The Farmers' Claim For Recompense

Manawatu Times, Volume 61, Issue 43, 21 February 1936, Page 10

The Farmers' Claim For Recompense

Success For Manawatu Union „ \ Just before the end of the year the Manawatu Tanners’ Union decided to enlist the support of other districts in an effort to have the exporters’ rights recognised in the new monetary adjustments. Arrangements wore made to have Colonel Closey deliver a series of addresses to the Taranaki and Waikato Tamers’ Union executives and -later to present 3 plan to the Dominion Eccutive. Unqualified support and approval was obtained and the New Zealand Tanners’ Union Executive meeting in Wellington, unanimously approved the -scheme and decided to place it before Cabinet. The Prime Minister expressed appreciation of the research displayed in the scheme and promised favourable consideration of the objects of the plan. The Manawatu Executive is to be congratulated on its initiative and success in this matter, which should have tremendous influence upon the prevalent views concerning the farmers’ rights.

' Details of the Scheme Following aro the complete details of the scheme as read to tne members of the Cabinet by Mr YV. J. Poison, JM.P.: .Naturally us primary producers we are luteresYCa find concerned in any plans the 'Government contemplates for ensuring to the farmer an improved recompense for his exported produce. YV o aro attracted by the statement in a ouoklet issued some tune ago by ,tne fion. Minister of Finance, “f agree that payment to farmers must be measured by me same tape as is used to measure the payment to others who render equal service.” In seeking the fulfilment of this equitable recompense we encounter the chronic disability of the exporting producer which muy oo related in these terms. on the one hand the products of this Dominion are sold on tho open markets or the world subject to fierce competition. ri) iiw exporters of these products must on the other hand buy ail their requirements on our domestic market wnere tariff protection and wages and price regulation have conjointly produced a price level very much higher than that in the outside world. (J) The exporting farmer, therefore, is compelled to seii row and buy high and ,this must be remedied if the objective is to be achieved of “measuring returns by the same tape measure.” We do not think it has anywhere been more fittingly expressed tfian in the booklet issued by the Hon. Frime Minister wherein ue says:—“By what rule of logic do peupie arrive at the conclusion- that most of the other sections of the community should have guaranteed incomes, but that the farmer must have his income fixed by Tapidly changing external conditions* Should not ail sections of the people who are giving useful service have some guarantee of minimum conditions in keeping with their aggregate power to produce. The farmer is entitled to tho difference between the amount that he receives in the market oversas and the amount that it takes to maintain a standard of living in equitable relationship to the Dominion’s production from all sources. Farmers should not be forced to carry the economic loss which results from producing for export which is the only means available to the wholo of tho people to meet their overseas obligations.” “We are moved by this declaration to approach the task of amelioration, either to bring down the costs of the farmer or to expand his money returns. We are invited to believe that free trade is dead and we have no way of escape through reductions in tariffs and costs. Although we are still of opinion that this is the soundest course for the country to. take, we realise that in the present circumstances a different course is being taken so we would like to present the farmers’ case and the facts which we consider relevant thereto. There is also in the Prime Minister’s booklet a tribute to the efficiency of the dairyfarmer which, encourages the hope hat in the guaranteed prices scheme there will be nothing other than fair recompense for these price disabilities. The extract which we value and quote is as follows: Production More Than Doubled in Ten Fears. Tho farmer has more than doubled his production during the ten years ending in 1933. In that respect he will compare favourably with any other dairyfarmer in the world. In 1924 the collective efforts of the dairyfarmers of New Zealand resulted in the export of .1,2(59,455 cwt. of butter, while in 1933 the amount exported had increased to 2,635,247 cwt. And yet fifty per cent, of them are practically bankrupt. Tho reason is that while they have more than doubled their production in ten years they received little or no increase in their money returns. “Dairy farmer not at fault: In view of that will anyone say that the dairy farmer is at fault. On the side of production it appears as if there is no need for further examination as we are already aware of what the average fanner can do.” We applaud this tribute to the efficiency and deservedness of the dairyfarmer and we regret that this recognition is not more general amongst urban sections of the community. The gradual rising tide of costs of production on dairy farms in the last ten years in spite of the general fall in land prices has caused the dairyfarmer to economise in every direction including the hiring of labour. Recourse has had to be made to cheap boy labour througn the various immigration schemes and since these have stopped only the extended employment of the iarmer’s wife and children and the exceptionally long hours that he himself has worked for seven days in. the week have enabled him to keep going. Indeed this could not have been done at all in very recent years if the relief legislation' had not assisted by putting a largo amount of tho farmer's finan- ; iia l obligations into a suspense account leaving him with little more than the ] tip of his nose above w’ater. We wish to make it clear that in ad- : vancing our claim we seek no advant- 1 *ge, we ask merely for the social jus- 1

