ECONOMIC FACTS.

Alexandra Herald and Central Otago Gazette, Issue 1813, 4 November 1931, Page 7

ECONOMIC FACTS.

TWO ilAJOfi PROBLEMS. "The sheepowning industry is faced at the moment with two major problems—firstly, internal costs of production and secondly, overseas prices for our produce," said .Mr 11. D. Acland, at the annual meeting of the N.Z. Sheepowners' Federation. "The first is immediate to lis in Now Zealand and capable of solution, but the second is entirely outside our control. With regard to internal costs, it is imperative that all costs must be quickly and drastically reduced, and by costs I mean wages, transport, stores, rates, taxes, rent, and iuterest. As you are aware, the Court has already made a reduction of 10 per cent, in wages on all awards, but rent and interest, with rates and taxes, must also be materially reduced. If this is not done, then these items of costs will be automatically reduced, for the reason that fanners and the community generally will be quite unable to pay them on present prices from overseas.''

"Last year 1 said that deflation of costs must keep pace with the deflation in prices," he said. "tlufortunately this is not happening at the present time. I also said that the main questions to lie dealt with by Parliament and politicians were questions not of politics, but of economies. It is hard economic facts that have to be faced by farmers to-day, and Ave must deal with them according to economic law

or go under. "As New Zealand is dependent on its primary products for practically the whole of its outside national income, this cannot be allowed to happen, and the farmers' budget must be balanced. If it is not, then the country's balance must be painfully short, and unemployment and destitution, that is now being felt, must get steadily worse."