PRODUCE PRICES

Otago Daily Times, Issue 25804, 27 March 1945, Page 4

PRODUCE PRICES

INCREASE ESSENTIAL FARMERS AND STABILISATION (P.A.) CHRISTCHURCH. Mar. 26. “As a result of recent happening* the farmers are now entitled to abandon the agreement for stabilisation made in their name by the Dom.mon Farmers’ Federation and the Government, and they will have to consider in the very near future their attitude to stabilisation,” said Mr W. Wt Mulholland, president of the New Zealand Farmers’ Union, in an interview today. “ Recent incidents culminating' In a pronouncement of the Arbitration Court on increased standard rates of wages, if they have not indicated the abandonment of stabilisation; have suggested that stabilisation has been given a very severe shock,” continued Mr Mulholland. Obviously a review ofthe agreement with the farmer s’ representatives would be necessary. It might be that the farmers would be willing to make a new agreement if the Government showed signs of definite action to regain control. The adjustments made in farm prices last year, Mr Mulholland said, were made on account of costs which, in the main, could not be .held by the stabilisation policy,--being- -caused by increases in the overseas costs of . imported goods. “But now there must be considerable increases due to higher wages, which must mean a higher charge against the farmer,” commented Mr Mulholland.. “The farmer is) now becoming liable for increased charges within New Zealand, and the basis of the agreement for stabilisation has been broken.” . • . The difference between the amount being received by the Government for produce sold overseas and what was being paid out to the farmers represented several millions of pounds a year, said Mr Mulholland. Payments were being made to the Meat and Dairy Accounts of the difference, but the major payments made by the Government to cover farmers’ costs were charged to the Stabilisation Account. For fertilisers alone, probably more than £1,000,000 in subsidy would be given this year. Both the United States and Canadian farmers had received greater increases than the New Zealand farmer had received between 1939 and 1944.