HARD WINTER?

Auckland Star, Volume LXX, Issue 99, 29 April 1939, Page 13

HARD WINTER?

FARMERS' POSITION. GOVERNMENT CRITICISED. HON. A. HAMILTON'S REVIEW. Farmers found themselves in a Jfcrious position to day and the position would grow more serious with the advance of winter, said the Leader of the Opposition, the Hon. A. Hamilton, in an address to members of the National party, friends and supporters at Pukekohe yesterday. Mr. Hamilton contended the position was a demonstration of the fundamental fallacy in the balance of the national economy as Labour had "twiste<l it." The Labour Government had fhosen to ignore the importance of the farmer's problem and to-day, with primary production falling because of natural and unnatural conditions, it was being forced to realise that an eeonomv based on a £liti.oo<t.i)oo export income was liable to certain definite alteration with a £>>0,0(M),000 income. Crisis Reached. "There is no more important adjustment claiming the attention of the' Government to-day, and the Govern ment cannot shut its eyes anv longer to the crisis that has already been reached for a large section of men on the land," lie said. Although it might be good policy to produce in New Zealand as many manufactured goods as possible for our own use, it was extremely unwise that too great a disparity should be created between the standard of reward for those concerned with the local markets and for those dependent on the basic primary industries and overseas prices. This was particularly a matter for close consideration since Xew Zealand did not produce manufactured goods for export, and therefore direct competitive production, except under sheltered conditions, was not a stabilising influence. Farmer Neglected. "It is therefore extremely distressing to see primary producers offered little encouragement and a reward not commensurate with their importance in the national economy," Mr. Hamilton went on. "Unless tlie Government realises this before it is too late, New Zealand will be faced with a crisis even more acute than that being faced to-day." It was not the prices being obtained for produce overseas that bad caused this embarrassment, but the unbalance of the Government's administration. The net income to-day of the man on what was termed marginal land had vanished., and his standard of living had been reduced below that of a relief worker. There was no escape for him but to abandon his land and this was happening on a fairly large scale. The Government's approach fo the problem so far bad been along tho lines of the guaranteed prices, and again this year Mr. Xash had stated in effect that the guaranteed price must be directly related to the market price. "Everyone now understands just as clearly that to create an artificial price must inevitably cause the collapse of the whole structure," said Mr. Hamilton.