GUARANTEED PRICES

Evening Star, Issue 22682, 23 June 1937, Page 11

GUARANTEED PRICES

CAN'T ALWAYS BE RAISED CUTTING OF COSTS THE SOLUTION HOUSING MAY SOLVE FARM LABOUR PROBLEM [Per United Press Association.] HAMILTON, June 23. “We cannot go on raising the guaranteed price again and again, but once having arrived at a fair price to pay for dairy produce, we must turn our attention to cutting costs. There are ways in which we can do this, and wo are going to devote a good deal of our time to xt,” said the Minister of Agriculture at Tekowhai. Costs (he said) could be cut by the reduction of the interest rate, rationalisation of methods of production, low-ex-ing of the price of manures, and by the efficient working of the zoning system. Manure prices had ah-eady been stabilised to some extent, and something would probably be done to reduce the number of manure-producing factories in the country. There were at present only two working up to their full capacity, although the output had increased generally. Something haxl already been done with zoning in the Waikato, continued Mr Lee Martin, and the zoning principle would prove one of the best things which had been done for dairying. . The Minister stated that good wox-k had been done with the housing problem. Tenders had been called, for a thousand houses, and it had been hoped that they would be finished by now. _ In reply to a question, Mr Lee Martin said the rent would bo 15s lower in Wellington than for any other house of _ equal standard; also, the houses being constructed by the Labour Government were of higher standard than any built by any local body or past Government. They did not intend to restrict this activity to the towns, but also to build in the country. Although this had been investigated, it presented many difficulties, and he thought that if that policy was pursued it would do a great deal towards solving the farm labour problem. The main trouble with farm labour was not wages, or the fact of having to work in the country, but adverse conditions. If they were given good accommodation he felt sure that they xvould work on the farm.