SHEEP FARMERS’ PLIGHT

Evening Star, Issue 23324, 21 July 1939, Page 15

SHEEP FARMERS’ PLIGHT

LOW OVERSEAS PRICES AND HIGH INTEREST COSTS HIGHER EXCHANGE ADVOCATED

, [l’Ett United Press Association.]' WELLINGTON, July 20. Declaring that at no previous period iu the history of the New Zealand Sheep Owners and. Farmers’ Federation had the position of its members been as difficult and fraught with such dangerous possibilities as at the present time, the president (Mr H. D. Asland) told the annual meeting of the federation to-day tthat, producers, for ■■ export with two maior' problems—high internal costs and low overseas prices. "The results of the application,of n policy of extended protection with a view to encouraging the development of oof seoondary industries, and statutory wage increases iu order to raise the money wage .levels within New Zealand sufficiently to meet the increased costs of goods and services are becoming increasingly evident each month," Mr Acland said. "It is now clear that unless an adjustment between the level ' of internal costs and our exports returns is made, no prospect of profit for the sheep farmers, especially those depending on returns from their wool and store stock, can be looked for.” , - Mr Acland also said that to add to their difficulties due to lower prices overseas, they were also facedx with a definite, limitation of the quantity of meat, for export to what was admittedly their only market —Great Britain. In view of the need for the maintenance of a supply of breeding ewes from the hill country to the farmer for lamb fattening, a straightout subsidy under producer control might bo justified, at least for the coming year, which might be one of adjustment ,to the altered conditions. Failing that, it was calculated that a levy pf 6/32d per lb on all wethers and lambs killed would provide approximately £312,000, a fund which would meet the position financially, but might result in correspondingly lower prices being paid for store lambs by farmers fattening for export. • Mr Acland said the position could be met at least temporarily *if the British Government agreed to store, say, 500,000 carcasses of ewes as an emergency war supply. Referring to the position of the Dominion’s London funds, Mr Acland said it was vitally necessary to expand exports, which meant in New Zealand giving more encouragement to the farmers. No Government could afford to maintain a policy of too high protection ■’for industries and services to its domestic market at the expense of its exports. Ho was more than convinced that the only way-out of the present difficulty was by raising the exchange rate. Failing a rise in the exchange, Mr Acland added, it jwould appear to be essential to reduce expenditure on unproductive works and bring labour costs generally down to a point where productive industry could continue without using up capital or unduly mortgaging its future ability to give employment.