PRODUCTION COSTS.

Auckland Star, Volume LXI, Issue 309, 31 December 1930, Page 8

PRODUCTION COSTS.

READJUSTMENT NECESSARY.

FAEMERS AND THE CRISIS

MR. (MATES' NEW YEAR MESSAGE.

Readjustment of production costs to help the farmer to survive the present economic crisis and enable the country to win through is advocated by the Rt. Hon. J. G. Coates, Leader of the Opposition, in a New Year's message issued at Dargaville last night.

Mr. Coates pointed out that at the end of last July the values for the sale of New Zealand's products oversea, by comparison with the previous twelve months, had decreased by approximately £9,000,000. Since that date a further serioue fall had occurred, and it was not exaggerating the position to estimate a* further decline of £11,000,000 for the sale of products for the twelve months

which would end in July next. Therefore New Zealand as a community would have to live on a little less. That would involve sacrifice, and there should be equality of sacriiice. In order to survive, the farmer, who to-day was fighting for his very existence, must compete in the world's markets, and it was of paramount importance that he produce at a cost that would give him an equal opportunity with his competitors. That could be done, and it muet be done. There was little to support the hope that prices would improve rapidly; the tendency was rather the other way. For New Zealand to win out the costs of the producer must be readjusted, and when that was accomplished—and it would be —every incentive must be given those on the land to increase the volume of production. In the task of readjustment that lay ahead all could help, and if that were done, it would not be long before the country and its people were restored to a most enviable position. Wherever possible it would be wise to use locallymade and produced goods, providing the quality and price were right. In 1931 New Zealandere should resolve to give pride of choice to articles made by British men and women in British factories if the required goods were not available in the Dominion.

Mr. Coates concluded: "I wish all a happy new year, firmly believing that if we tackle the problems of the new year sensibly and reasonably, with a. full realisation of the facts, there will follow better times for all and a gradual but definite absorbing of many of our fellow citizens who to-day are sorely tried and worried on account of failure to find employment."