"Vicious Spiral” Of Rising Costs

Press, Volume C, Issue 29520, 23 May 1961, Page 16

"Vicious Spiral” Of Rising Costs

(New Zealand Press Association)

HAMILTON, May 22.

It was a matter of grave concern to all dairy farmers that while they had stayed on the same level of prices for butterfat the vicious spiral of increasing costs continued, said Mr J. O. Toner, chairman of the dairy section of Waikato Federated Farmers, in his report to the annual section conference in Hamilton today. Increases affecting dairy farmers directly had been the incorporation of the 24 per cent. General Wage Order in the basic rates of pay for dairy factory workers and freezing workers, and shipping freight increases, said Mr Toner. Dairy farmers could doubtlessly name many other price increases.

Much time and thought had been given to this problem of ever rising costs and if there was to be no great improvement in the butter markeit firm action must be taken either to stop or counteract the rise in costs which could cripple the industry.

“A return of 315 s per cwt is needed for our butter to meet the basic prices of 32d and while it is selling at 250 s the dairy industry account is going into debt at the rate of about £160,000 a week.” said Mr Toner. ‘‘With secondary industries competing with each other for the available labour force in a period of full employment. the farmer is an also ran in the labour stakes and w’hile some do not agree with the view, I believe immigration is essential.” he said. "It has been said it costs money to bring immigrants into the country, but overfull employment is costing us a great deal more. The Government is stepping up the rate of immigration and we should insist that a fair proportion of these be farm workers.

“A policy of giving experienced men greater opportunities of acquiring their

own properties would also attract more young men to a farming career. ""“Of this country’s export income, 95 per cent, is derived from our primary industries and too many people are not aware of. or ignore this fact,” said Mr Toner

"If the present standard of living in this country is to be maintained, more people must take more interest in the problems of those earning the funds necessary to support the conditions now enjoyed,” Mr Toner said.