NEW CONDITIONS

Evening Post, Volume CXXVIII, Issue 11, 13 July 1939, Page 7

NEW CONDITIONS

FARMING COSTS

GOVERNMENT SHOULD ACT

The Government was challenged by Mr. J. M. Allen (National, Hauraki) to give a clear indication of its plans, if any, to reduce farming costs. Mr. Allen said that bitter experience had shown that the guaranteed price had been insufficient to meet the rising costs of primary production. The dairy farmers were on the losing end of the stick. The position had become acute, and it was for the Government to say whether it would raise the price or reduce costs. The effect of the new conditions imposed on the farmers had been to re- j duce the size of the Dominion's sheep flock and also to restrict the production of wooL In view of these facts the report of the Commission which had been appointed to study sheepfarming problems would be awaited with the keenest interest. Since the Government had been in office the sheep farmer as well as the dairy farmer had been forced to carry an extra burden of costs. A SERIOUS PROTEST. Wages had been increased. While . the farmer did not object to the payment of high wages, he had a serious protest to make when he was denied his chance of competing in the labour market because of the attractive rates of pay offered by the Government to men on public works. In addition to higher wages, the farmer had to meet increased factory and freezing costs. Increased hospital levies were also eating into his income. There was no gainsaying the fact that increased local rating for hospital purposes fell largely on the farmer, and that as a result of the Social Security legislation taxation had risen by 33 per cent. To all these additional costs had to be added the higher prices now required for hardware. This had put the whole of the primary industries of New, Zealand in a state of jeopardy, and it was for the Government to say at once whether the farmer was to carry on. There ■were two alternatives: an increase in prices, or a reduction in costs.'