RISING COSTS

Otago Daily Times, Issue 23514, 31 May 1938, Page 12

RISING COSTS

DISSATISFACTION' EXPRESSED FARMERS AND FORTY-HOUR WEEK REPLY TO PRIME MINISTER (Special to Daily Times) WELLINGTON, May 30. Dissatisfaction with the Prime Minister’s reply to the protest against “ the endless mounting of costs, especially in face of falling prices,” is expressed by the executive of the New Zealand Farmers’ Union. The protest, which originated from Southland, stated that the recent disproportionate increases in wages and reductions in hours in certain industries meant a reduction in the spending power of the producers, and would ultimately reduce production. In other words, spending power had not had the result claimed for it, because, in the face of the rising purchasing power, the value of primary products was on a gradual but marked decline. The 40-hour week, it was contended, was unreasonable, uneconomic, and in many cases unworkable. In recent years primary producers had suffered considerable capital loss, and they were forced to work long hours with little hope of improving their position under present conditions. The Prime Minister replied that he was unable to understand the reference in the resolution to a “ marked decline ” in prices for primary produce. As far as butter and cheese were concerned, the return to the farmer was protected by the guaranteed price. Prices for meat products were quite satisfactory from the farmers’ point of view, and returns from recent wool sales showed very good prices for this year’s clip. “ The reply shows either failure to understand or a total disregard of the disabilities under which primary producers of this country are expected to carry on,” the executive of the union now states. “ There has been a ‘marked decline’ in prices for farm produce. Returns to farmers are not protected by the guaranteed price because benefits have been cancelled out by the increased costs. While meat prices are still payable, there has been a drop of from 12 to 17 per cent, between lamb prices ruling during the 1936-37 and 1937-38 seasons. Returns from wool show a decline in the vicinity of 40 per cent. The very fact that some industries are working 40, some 44, and some 60 or 70 hours a week, shows how unreasonable, uneconomic and unworkable the Government’s 40-. hour week policy is.”