DAIRY INDUSTRY

Otago Daily Times, Issue 22257, 9 May 1934, Page 8

DAIRY INDUSTRY

—«t> VIEWS OF MR SAVAGE INCREASED PURCHASING POWER - REQUIRED. (Peb United I'besh association.) : WHANGAREI, May 8. Speaking to a Urge meeting at the Town Hall last night, the Leader of the Opposition (Mr M. J. Savage) stated that, while everyone $ would, agree that the" dairy industry ne'eded assistance, all would not agree with the attitude taken up by the Prime Minister in the matter of the restoration of wages and salaries. The Prime Minister had stated that the time was not opportune for the restoration of the wage and salary cuts; but it was difficult to see where any real assistance to the dairy farmer could come from unless the people had the money to pay any increase in the price of butter that might be decided upon. If the income of the people was allowed to remain as at present, it was an economic fallacy to think that any rise in the price of butter could possibly benefit the farmer, except at the expense of all others. Even then it could not be a lasting benefit, as it would probably mean the use of less butter at higher prices.

The way out of the difficulty was to have a thorough inquiry into farm mortgages, with the object of having them readjusted on a basis that would allow the farmer to enjoy a reasonable* standard of life. That could be accomplished if the dairy farmer were told what was expected of him, and were given a guaranteed price, based upon a readjustment of farm costs; but to raise the price of butter, or any other commodity, without at the same time making financial provision for the people who were expected to pay the increased price, would only be fooling the farmer and everyone else concerned. The only foundation for increased prices was increased monetary incomes for those with less than an ample standard of living. Mr Savage received a vote of thanks and confidence. WORK OF COMMISSION FIRST MEETING HELD. (Peb United Press Association.) WELLINGTON, May 8. The first meeting of the Royal Commission appointed to inquire into the dairy industry was held to-day. There was a preliminary discussion this morning with the Prime Minister (Mr Forbes), the Minister of Finance (Mr Coates), and tlie Minister of Agriculture (Mr Macmillan). The first witness will bo heard to-morrow. The proceedings will not be open to the public.