PRIME MINISTER DEFENDS POLICY ON POOL MONEYS

Press, Volume XCV, Issue 28266, 2 May 1957, Page 12

PRIME MINISTER DEFENDS POLICY ON POOL MONEYS

(New Zealand Press Association)

WELLINGTON, May 1.

The Prime Minister (Mr Holland) said today that it was unfortunate that the president of the Federation of Labour (Mr F. P. Walsh) should have tried to create the impression that farmers were a specially-privileged group. “Production and good prices overseas have brought prosperity to the farming industry, and that has meant prosperity for the whole of New Zealand,” Mr Holland said.

The Prime Minister was commenting on the speech made by Mr Walsh yesterday at the annual conference of the federation in Wellington. Mr Walsh said that the Government was yielding to pressure by continuing to treat the dairy farmer as a member of a privileged class. “In essence, Mr Walsh is sighing for the days when a Socialist government determined how much of their own money the farmers should get,” Mr Holland said. “The present government has certainly abandoned that principle.” Mr Holland said it was important to remember that any deficiency payments in respect of the guaranteed price for dairy produce or the support price scheme for meat would be met out of the funds of the industries concerned. These funds had been accumulated from the sale of farm produce overseas.

“I regret very much that Mr Walsh should have suggested that the men whom the farmers themselves have chosen to represent their industries are irresponsible,” Mr Holland said.

“The Government’s experience in discussions with them has been quite the reverse. Indeed, the Government has been so impressed with their grasp of the problems of the farming industry and their regard for the welfare of New Zealand that it is supporting the farmers’ delegation in their trade discussions in Britain.

“Mr Walsh might well be asking his federation to consider how the general economy of New Zealand is to be maintained at its present high level if farming incomes are not kept up. For example, average wages in New Zealand have increased by £5 15s 8d a week, or 74 per cent., in the last seven years. I am sure that

trade unionists will appreciate that this has been made possible by increased production of and increased returns for our farm exports, and that they have a direct interest in seeing that these are maintained.”