ECONOMY INQUIRY

Dominion, Volume 24, Issue 286, 29 August 1931, Page 8

ECONOMY INQUIRY

Primary Producers’ Plight DRASTIC PROPOSAL Another Wage Cut REDUCTION IN PENSIONS (By Our Parliamentary Representative) Drastic proposals for the rehabilitation of the primary producers of New Zealand and the Consequent stablisation of the national accounts, are stated to have been "placed before the Special Economic Committee by representatives of the stock and station agents during the'past two days. A:great deal of evidence has been heard by the committee, and it is understood that a far from pleasant , picture of the immediate future has been painted by those who have advanced* their views. Particular emphasis has been placed upon the plight of the farmers, and it is believed the committee has come to the conclusion that the present position will have to be tackled with a- full recognition of the problems Of the primary producers, and with an endeavour to bring costs into closer harmony with world prices. It is understood that, among other things, the representatives Of the stock and station agents claim that If the producing and financial interests are to regain economic equilibrium, a further 10 per cent, cut in wages, as well as a similar reduction in old age and soldiers' pensions, will be required. It. has also been stated that interest rates on mortgages must be further reduced, although It is urged that current accounts Should not be touched. - - Naturally, the proposal to reduce social services, which was based on the idea that pensioners ar# now receiving more real income than before the cost of living began to fall, did. not please, the Labour members of the committee, who declare that pensioner# should retain, their small allowances because the cost of living has not been reduced, sufficiently to, warrant a reduction. The idea of retaining the present rate of interest on current accounts, too, raised suspicion In the minds of some of th# Labour, members, . who claimed that the stock and station agents would not share the sacrifice on account of. their operations on the share markets. It is dear, on the other hand, that all members of the committee have gained a greater appreciation of the problems which face the primary producer, and as there are further facts to be produced, it is expected that the witnesses Will be recalled at a later date; particularly for cross-examination by members of the committee. ■ i ' The committee sat for a short time yesterday morning, and adjourned until eleven otelock on Monday morning, when evidence will be taken from banking interests. The leading Witnesses will be Mr. W. A. Kiely, chairman of the Associated Banks, and Sir Henry 'Buckleton, general manager of the. Bank of New Zealand. 3 ... On account of many basic differences of opinion between the various schools of thought represented On the committee, it is thought that Labour members will not force a rupture at this stage; but it is almost assured that should any somedial measure# be adopted along the lines that have been suggested at this early period of the deliberations, a majority report would be required to convey them to. the House, . ,