COMMITTEE ON FINANCES.

Press, Volume LXVII, Issue 20333, 4 September 1931, Page 10

COMMITTEE ON FINANCES.

FARMERS' TROUBLES. BURDEN OF INTEREST. ECONOMISTS TO BE HEARD TO-DAY. [From Our Parliamentary Reported.j WELLINGTON, September 3. Tho Special Committeo of Parliament which is investigating tho financial position of tho country, proposes to sit longer hours in disposing of tho final witnesses. It will then give almost uninterrupted attention to the task of devising a plan for economic reconstruction. During tho two sittings to-day tho Committee heard the views of the dairy industry, as represented by Mr W. lorns, chairman of tho Dairy Board, and Mr A. Morton, chairman of directors of the National Dairy Association. Mr W. Goodfellow, chairman of directors of the Now Zealand Co-operative Dairy Company will appear on Monday to give further information about the dairy industry. The witnesses to-day, it ia understood, spoke of the difficulties under which dairy farmers are labouring on account of heavy overhead costs. Desperate endeavours are reported to have been made to reduee farming costs and align them with the low produce prices. The most pressing burden of all was stated to bo the relatively high rate of interest that was still being paid by farmers, whose mortgage obligations were said to be making prospects for this season exceptionally black. The Committee was urged, when considering remedial economic measures, to consider the question of reducing interest rates on farm securities, and easing the strain, upon the already harassed dairy producers. The Prime Minister stated during the day, however, that the the situation as painted by the dairymen, though very black, was not as bad as that represented by the shcepowners' representatives before the Committee last' week. Wages and Arbitration. During this week questions of wage j rates and Arbitration Awards have ' come under the notice of the Committee. It was agreed by retailers who were heard a day or two ago that further salary cuts would be extremely inadvisable, because of the restriction of spending power among the workors, which such a reduction would cause. Employers' representatives, too, are reported to have acknowledged the inadvisability of further wage cuts, though 6trong picas were made for greater elasticity among Arbitration awards, allowing wages and working conditions In certain exceptional cases to bo determined by tho state of the specific industry at the moment, and not by hard and fast formula established by tho Court. This suggestion did not meet with the approval of tho Labour men»* bors, who feared that it would lead to undermining the standard of living established for the worker by the arbitration system. Commercial interests, generally speak- j ing, expressed the desire that wage reduction should not bo overdone, because of the inevitable reaction on retail and wholesale houses. Suggestions which were made on behalf of the Associated Chambers of Commerce during the week for reduction in the siae of Parliament, and general Parliamentary reform, did not progress very far, chiefly because the case was ill-prepared, and delivered orally, with the result that tho Labour members by close cross questioning, weakened tho case. Bankers and Economists. I'urther financial evidence was given this afternoon by Sir Henry Buckleton, general manager of the Bank of New Zealand, who, it is understood, was asked to explain certain aspects of the exchange problem as it affects the primary produce exporter from this country. To-morrow the views of economists will be heard? Professors Murphy, Fisher, Belshaw, and Tocker will give evidence, and this will be supplemented by !Mr D. O, Williams, who hgs t>eej» making a special study of farming problems at Massey Agricultural College, It is hoped that all of these witnesses will be disposed of to-morrow. Tho Prime Minister is hopeful that the evidence of these economists be helpful. "The problems with which wo are faced are economic" he said this evening, "and the economics professors should he able to give some useful evidence bearing upon the state of tho national finances." The House of Representatives has been adjourned until Tuesday so that the Committee may devote its whole time to its task, and a sitting will also be held on Saturday morning, and again on Monday morning and afternoon. By Tuesday the Prime Minister expects that the evidence will have been completed, and that the report will bo ready for presentation to Parliament about a week later.