PRODUCTION COSTS

Evening Star, Issue 22892, 25 February 1938, Page 16

PRODUCTION COSTS

FARMERS COMPLAIN OF INCREASES EFFECT OF LEGISLATION [Per United Press Association.] WELLINGTON, Feb. 24. Considerable time was spent at the Dominion Executive meeting of the New Zealand Farmers’ Union today, discussing the effect of the recent legislation on the position of the primary producing industries. Reference was made to the increased costs being heaped on the farmers—the increase in freezing works costs, the increase in dairy factory costs, and the general increase in the cost of living. Evidence was given from, all provinces that farmers were very apprehensive of the ultimate effects of the present legislative trends. Although the union will not take part as a union in party politics, it wss felt that farmers in all electorates should take an active interest in politics. The following resolution, sponsored by the Southland Provincial Executive, was carried .unanimously:—

As the representatives of the primary industries of New Zealand, upon the welfare of which depends also the welfare of all sections of our people, we wish to protest emphatically once again against the position into which primary producers are being forced through present conditions and recent legislation. We protest, especially in face of falling prices, against the endless mounting of our costs. The recent disproportionate increases in wages and reductions in hours for certain industries mean a reduction of the spending power of the producers and ultimately reduced production. In other, words, purchasing power has not had the results claimed for it, as in the face of rising purchasing power the values of farm products are on a gradual and marked decline. Our Dominion has been' made and maintained by the enterprise, industry and thrift of our people, and we fear that if the farmer is forced to work long hours with little hope of improving his posi-. tion (as under the present conditions), the volume of primary production will decrease. Moreover, during recent years, he has suffered considerable capital loss, as shown by the Dairy Commission and the Readjustment Commission. Our claims and protests have previously been couched in moderate terms, but since no notice is apparently being taken of the economic disadvantages under which the farmer labours, we submit these as indisputable facts and demand British justice for New Zealand’s most important industry.

Moving the resolution, Mr A. R. Johnston, the president of the Southland Provincial Executive, said that the farming community was becoming increasingly concerned at the mounting of the costs of production. In 1936 the increased costs for the freezing industry amounted to £450,000. January, 1937, saw the addition of £185,000. and the latest increase announced early this year added a further £IBO,OOO, making a total impost of £815,000 in less than two years. The latter addition had been made by the Arbitration Court as a compromise to the union’s demands for a cool £500,000. The dairy industry’s burden had recently been increased as the result of legislation by no less than £5,000,000. . “ This state of affairs cannot continue without disastrous results to all concerned, and our organisation will have to take a more definite stand in the immediate future,” Mr Johnston said. “ This year will be a very important year politically. Though I do not suggest that we should enter politics, we fear that the Government has been giving us the ‘ cold shoulder ’ for the simple reason that its ear is turned more sympathetically to the more militant organisations. Primary industry, upon which the welfare of all New Zealand depends,' should be given more consideration than it is at present being given by the Government. If our reaasonable requests are not heeded, we should consider a further line of action.” The following resolution was also carried:— “ The New Zealand Farmers’ Union, on behalf of the farmers of New Zealand, protest in the strongest possible terms against any increase in the Customs tariff against Australian goods, as any such tariff increase must result in every section of the community paying higher prices for both imported and. locally manufactured goods. This increase in the cost of living will very seriously affect the farmer, as it will increase farm costs in respect to such articles as wire-netting, galvanised iron, etc., and will: (a) automatically decrease'- the guaranteed price for dairy and other produce; and (b) throw out of balance all adjustments made by the Mortgage Adjustment Commissions.”