PRICES AND COSTS

New Zealand Herald, Volume LXXV, Issue 23166, 12 October 1938, Page 20

PRICES AND COSTS

STATE OF INDUSTRIES FARMER AND MANUFACTURER SIGNIFICANT. COMPARISONS JOINT STATEMENT ISSUED [by telegbafh—PßESS association] WELLINGTON, Tuesday "The statement that prosperity is here and that the fanner and manufacturer benefit because the Government has placed purchasing power In the hands of- the working people cannot be allowed to pass unchallenged," says a combined statement issued by the New Zealand Farmers' Union and the New Zealand Manufacturers' Federation. 'Hn regard to primary industries it has been admitted that farm costs are equal to those ruling at the time of peak prices in 1929. In addition to this the graduated land tax has been imposed. Wlieu, however, the prices ruling in 1929 and the prices ruling at the present time are compared, the result is illuminating. Returns lor Products "The following prices have been brought to the same currency basis for purposes of comparison:— 19-JB-J9 1937-38 1938-39 Butter (per cwt., stg.) 158s-184s 112s 124s 3d Wool (a bale, star.) £2l £ll 3a t "The value of our exports, expressed in terms of New Zealand currency, was £3,000,000 less last year than in 1929, while at the same tinio the farming community produced in volume of goods half as much again as in 1929. So far as the volume of production is concerned, however, it should be pointed out that our dairy production is starting to diminish. Last year the volume of dairy production declined by 6.6 per cent. , "In regard to manufacturing industries, while there is no doubt the yeur ending Marcli 31, 1937, was one of high production and high employment, warnings given to the Government by leading manufacturers have since then been justified only too amply. In one city employment figures for three industries ns at June, 1937 and 1938 respectively, were 506 workers reduced to 376; 339 workers reduced to 219; and, 305 workers reduced to 258. Contrast with New South Walei

"Every local industry subject to the competition of imports from lower-cost countries is faced with a most serious situation. The gap between costs and selling prices has now so severely shrunk that inducement to enterprise is being slowly strangled. "Meanwhile New South Wales is in a very different position, simply because industry there has not heen subjected to unceasingly increasing costs, in July 42 large factories, which the Government statistician uses as a regular basis of comparison, were employing 1100 more workers than in July of last year, an increase of 5 per cent in employment. "In NewJZealand. on the other hand, the relentless course of ever-increasing costs is a march out of industry into public works, paid for by unemployment funds, and when industry is destroyed the, source of unemployment funds is destroyed also."