GOVERNMENT ASKS PUBLIC CO-OPERATION

Stratford Evening Post, Volume II, Issue 355, 12 September 1933, Page 2

GOVERNMENT ASKS PUBLIC CO-OPERATION

Adjusting Costs with Prices Press Association. —Copyright. Wellington, Sept. 7. General co-operation to aid the Government in its policy of adjusting costs with prices formed the subject of an appeal by the Acting-Prime Minister, the Rt. Hon. J. G. Coates, when making his opening address at the annual conference of the New Zealand Fruitgrowers’ Federation in Wellington yesterday. The Government’s policy, he, considered, was entitled to the support of the country whether some interests were in agreement with it or not.

“1 should .'i l -.2 to call to your attention some of the price movements concerning Now Zealand in the last few years; by doing so, it will be demonstrated perhaps some of tho features that the Government has to keep in mind,” said Mr. Coates. “It shows some of the efforts that have’ been made not only by the Government but also by the whole country to overcome the problem that faces us.” Everyone that had studied New Zealand’s economic construction must come to the conclusion that the country “lived on the soil,” he continued. The prices New Zealanders received for their products were a reflex of their economic condition. General retail prices of July, 1933, when compared with those of May, 1914, were found to be 27 per cent, higher, wage rates were 37 per cent, higher, and farmers’ costs 25 per cent, higher. But export prices, including timber, and allowing for gold, were 2G per cent, lower than in .1914, while export prices of butter, wool, cheese and meat had fallen by 29 per cent. The whole problem had been to close the gap between costs and prices, and that was tho task of the Government. It was a definite, clear-cut policy. If the magnitude of the fall in prices could be conceived, much of the pres nt distress could be accounted for. Between 1928 and 1932 the direct fall in prices revealed a loss to the producers of New Zealand in exports of approximately £67,200,000, and tho lowest level of prices was not reached until about March of this year. That did not reveal the condition of internal prices, but it was known that they were closely based upon the parity of prices overseas. The problem was now being pretty well faced. It was a very difficult one. and it was a test of whether democracy could survive—and it would survive—or whether the policy of the Government werq. to be given an opportunity or not. Very difficult influences affecting the Government in carrying out its task had been met with, and in these days it was absolutely necessai-y that the leaders of the country must be trusted. The policy that had been mapped out in January last was entitled to the support of the country whether some interests agreed with it or not. He thought the Government was entitled to the general support of the Press in the policy that had been launched upon, but so far that had not entirely been forthcoming. Quite a number of those engaged in industry failed to realise the broad outline of the policy, which was to assist in adjusting costs with prices. General co-operation was necessary. “The outlook is somewhat better,” he said. “We have been encouraged by tho fact that there is a change in prices—almost an all-round improvement, although it does not apply to the fruit industry.”

It was possible that new fruit markets were to be used. Mr. Coates continued. He was unable to speak about them because nothing definite had been arranged, and would not be arranged to the satisfaction of the industry unless its representatives assisted with the arrangements. There had been discussion concerning export to the United States and other countries, and so far as the Government was concerned it wished to associate itself with whatever marketing efforts were being made. But while it was necessary in these days to bo ever vigilant, as to prospective markets, the internal market itself must not be overlooked. Retail fruit shops in the country clearly indicated the str’ries made by the industrv in the last few years, while the Duality of some others of the articles to be seen in shops made one blush with shame. Speaking of overseas imports, Mr. Coates said the Government thought that upon the linos the country depended rested the success of the farming industry and it was not right that outside products could be dumped in haphazard.

Lemons, for instance, wore grown in New j Zealand in quantities sufficient for the i needs of the whole local market, and of I a quality that would compare favour- j ably with any grown elsewhere, but yet ! prices the year round ranged from 4s a 1 case up to 2,"is. That commodity was an ! example of the need for arrangements 1 so that regular supplies could be made throughout the year.