PROBLEMS AHEAD.

New Zealand Herald, Volume LXVII, Issue 20760, 31 December 1930, Page 12

PROBLEMS AHEAD.

NATIONAL EFFORT URGED.

READJUSTMENT OF COSTS,

MEETING LOWER VALUES

[BY TF.I.EGRAPH. —PHESS ASSOCIATION. DARGAVIIjLE, Tuesday,

The following statement was made by the Leader of the Reform Party, Rt. Hon. J. G. Coates, at Dargaville this evening:—

"It is with every sincere thought for the future welfare of my fellow citizens that I extend to them my best wishes for a happy new year. The economic outlook for 1931 is not so healthy as we would wish it to bo. New Zealand is, for her wealth and development, almost entirely dependent upon the volume of her exports of primary produce and the price thefee products realise in the world's markets. It should be remembered, too, when using tho term 'world's markets,' that it is Great Britain that absorbs the great bulk of our exports. "At the end of last July the values for the sale of products overseas, by comparison with tho previous 12 months, had decreased by approximately £9,000,000. Since that date a further serious fall for similar products has occurred, and it is by no means exaggerating the position to estimate a further decline of £11,000,000 for tlie sale of products for the 12 months ending next July. If this is the position, and I believe it is, it must be obvious that there will he £11,000,000 less circulating this year among our people as compared with last year, when, as at July, 1929. there was £9,000,000 less than in the previous 12 months.

The Need of Sacrifice.

"The position must surely be that we, as a community, must live on a little less. It will mean sacrifice and the experience will be new to many, but whatever the sacrifice, let us be very certain that there is equality of sacrifice. The farmer has met the full shock of the world deflation consequent on lower price levels for his exportable products. To day he is fighting for his very existence; his earnings have slumped; and he is facing reconstruction.

"Tho New Zealand farmer must, in order to survive, cbmpeto in the world's markets. He must survive and carry on if our country is to progress, but it is of paramount importance that he produce at a cost that will give him an equal opportunity with his competitors, many of whom aro n: ::h nearer to Great Britain that we are. Many of our farmers are asking themselves the question : 'Can it be done ?' Well, it can be done and it must be done. "Perhaps other members of the community are hoping that something will turn up. Everyone hopes that prices will improve, and improve quickly, but there is little to support tho hope. The tendency is rather the other way.

Lower Costs Necessary.

"For this country to win out- the costs to the producer must be readjusted—all manner of costs—and this applies to all forms of production. When this is accomplished, and it will be, every incentive must be given to those engaged in our key industry to increase the volume of production. "Wo should never lose sight of the fact that this country is blessed as no other country is blessed. It has climatic advantages and a productive capacity peculiar to itself, together with a people possessing a will, character and determination that have seen them through past trials. These same essentials will stand to New Zealand again. "The farmers' earnings have declined seriously, the national earning power of the nation has been considerably affected, and everyone in the Dominion—commercial and financial, distributor and worker —is feeling the results of tho lower prices. I hope and I believe that all our citizens will realise the salient features of our present economic situation and brace themselves to tho task of readjustment that lies ahead.

"Wo can all help, and if we do it will not be long before we put our country and its people in a most enviable position.

Supporting Local Industries.

It is due to our fellow citizens that we be loyal to our own. We should realise that there are many engaged in industries in our own country, and wherever possible it would be wise to use our locally-made and produced goods, providing the quality and price are right. But let us, in 1931, resolve to give pride of choice to articles made bv British men and women in British factories if the required goods are nbt available in New Zealand.

"I would like to say that I, and those associated with me in Parliament, will always endeavour to place the country's welfare and interests above all other considerations. On their behalf I can say that each member's thoughts and actions are given for the public weal. We realise that tho trials of "the times call for thoughtful, wise and considerate piloting, and it will be our duty to serve in the interests of the people. 'Again I wish all a happv new year firmly believing that if we "tackle the problems of the now year sensibly and reasonably, with a full realisation of tho facts, there will follow better times for all and a gradual but definite absorbing of many of our fellow citizens who to-day are sorely tried and worried on account of failuro to find employment."