Manufacturer And Farmer

Dominion, Volume 31, Issue 127, 23 February 1938, Page 13

Manufacturer And Farmer

Sir, —“Farmer’s” letter in “The Dominion” of February 14, following on a statement by. the Manufacturers’ Association, illustrates how two essential sec'tions of the community can quarrel with one another when neither section fully understands their common problem. . Neither section has stated the essential basic facts connected with both farm production and factory production. May I suggest to both parties they study the problem with these facts in front of them (1934-35 figures) : £ Farm production value 59.200.000 .Sold in New Zealand 19,560.000 Industrial production 38,009,000

Total production £97,200,000 The farm production exported, amounting to £40,000,000, can be paid us only by qur ace / ting imports. Having obtained all we can that way, there is only one way to get more goods—make them qqrselves. I draw attention to these basic’ facts because our producers, both farming and industrial, seem to forget them when disputing, matters of detail like tariffs, exeh.ange, and subsidies. All these leave matters as a whole just where they were, however must they affect sectjonal interests. Alay I draw the attention of the disputants to a few facts which are not published in our statistics but which must surely be responsible for some of our difficulties? The Year Book production and import figures used by our statisticians are values at the farm gate, factory door, of exship’s slings. Now these goods are really onlv halfway through their production until delivered to the ultimate purchaser. To get them there adds 50 per cent, to their cost and value, a total of some £140,000,000. These values must be obtained from purchasers or else some producers and distributors will fail to repover their costs and go bankrupt, or at least lose their assets. Now the .total of incomes made up in the same year was £103,000,000. according to the" Year Book, and this is an inflated total due to some incomes being included several times, If our disputants —the farmers and the manufacturers—looked into this discrepancy of £140,000.000 of production and £103,000,000 of income they would drop their sectional interests while they combined to overcome and bridge the gap. —I am, etc., t BASIC FACTS. Lower Hutt, February 20.