HIGH PRODUCTION COSTS

Sun (Auckland), Volume III, Issue 669, 22 May 1929, Page 6

HIGH PRODUCTION COSTS

Review By Farmers’ President CAPITAL AND LABOUR IN INDUSTRY PRODUCTION costs as The basic factor in farmers' problems was given a searching review by Mr. \Y. J. Poison. Dominion president of the New Zealand Farmers’ Union, at this morning’s conference session. A continuance of co-opera-tion in marketing and distribution of produce, the sympathetic relationship of capital and labour anil a reduction in tariff rates ware regarded as the factors-in-chief in building the superstructure of the Dominion’s progress—primary production—and solving the country's most vital vicissitudes, that of high costs.

The president said tlie»re never had been a period in the histfory of New Zealand when questions affecting the primary producer called for such careful study and such incessant attention. It was true the farmers had experienced a bountiful secAsou, but he reminded the delegates that if this had not been so there would not have been reflected the bright , picture of prosperity which was now to be seen all over New Zealand. Millions of acres were entiresy dependent upon a good season in order to pay their way at all. At the basis of these problem*'* however, was that of costs, which had to be tackled seriously if the farmers’ cause was to progress, (Hear, hear.) FARMER TO BLAME It was, difficult to bring the people j in the towns to understand that much more would have to be done for the primary producer before the country would reach its proper place in world progress; but —ashamed though he was to admit it—the greatest diffi culty of all was to reconcile the farmers themselves to this viewpoint. “We have not got 50 per cent, of the farmers of the Dominion within our ranks/* Mr. Poison went on. There were three main factors in : high costs —high wages, high tariffs ! and what had been more or less overlooked in the past, but what was an important contributory factor, predatory combinations of capital. The speaker was not one who cried out for a reduction in wages, for the workers had fought during the centuries a harder battle than the farmers. It was desired to see the standard of living improved for all classes without prejudicing any individual one. WORKER AND MASTER Mr. Poison was formerly of the opinion that the Arbitration Qourt was responsible for the inflation of the cost of labour, but his views had been change# by the industrial conference. Tlip Arbitration Court was not responsible for the costs; rather would the cost have been greater without the court. Preference to unionists had been # stated to be the cause of high costs, but only four or five out of 400 unions had broken the preference clauses. Many who were at the industrial conference had come to the conclusion that something more up-to-date, such as a council of industry, was needed. The commission held by Lord Melchet, then Sir Alfred Mond. consistiug of trade representatives and employers’ advocates, came to definite conclusions, Mr. Poison said. “It was a great regret to me that that conference did not reassemble this year to thresh out problems,” he said. “Such conferences of Labour and capital can bring immense results. “We could benefit greatly with a conference of this sort.” UNEMPLOYMENT VIEWS “Concerning unemployment, the position is not more serious in New Zealand than it is in other parts of the world. New Zealand is not in

la peculiar position. In fact. Austin | lians are trying to get into New Ze, ; land, t contend that that is one o’ the things we have to watch close!, j We must not run away with the ide. that, because of this unemployment there is something singularly wroni with economic conditions in the Do minion. “The question of economics need! renewed investigation, front business people, too. While it is said that look at this from the point of view o! the farmer, niv reply is that the poini of view of the farmer is necessarihi the point of view of the Dominion' On successful primary production ansound views which can hold weight can the superstructure be built." “BEATING THE AIR” The argument that New Zealanders } should be made to buy New Zealand ynade goods by protective legislation was based on misinformation and faulty premises. Mr. Poison went on to- deal with tariff questions. Organisation of industry was more import ant* than protective tariffs. “We are only beating the air,” he said, “if in New Zealand we asfc for free trade here; we have sondtc hope of success if we seek ! free- trade within the Empire.” (Hecar! Hear!) “Look: at Fiji and then go to that hub of trade, Hawaii. Hawaii has the fine city of Honolulu and bon workers and industries. It is because it is undV-r the Union of the United States. ffo my mind, no better illustration of ) v h at I am meaning can be given than' that offered by Fiji and Hawaii. “Free tradle within the Empire can be well advocated by New Zealand.” WHEAT PRODUCTION The wheat qyjestion was discussed by the speaker .next, who complained that some of the* mills in New Zealand were working sttort time, and that farmers had been, getting the lowest price for the be st flour-producing wheat. He did not know whether milk had bought luckily, and he said he would not mention Distributors, Ltd, as being a “predatory combination.” After reading extracts from the report of the commission which investigated tariff questions iD Australia. Mr. Poison went o« to speak of New Zealand farming efficiemcy, which was superior to that of the .Argentine and Canada, and equal to That of Great Britain itself. High costs would be kept down by more co-operation in marketing. Cooperative concerns in New Zealand were just as soundly managed as any branch of private enterprise. PRICE OF MONEY Another factor in increasing costs was the high cost of money. For years past the farmers had been striving fair agricultural banks in New Zealand. Today there were millions locked in Ihe banks. The tannini: community was looking for financial assistance, and could not get it. Lower interest notos were needed if New Zealand was to compete with success against Iner rivals, who could get money more cheaply. The Farm Loans Board in the United States was able to lend money to farmers at 5 per cent., inclucling 1 per cent, amortisation. Tlie Rural Credits system was the best for the fanner, for he did not have to pay big* interest rates, obtained a steady flow of money as the bonds were sold, and was not at the whim of any political party that might be in power. Also, -the National Debt was not increased. There was, on thee other hand, the Rural Intermediate Credit system, w-hiefi needed immediate alteration before it became a huge fiasco. Mr. Poison read a letter from the chairman of a flourishing committee, pointing out the weakness of the systemThe Intermediate Credit Association was being affected by the individual lending which was going on through the Public Trustee. The principle under which the system was tvorked was driving farmers into the hands of the private lenders. Then, the associations were too largely in the hands of tine Public Trustee ONE L., BOARD Dealing with land questioiK, the speaker advocated one board instead of the several that listed today. The board should control the settlement of all lauds, and the manner in whicl they were farmed. There was good sheep land in New Zealand being ruined by dairying, and vice versa “What we are gaining on the round; abouts we are losing on the he said. “We aie gaining on the good land by top-dressing. We are losing on the large areas of lands that are going out of production in increasing quantities every year.” He concluded by urging the union to stick shoulder to shoulder and keep on fighting. One day it would “get there.” ?. A vote of thanks was passed to JR Poison for his address, which had lasted about an hour and a-half-