FARMERS' PROBLEMS.

Auckland Star, Volume LXX, Issue 35, 11 February 1939, Page 4

FARMERS' PROBLEMS.

LOW PRICES, HIGH COSTS. FREEZING COMPANIES AFFECTED. TAXATION 8/6 IX £1. Reviewing the general position of the meat industry at the annual meeting of the Xew Zealand Refrigerating Company in Christchurch, the chairman of directors, Mr. W. H. E. Flint, stated that meat companies had experienced a difficult year. j "The costs of operation at the factories ! were greatly increased owing to a further steep advance in wages, and in addition an increased crfst of works material, while the fall in wool and by-products seriously affected our trading results," said Mr. Flint. "We were fortunate in experiencing a good return for our main product, iamb, but mutton and beef met with a very disappointing market." "Tax Out of Proportion.'* Dealing with the proposed social security tax, the chairman stated that with this further impost. 8/6 out of every £1 earned would be paid to the Government, an amount which was out of all proportion to taxation levied on companies elsewhere. In addition, land tax absorbed £1101.

"The money to provide for higher wages, shorter hours and social benefits, must, in the long run, come out of the products of the farm," added Mr. Flint, "and if farming ia made unprofitable by excessive costs, an ultimate decrease in production would seem to be inevitable.

"The outcome of the latest conference between freezing companies and the Dominion representatives of freezing workers leads me to hope that responsible

labour circles are beginning to realise this danger. The fact remains that since the end of 1936 the annual cost to the Dominion of labour under the freezing workers' award has been increased by more than £000,000, and when other increases are added, the total is at least i 50,000. Possible Export Restriction. "In recent months the pressure on the British Government from agricultural interests for further protection has become very pronounced, and it now appears possible that some restriction upon export of meat from New Zealand and Australia will be made in the near future.

"Any limitation of our export will involve farmers and the freezing industry m further difficulties, and it is unfortunate that this agitation has developed at a time when our claim for unrestricted entry for our products into Britain may be prejudiced by the control of imports from Britain into this country. "The recovery in trade, which seemed to have begun in the middle of last year, appears to have slowed up. Consumption of lamb is showing a decrease, which is causing us some anxiety, while the markete for wool and nearly all our by-pro-ducts show a declining tendency. We can only carry on and do our best to steer a safe passage through these somewhat troubled waters, hoping that the lower values now current may increase demand and bring improved prices."