UNLESS FARM PRODUCTION IS RAISED“DEVALUATION WILL REDUCE N.Z. STANDARD OF LIVING”

Greymouth Evening Star, 22 September 1949, Page 4

UNLESS FARM PRODUCTION IS RAISED—“DEVALUATION WILL REDUCE N.Z. STANDARD OF LIVING”

AUCKLAND, This Day (P.A.). -—The startling devaluation of the British pound in terms of the American dollar must eventually reduce the standard of living of every person in New Zealand, unless primary production was increased.

This statement was made today by Mr W. E. Hale, chairman of directors, at the annual meeting of the Auckland Farmers’ Freezing Co., Ltd. The increase of primary production, to be adequate, must provide more food for the United Kingdom and additional primary products to supply to the United States of America. The United States could take additional wool, calf-skins, hides, pelts, sausage casings and lamb without affecting her own economy. Will Increase Costs “This new international exchange adjustment will increase the New Zealand producer’s costs,” Mr Hale proceeded. “If the demands of the workers in the United Kingdom and New Zealand for increased wages are met without a corresponding increase in production, insolvency will develop. In fact a near state of insolvency exists now and will not be avoided, unless the output per man in the secondary and primary industries can be increased. “I can see no rapid increase in production in New Zealand, unless the Government of the day has the goodwill of the farming community,” he added. “The farmers will give the rapid increase in production desired, provided: Three Conditions

“1. There is taxation relief? “2. There is an adjustment in the

inequitable Land Sales Act, 1943. “3. There are prices that will allow a competitive price to be paid for labour. . . . .

“Until this is done it is understandable that some farmers may regard it as bad policy to increase production — it would be like signing an execution warrant for the producer’s farm to be taken over under the Land Sales Act.”