THRESHING MILL WORKERS’ AWARD.

Evening Star, Issue 21037, 26 February 1932, Page 11

THRESHING MILL WORKERS’ AWARD.

TO THE EDITOR. Sir,—Judging by the report of the Provincial Executive of the Farmers’ Union, it seems the farmers are widening the breach between the rural workers and themselves almost to breaking point. The farmer is barking up the wrong tree when ho blames wages for the present financial stress. Why not attack interest charges? It would seem that by the attack on wages he is taking the line of least resistance. What is keeping the farmer down and in many cases driving him off the land is the burden of interest.* In lowering wages the farmer or any business man is biting off his nose to spite his face, because the worker is the farmer’s best customer, both here and in England. How much of the farmers’ meat, wool, butter, etc,, can the worker buy on his present low wage? What the farmer wants to reduce is his interest charges which are at present crippling industry. In giving evidence before the commission on unemployment set up by the Government. Mr E. J. Fawcett stated that wages bad nothing to do with the high cost of farming. Ho showed the percentage of cost fot labour, maintenance, and interest on the average of the best farms of 100 acres, producing 1511 b to 1701 b of butter-fat per acre. The proportion of interest to other; charges js remarkable. Labour, whether performed by servants, the farmer himself, or members of his family, is included in the cost. Mr Fawcett estimates labour at £7 per cow. His figures are as follow:—Maintenance, cost £258 12s, percentage of total 21.5; labour at £7 per cow, £374 ss, 31.0; interest at 7 per cent., £569 6s, 47.1. Mr Fawcett distributes the maintenance costs as according to the following tables:— Top-dressing, £92 Bs, percentage 35.8; rates, etc., £2B 4s, 10.9; fencing £l6, 6.2: cultivation, £9 10s. 3.7; power, £3O 4s, 11.6; depreciation, £32 12s, 12.6; sundries, £49 14s, 19.2. Interest includes 7 per cent, on the total capital invested. The table shows; (a) That direct labour costs, including farmer and family, are less than onethird of the total cost; (b) that maintenance costs added to labour only slightly exceed one-half the total cost; (c) that interest on the investment at 7 per cent, is nearly half the total production costs; (d) that the most urgent relief needed by the farmer is a reduction of money costs; (e) a reduction of the interest rate from 7 per cent, to 5 per cent, would reduce money costs to £357 8s 9d, or by more than £2OO per annum. So here is proof that interest costs and not wages are at fault. The farmer should endeavour to have his interest cost reduced instead of reducing the workers’ _ wages, and thereby reducing his own income. —I am, etc., Evelyne Bennet. February 25.