tico of being able to obtain the exchange value of our produce in goods, as expressed in terms of New Zealand money. We would, however, like to set out that in our efforts to link 'the ex- , porters’ recompense with the New Zealand price level, we do not wish to endorso the wisdom of its uneconomic manipulation. The method: We affirm that the far- , mer is producing efficiently, that this produce gains for New Zealand a good . measure of needful imports in ex- : change with the outside world, but that l tho farmer’s actual reward falls very > much short of this measure of return. > We claim that tho true reward of the exporter should commensurate with the value of the wealth he has procured for t the Dominion rn foreign trade. If through tariffs and other imposts the ; average import is raised to a new price 1 level then a money compensation should ! be added to the exporter’s return. The real and fair estimate of the exporter’s 5 right reward would be built upon:— 1 (a) The j rice-levei or tne export in 1 the country accepting it. 1 (b) The price-level of our imports in the country which supplies us. (c) The great increase in the prices of the imported article due to tariffs, ’ taxes, and charges and the increase!) weight of servicing costs which in turn , are partly due to these same tariffs, taxes and charges. 3 Will Others Suffer? 1 The effect upon other sections of the 3 people must be considered for no claim t for justice must involve doing injus--3 tice to others. We find that those concerned with 3 domestic trading are protected in as 3 much as their buying and selling re- ' mains on the somo undisturbed level. ' Further we.noto that every trading 3 group and individual in New Zealand B is empowered to levy a charge for goods supplied and work performed. r The merchant’s bill, the worker’s t wage and the professional’s fee are all j presented by the principal concerned and embody a demand or charge which is. compiled from costs incurred, j The exporter alone must take what 2 is given overseas yet meet the charges j which are presented against him for , New Zealand goods. If, therefore, the , trading returns of the exporter are . equitably adjusted there should be no ensuing charge of injustice, i Vocational Trend. , We share the expressed concern of i your Government at the prevalence ox . unemploy’- mt in this lightly developed ; land, and we declare that the disabili- : ties set out above have contributed in i large measure to this economic malady. : YVe assert that the sub-division of i trades and the ratio of activity in occupations had in past years become ; related to a policy of progressive farm ' develop ent and the termination of 1 rural expansion has thrown the em- - ployment trend into confusion. We believe that with a recompensed return ’ to farmers and the re-emergence of ■ farm profits, the surge of unemploy- ! ment would give place to the quickened ’ orderly advanco of industries in train. Safeguard for the Future. ! Serious as the- position is to-day we ! are still more concerned at the consequences of an upward curve of the domestic price level. The economics of farming are profoundly affected by ; stability of prices over long periods ’ and no clear policy of husbandry is , likely to be pursued when the costs and , prices ratio is constantly changing. An . assurance of a general margin of cover . independent of social changes and their price-level impact would be a revitaiis- . ing agent in farm life. National Solvency. , We wish to present to you a eoncepi tion of the serious outlook for New Zealand’s land values should there be no plan of conception ior the exporter. The value of land is determined by ■ the wealth which it will produce over ■ the costs of handling it. This Dominion has large areas of infertile or ; marginal land which to-day offer no : return comparable with the cost of ! settlement. As costs have risen the proportion of uon-farmable land has increased and any addition to the New Zealand price level must further extend this area un- ; less means are adopted to link the farmer’s returns to his outgoings. As the unoccupied areas of New Zealand form a considerable portion of our national assets the importance. of this point need not be emphasised. New Zealand’s Destiny. Although as a farming organisation we are adopting an attitude which might be termed partisan to our calling, we are impressed by the grave issues which turn on the question of national occupation. Wo have noted with satisfaction .that throughout the world the value of the food products we sell as appreciated in terms of industrial and other products, and we wish to ensure that the Dominion shall continue to produce and sell those pastoral products which command such relatively high v-.lues in every European country. On the other hand we are apprehensive of any tendency to bend our ambitions towards industrial occupation. I Noting the "erce competition amongst :

manufacturing nations, the development of • ass production, the big unit and district specialisation as paramount factors in this machine ago we are thankful that we have chosen the pastoral occupation for New Zealand. We trust these advantages of favourable climate, handy geography in respect of roadsteads and deep-sea ports and applied technique will be utilised to the full in planning the Dominion’s vocational future. Finally, we beg to state that the Dominion executive of tho New Zealand Farmers Union is most anxious to be of the maximum assistance to the Government in their dealing with this critical and most urgent problem, and they will be at the command of the Government by being constantly available if further consultatiou is desired before this matter of the future prices of dairy produce is finally decided. Extract from tho British Board of Trade Journal, 13/6/35. Price levels of various countries: — Prance. Foodstuffs .. 4. 350 i Industrials .. .. * .4 346 General index .. ... .. .. .. 347 » (1914 level equals 100.) Germany. Agricultural Produce .. .. 99.8 Industrial materials 91.6 (1913 equals 100.) Belgium. Foodstuffs 406 Metals 373 Chemical fertilisers 374 (1914 level equals 100.) Italy. Foodstuffs (animal) . 337 Foodstuffs (vegetable) ~ .. 270 Average .. .. .. 308 General average 281