FARMERS' LOT

New Zealand Herald, Volume LXXV, Issue 23033, 10 May 1938, Page 13

FARMERS' LOT

COSTS AND RETURNS THE GUARANTEE SCHEME "HOODWINKED BY LABOUR" [by TELEGRArit —PIIKSS ASSOCIATION] WELLINGTON, Monday The guaranteed price scheme for the dairying industry was criticised by the leader of the National Party, the Hon. A. Hamilton, in his address to-night. "The Prime Minister says the farmers of New Zealand are in a better position to-day than they have ever been previously in the history of the country," said Mr. Hamilton. " It is obvious that Mr. Savage has not spent much time in the country districts during the last two and a-lialf years. The farmers have been hoodwinked and hamstrung by this Government, and they do not hesitate to say so. "The dairy fanners have their socalled guaranteed price. The price is fixed for a whole season in advance, but has any attempt been made to fix costs? The farmers know the answer to that. They know that, since 1935, their costs of production have risen out of all recognition, and they know, too, that whereas good prices have been 'made possible only by market conditions overseas, increased costs have been brought abotit as a direct result of the Government's policy. Present Season's Prices "The farmer cannot hope to pay competitive rates in wages, and he is in a less hopeful position to-dav than ho was in three years ago, when rising markets, with much lower costs, were permitting him to make a speedy recovery.

"Let us consider the present season," said .Mr. Hamilton, after referring to last season's results. "It is correct to say that the dairy farmers under this year's guaranteed price arc receiving substantially less than the market price of their butter. A reasonable estimate of the market price above the guaranteed price would be about ljd per lb. butter-fat or an estimated surplus for this year of over £1,850,000, for butter exported. That is what the Prime Minister calls security and stability. ".Further, the butter sold on the local market is being sold at a loss to the dairy farmers of about lid per lb. butter-fat, and that amount can never be recovered. It is reasonable to estimate that, dairy farmers supplying butter factories, unless a bonus — to which farmers had no legal claimis paid above the guaranteed price, will he getting about £2,250.000 less than the market price for their butter. Compensated Price Principle

"Tt is this ridiculous position experienced to-day .under the Labour Government's policy that has stirred farmers to demand what thev call ' compensated prices.' The principle underlying compensated prices is that farmers, who have to sell their products against the competition of the world, claim a comparative reward for their labour and capital with tho rest of the comml'"jt~means that internal costs should not he allowed to rise any higher than a just comparison with export prices. If costs are pushed up higher than export prices warrant, then the farmers want consideration."