COMPENSATED PRICE

Dominion, Volume 31, Issue 203, 25 May 1938, Page 6

COMPENSATED PRICE

Gap Between Selling And Working Costs RONGOTEA MEETING Dominion Special Service. Palmerston North, May 24. The compensating price campaign—designed to close the gap between the level at which a farmer is compelled to sell his produce and the costs which he has to meet directly and indirectly through tariffs and other charges—was further advanced last night when nearly 100 farmers attended a meeting at Rongotea and heard the scheme elaborated by Mr. F. U. Roberts, Hamilton, its chief organiser. Mr. R. Craig, president of the Rongotea branch of the New Zealand Farmers’ Union, presided, and he ruled that a motion supporting the campaign ami according Mr. Roberts a hearty vote of thanks was carried. There was some opposition voiced. Mr. Roberts said that the four main points of the scheme were that a compensating price would enable a farmer to pay competitive rates of wages: it would allow him reasonable interest on the capital invested in his farm and stock, and enable him to meet increased costs imposed by legislation, including the tariffs; ami would allow him a remuneration commensurate with the service he gave to the community. The history of high costs in the Dominion was traced over the past 40 years, and Mr. Roberts contended that they were largely brought about in the first place by the system of tariffs which followed the circle of costs going up internally. followed by demands for. increased wages, and then higher tariffs. Other sections of the community received compensation for high costs through tariff increases and arbitration awards, he said, -he manufacturer was thus able to pass his costs on. Workers received increased wages as the cost of living rose, and he argued that the farmer, who could not pass his costs on, should be compensated his costs drastically reduced. After using graphs and figures to show that the farmer had done his job and that the gap existed. Mr. Rijberts appealed to the meeting to view the problem from the point of view of producers as a whole, and not from a purely party angle. He then went on to relate this history of the campaign, and said producers were supporting it from the North Cape to the Bluff in the most practical way by financial contributions. He also outlined how the campaign would be conducted in the future.