FARMERS' TROUBLES

Evening Post, Volume CXIII, Issue 53, 4 March 1927, Page 10

FARMERS' TROUBLES

PEICE FLUCTUATIONS

AND WAGES

LATTER MUST REMAIN

STABILISED

RECENT YEARS REVIEWED

The position of the farmers, as third party in the recent joint application for a fresh award by the freezing companies and Freezing ■ Workers' Unions, was dealt with at some length in an interesting review given to-day in the Arbitration Court by his Honour Mr. Justice Frazer, who insists that wages cannot be allowed to fluctuate in response to sudden market depreciations. "The primary producers of this Dominion," he says, "are in the unfortunate position of having to pay approximately CO per cent, above 1914 prices for their purchases, while they receive a considerably smaller percentage increase over their 1914 export prices. Meat has dropped considerably since 1925, when the index number was 2085, the base period (1000) being the years 1909-13. The index number for 1926 was 173 d. As the index number for 1914 was 1218, tho percentage increase for 1925 was 71 per cent., and that for 1926 was 44 per cent, above the 1914 prices. The index number for January, 1927, which is the latest available, shows a resovery to 1549, but as the January returns include an exceptionally large output of lamb, they may be disregarded. The years 1923, 1924, and 1925 were, however, exceptionally good years, tho index numbers being 1875, 1808, and 2055 respectively. The year 1926, with an index number of 1755, compares favourably with tho average for the years 1917 to 1921, in which the index numbers were respectively 1761, 1777, 1780, 1716, and 1706, and it compares moro than favourably with the year 1922, in which the index number was as low as 1522. Wool, which may properly bo considered along with meat, dropped from 1101 in 1914 to S4B in 1921 and 939 in 1022, but rose to 2233 for 1925 and 1431 in 1926, and in January, 1927, stood at 1459. Skins, hides, and tallow, which stood at 10S9 in 1914, 2426 in 1919, and 1522 in 1922, averaged 1876 for 1926. The oxport prices index numbers for meat that I have quoted group beef, mutton, and lamb together.

BEEP, MUTTON, AND LAMB PRICES

"The Government Statistician has kindly supplied me with the following export price statistics for beef, mutton, and lamb separately, for the years 1909-13, the export prices per hundredweight wore as follows: Beef, £1208; mutton, £1311; lamb, £1907. Tor January, 1927, the corresponding prices wore: Beef, £1169; mutton, £2218; lamb, £3042. As compared with the base period, beef shows a drop, but as the principal exports' arc mutton and ■lamb it is of less consequence. Mutton and lamb, on the othor hand, show very satisfactory increases. From the point of view of export prices, the position of the farmer is less satisfactory than it wa3 in 1924 and 1925, but considerably better than it was in 1922. I am prepared to coneedo that tho difficulties of tho farmers are not now due altogether to inflatod land values, but thcro does not seom to bo cause for pessimism in regard to the movement of export prieos. All over the world farm prices dropped in 1!)21 and 1922, while prices of manufactures remained high. Since then, farm prices have been alternately high and low, with fairly rapid fluctuations, while the prices of manufactures have shown a steady downward trend.

BETTER TIMES COMING.

"All economic history justifies tho prediction that, sooner or later, prices of farm products and prices of manufactures will meet on a common level. Tho present revival of trade in Great Britain will no doubt have a stimulating effect on the prices of our primary products. While I have every sympathy with tho farmers in their present position, with wool, meat, and butter all at a comparatively low level of prices, I cannot allow that, consideration to influence my judgment in the direction of reducing the standard of living of the freezing trades workers below tho general level of: similar work-, crs. My reasons are: (1) That wages must, in the common interest, lie kept stablo over fairly long periods. Kothing is so unsettling and productive of confusion and industrial turmoil ils rapid fluctuations in wage rates. They cannot fluctuate upwards or downwards as rapidly or as violently as the export prices of primary products, and they are ilxed in this country at a level which is not above that which can bo paid at tho present time; (2) that labour cannot be regarded as a mere commodity, but must, if at all possible, bo paid a wage consonant with "the reasonablo requirements of civilised life; (3) that tho present increases that I have thought proper to award will probably not affect tho farmer at all.

A TRIFLING INCREASE,

"The increase of Is Gd per 100 on tho slaughtering rate amounts to onesixth of a penny per sheep. Assuming that tho wage increases to slaughterhouse assistants mid other workers, add another sixth of a penny, the total increase is one-third of a penny per sheep. Tho average flock of sheep in l!)" 0 nuinberod 994. If 400 were slaughtered in a year, which .-is probably an over-esti-mate, the increased coßt would bo 11s. I do not think, therefore, that the position of the farmer will be jeopardised by tho increases awarded to freezing workers. Further, tho Court was not informed that tho increase of "s Gd per 100 in tho slaughtering rntes conceded by tho Auckland companies had been passed on to the farmers. On tho other hand, it was informed that the competition of tho more successful companies had tended to keep tho freezing charges of tho other companies down to the same level.

NEW ZEALAND FARMERS LUCKX

"Beforo leaving the subject of the position of the farmers, it may be well to observe that in many parts of tho world, and particularly in the "United States of America, the farmer lias found himself in difficulties more serious than those of the Now Zealand farmer. The remedy that cau best meet tho case is tho adoption of more scientific methods of. fanning and marketing, with co-operation wherever possible.

A STRICTURE,

"I feel impelled, also, to m.iko a Tjrief rcfci'cnco to the numerous resolutions that have been passed by different bodies of fanners during tho pendency of the present proceedings, and communicated to the Press, calling on tho'Government to introduce legislation for the repeal of the Industrial Conciliation and Arbitration Act. It is, of course, quito proper and legitimate for interested bodies to agitate for the repeal of an Act or tho abolition of a Court, but it is unfortunate that they should have chosen a time when an important case was pending bciore this Court to pass the resolutions in question. It may have been only a coincidence, but it is to bo regretted that at such a time any concert-<:d action should have taken place, that might have had the appearance of being intended to influence or intimidate the Court."