ECONOMIC CONFERENCE.

Auckland Star, Volume LXII, Issue 16, 20 January 1931, Page 17

ECONOMIC CONFERENCE.

REFORM LEADER'S , PROPOSAL

TO CUT PRODUCTION COSTS

'EQUITABLE READJUSTMENTS."

(By Telegraph.—Press Association.)

WELLINGTON, Monday,

"The Reform party views the present economic situation with the gravest concern," says the Rt. Hon. J. G. Coates, in a statement issued to-day. "The decline in world prices has resulted in two years in a reduction of about £20,000,000 in the returns obtained for our farm products, and the fall is estimated at nearly £26,000,000 in the value ■of production of all kinds. This means that the community as a whole has suffered a drop of about 20 per cent in its earnings, and this is affecting the incomes and spending power of individuals, of all classes. "Large numbers of farmers are now in a critical position financially, and they will not be able to continue to produce unless some relief is made available to them in the near future. Many manufacturing and distributing industries in the towns also arc unable to carry on under the existing conditions. Ono of the most distressing direct results of this is the. rapid increase in the number of unemployed. Spreading the Losses. "In view of the decline of the national income and the fall in world prices, the position to-day is that in many industries, including the chief primary industries, the costs of production are now greater than the market return for their product. It has therefore become urgently necessary that the costs of production shall be adjusted in order to enable industry to carry on.

"The Government's duty is to ensure that such readjustments shall be made on an .equitable basis, and that the resultant losses shall be spread as widely as possible over the community,' so that they will not fall unduly upon any section of the fanners, business men, workers or investore, but be shared fairly by all,

"The Reform party believes it highly desirable that the Government should convene a national economic conference, representative of tho primary producers, manufacturers, importers, financial institutions and workers, all of whom are vitally concerned inasmuch as their means of livelihood depend upon effecting such a reduction of costs and such financial assistance and adjustments as will enable the industries to continue. It is clear that the initiative in thesie matters rests with the Government of the daj r , since the Government alone has tho necessary powers. If further powers are required to cope with the position, then the Government should forthwith summon Parliament in order to obtain them. United and Labour.

"It should not be forgotten that when the United party assumed office the Leader of the Reform party publicly offered to support the new Government in all the interests of the Dominion. The Government, however, chose instead to shape its legislation and administration to satisfy the Socialist Labour party, and many resulting measures have had the effect of aggravating the present difficulties of the people. Nevertheless, the Eeform party adhere to its original offer, namely, that it is prepared to assist the Government in passing any measures which are in the real interests of the community as a whole.

"In particular the Government can rely upon the assistance of the Reform party if it will initiate those measures which are now so urgently necessary to restore the Dominion's finances to a healthy condition-, to enable the farmers and business men to carry on and thus make it possible for the unemployed to be reabsorbed in industry."

At the conclusion of the special Reform party conference at the week-end the following resolution was carried unanimously and with great enthusiasm:— "That this meeting of Members of Parliament and ,of the Dominion Council of the Reform party congratulates the Rt. Hon. J. G. Coates upon his continued efforts on l>ehalf of New Zealand. It recognises that in all his work, although a party man, he has always put country first, and the meeting places on record its absolute confidence in him as leader of the Reform party. It pledges itself to stand by him in his endeavours to help the Dominion to emerge from its present difficulties."