STABILISATION

Auckland Star, Volume LXXV, Issue 182, 3 August 1944, Page 6

STABILISATION

EFFECT ON FARMERS

REPLY TO CRITICISM (0.C.) WELLINGTON, this day. "I have noticed that there has been some misgiving among farmers . who have thought that stabilisation has resulted in discrimination against the primary producers," said the Prime Minister, Mr. Fraser, in addressing the Dominion dairy conl fcrence to-day. "They have thought that farm prices alone have been stabilised, and contended that other classes of the community have not been subject to the same restrictions. I "I must state quite definitely that stabilisation has not operated unfairly against the farming community. It has been said that the Government has attempted to apply stabilisation too rigidly to farm produce prices. In'point of fact, one of the most important features of the work of the Stabilisation Commission has been the almost constant attention to questions of adjustments to farm prices. Numerous adjustments have as a result been made to farm prices, some of them important. May I instance the prices for town milk producers, fruit growers, poultry farmers, adjustment to the meat schedule, cost allowances last year for the dairy industry, and the price inducement for increased production granted this year. Adjustments of "Wages "On the wages side, there also have been adjustments made to meet particular problems, and to ameliorate anomalies and injustices, which were created by the original stabilisation regulations; but, in general, stabilisation of wage levels has worked effectively because the general level of award rates had increased by only 0.8 per cent, or less than 1 per cent, between December. 1942, and March, 1944. "I think I can say with certainty, that the aggregate of salaries and wages has increased very considerably over the past year. Apparently the adverse significance of this figure is modified when it is remembered that these greatly increased earnings are the result of many more people in employment and drawing wages, which include overtime. The statistics also include increased pay to servicemen, amounting to a considerable sum. "When the present heavy demands for labour are reduced, as the war situation eases, and as demobilised men once more take their places in industry, these expanded earnings are likely to fall back to normal. On the other hand, farm prices related to costs will be I maintained at their present level as long as the present policy continues. "Misleading" Comparisons "Another important matter, which has led to some questioning as to the justice of the stabilisation policy to the farmer, has been the impression • given by prevalent criticism that the prices obtained by New Zealand farmers are much lower than the comparative prices in other countries. As was stated recently by the president of the Farmers' Union, Mr. Mulholland, the price comparisons which have been used in support of this criticism have been misleading. To obtain a comparable picture of New Zealand farm prices with those of other countries, regard must be had to their differing stabilisation itechniques, and the fact that the level of farm costs is much higher in any country which apparently receives high prices. New Zealand, with its stabilised prices and costs stabilised at relatively low levels, is preserving its advantageous position for competing in the world's post-war markets. Nor can price comparisons be justifiably made between New Zealand's export prices and the internal local prices in other countries, and a full statement on this subject will be made by the Minister of Marketing. "Not Relatively Worse Off" "I am satisfied that when the various prices are analysed and a comparable basis is arrived at, New Zealand is not relatively worse off than other countries., The frequent assertion that dairy farmers are tied to'the 1938 price, while their costs have soared to 1944 levels, cannot be sustained. The dairy conference is well aware that in the dairy cost adjustments last year the claims of the industry were fully satisfied. "It is worth recounting here that, since 1939, there have been at least four separate increases to the dairy industry since the outbreak of the war: (1) The 1942-43 war cost allowances; (2) the 1942-43 factory labour cost allowance; (3) the 1943-44 dairy cost adjustment; and (4), the 1944-45 wage cost allowance. In addition, there have been increased prices for pig meats and there is to be a pig feed crop subsidy. "As far as the dairy industry is concerned, it has been working under the benefits of a guaranteed price since 1936-37, and in spite of ' the fact that ,that period has been i generally one of rising prices, the dairy industry account has been consistently in debit. In spite of this ; fact,' the guaranteed prices for dairy < produce remain; the Government ' policy." ■■ .. '