44, and some 60 or 70 hours a week shows how unreasonable, uneconomic, and unworkable the Government’s 40hour week policy is.”