INFLATION FEARED

Grey River Argus, 21 March 1945, Page 6

INFLATION FEARED

FARMERS AND WAGE INCREASE WELLINGTON, March 20. An official statement by the New Zealand Farmer’s Union .says: The Arbitration Court's wage pronouncement must have a profound effect, on the Government’s stabilisation policy. Unless to adjust the policy to the altered circumstances is clearly announced at once, nothing can prevent inflation of prices through the higher wage costs and higher prices, causing further increases in wages in the familiar spiral. Farmers arc watching with keen interest and some apprehension for indications of the Government’s policy. By virtue of their adherence to the stabilisation policy expressed in an agreement between the Farmers’ Federation and the Minister of Stabilisation, the farmers are accepting part only of the price paid for their accounts established under the agreement. The Federation’s adherence to this agreement was conditional '“on the stabilisation policy, as outlined by the Prime Minister in announcing the Government’s policy, being fully inplemented, and failure at any time of the Government fully to implement that policy is to absolve the farmers from adherence to these provisions.”

The increase in wages granted by (he Government is a clear breach of the stabilisation policy announced on December 15, 1942, and in consequence, farmers have a right to terminate the agreement. Farmers organisations must now very seriously ‘ consider their attitude to the agreement, and the development of the Government policy in the immediate future will profoundly influence their decisions. The economic stability of the Dominion hangs on >he Government’s actions in the next few weeks.