HIGHER COSTS TO FARMERS

Press, Volume LXXIV, Issue 22336, 25 February 1938, Page 12

HIGHER COSTS TO FARMERS

Strong Protest By Union I - COMPLAINT OF NEGLECT Government Asked For “British Justice’’ • - ' (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, February 24. Considerable time was spent at a Dominion executive meeting of the New Zealand Farmers’ Union to-day in discussing the effect of recent legislation on the position of the primary producing industries. It was stated that increased costs were being heaped on to the farmers —the increase in freezing works costs, the increase in dairy factory costs, and the general increase in the cost of living. Evidence was given that from all provinces farmers were very apprehensive of the ultimate effects of the present legislative trends. Although the union will not take part, as a union, in party politics, it was felt that farmers in all electorates should take an active interest in politics. , The following resolution, sponsored by the Southland provincial executive, was carried unanimously: “As representatives of the primary industries of New Zealand, upon the welfare of which depends also the welfare of all sections of our people, we wish to protest emphatically once again against the position into which the primary producers are being forced through present conditions and recent legislation. We protest, especially in the face of falling prices, against the endless mounting of our costs. “The recent disproportionate increases in wages and the reductions in hours for certain industries mean a reduction of the spending power of producers and ultimately reduced production. In other words, purchasing power has not had the results claimed for it, as in the face of rising purchasing power the values of farm products are on a gradual and marked decline.

Production Decline Feared “Our Dominion has been made and maintained by the enterprise, industry and thrift of our people, and we fear that if the farmer is forced to work long hours with little hope of improving his position (as under present conditions), the volume of primary production will decrease.

“Moreover, during recent years he has suffered considerable capital loss, as shown by the Dairy Commission and the Mortgage Readjustment Commission. “Our claims and protests have previously been couched in moderate terms, but since no notice is apparently being taken of the economic disadvantages under which the farmer labours, we submit these as indisputable facts and demand British justice for New Zealand s most important industry.” Moving the resolution, Mr A. it. Johnston , president of the Southland Provincial Executive, said that the farming community was becoming increasing concerned at the mounting of the costs of production. In 198b the increased costs for the freezing industry amounted to £450,000. January 1937, saw an addition of £185,000, and the latest increase, announced early this year, added a further £lßo,ooo—a total impost of £815,000 m less than two years. The latter addition was made by the Arbitration Court as a compromise to the union s demands for a cool £500,000. The burden of the dairy industry had recently been increased as a result of legislation by no less than £5,000,000. “Given ‘Cold Shoulder’”

“This state of affairs cannot continue without disastrous results to all concerned, and our organisation will have to take a more definite stand m the immediate future,” said Mr Johnston. “This year will be a very important year politically, though I do not suggest that we should enter politics. We fear the Government has been giving us the ‘cold shoulder,’ for the simple reason that their ear is turned more sympathetically to the more militant organisations. Primary industry, upon which the welfare of all New Zealand depends, should be given more consideration than is at present being given by the Government. If our reasonable requests are not heeded, we should consider a further line of action.” The following resolution was also carried: —“The New Zealand Farmers’ Union, on behalf of the farmers of New Zealand, protests in the strongest possible terms against any increase in the Customs tariff against Australian goods, as any such tariff increase must result in every section of the community paying higher prices for both imported and locally manufactured goods. This increase in -Jhe cost ,of living will very seriously affect the farmer as it will increase farm costs in respect to such articles as wirenetting, galvanised iron, etc., and will (a) automatically decrease the guaranteed price for dairy and other produce, and (b) throw out of balance all adjustments made by the Mortgage Adjustment -Commissions.”