FARMERS' PROBLEMS

Te Awamutu Courier, Volume 59, Issue 4220, 6 December 1939, Page 11

FARMERS' PROBLEMS

TO INCREASE PRODUCTION. COSTS REDUCTION DESIRED. Of the several speakers at the mass meeting held at Claudelands on Monday afternoon, most Te Awamutu and district interest centred in the remarks of Mr A. J. Sinclair, secretarymanager of the Te Awamutu Cooperative Dairy Co., Ltd., and a member of, the Dairy Council set up by the Minister of Marketing. Mr Sinclair was the spokesman in the interests of the farmers. “I welcome this opportunity of placing before townspeople the farmers’ viewpoint on the problems confronting this country to-day,” said Mr Sinclair. “Most of the immediate difficulties experienced by the business community are attributable to the dwindling of our sterling funs in London, which amounted to £47,000,000 three years ago, and now stand at approximately £6,000,000. “The present Government is within its rights in attempting to carry out the policy it placed before the electors, subject to modifications during a state of war, but if any body of citizens believes that the implementing of that policy is endangering the economic structure of the country, they have a right to register a protest and to suggest remedies. “The Government’s policy calls for great increases in expenditure, and it is now becoming clear to all sections of the community that this policy is entirely dependent upon a continuous expansion of primary production to provide the sterling funds overseas. On the experience of the past decade the Government was justified in assuming that primary production would continue to expand at its normal rate, and it is unfortunate that the past three years have witnessed a serious decline. This decline is due partly to climatic conditions, and partly due to difficulties experienced by primary producers. Climatic conditions are not responsible for the decrease of 100,000 cows in our dairy herds, or for the disappearance of 4000 dairy farms from our industry. DECREASE IN PRODUCTION. “During the last three years butter production has declined by 30,360 tons, and cheese by 7315 tons, and this had represented a loss of £4,000,000 in our sterling funds in London. Had our industry continued to expand at its normal rate there would have been at least £7,000,000 additional in our sterling funds to-day, and this meeting would not have been necessary. “Here let me say a word to the farmers whom I represent to-day. There is no intention at this meeting of asking for the lifting of the import restrictions. Mr Gainor Jackson will tell you on behalf of the importers and merchants of Auckland city that they realise this would be a calamity at the present juncture; that they know there is only one method by which the import restrictions can be safely lifted—namely, by an increase in the exports of primary produce sufficient to rehabilitate the sterling funds in London. On behalf of the farmers I assure the business people that if they will aim at that objective, the farmers will be behind them to a man —and woman. “ELEMENTARY FACTS.” “If we can bring home to the people in our cities and towns the elementary fact that our imports are paid for by our exports, and that for a long time to come the prosperity of this country must rest upon its export of primary products, we shall achieve something worth while. The people of this country are living in a fool’s paradise if they think we can continue spending at the rate which has prevailed over the last three years. We cannot spend more than we produce; we cannot get something for nothing. Higher wages and shorter hours can be justified only by a large and continuous expansion in produc tion, and the payment to the producer of a price which will give him a reasonable return for his labour commen surate with that enjoyed by other sections of the community rendering equal service. “It is the opinion of the farmers that this position does not obtain in New Zealand to-day, and dairy farmers from one end of New Zealand to the other- feel the bitterest resentment because of the manner in which the Government is evading its responsibilities, and breaking the pledges it gave to the industry in connection with the guaranteed price scheme. Lei me tell you briefly what these pledges were, and how miserably the Government has failed to keep them. MR NASH’S PROMISES. “The guaranteed price scheme was first placed before the industry by Mr Nash at a conference held in Palmers ton North in June, 1935. This is the pledge from the official report: “ ‘Mr Nash said it was impossible for any lengthy period to carry an industry along where the farmers did not recoup their costs of production. That was the point he wanted to bring home to them. He was of opinion that the maintenance of production was dependent upon the upkeep of the farms, and the payment to the farmer and his assistants of a sum sufficient to maintain them at a standard of living measured by the production resources of the country. " ‘The rest of the Dominion was largely dependent on what was produced by the dairy farmer. If there were goods which we required from overseas, then the man who produced in New Zealand was entitled to payment from the community if necessary in order that he could purchase his needs. If the farmer were required to produce all the goods, he should be paid for his skill, knowledge, experience and labour, and the payment should be measured by the same tape as was used to measure the payment to others who rendered equal service.’ “’At question time I asked this question: ‘lf the cost of production exceeds the price realised overseas how will the difference be made good?’ “Mr Nash replied: ‘To my mind, if world parity is below the cost of production, then the people of New Zealand had to adjust the price to see that the farmer got the cost of production.’ “Three months later Mr Nash produced his pamphlet, ‘Guaranteed Prices, How and When,’ and this pledge was again set out. It was incorporated in section 20 of the Prim-

ary .Products Marketing Act, 1936, and it was reiterated by Mr Nash only 13 months ago. The dairy farmer claims the fulfilment of that guarantee. He asks for nothing more, and he cannot be blamed if he says that he will be satisfied with nothing less." FARMERS’ PREFERENCE. After reviewing subsequent events and regulations Mr Sinclair said: “The farmer has only two methods by which he can adjust his position—either his costs must be lowered, or his price must be increased. The farmer infinitely prefers the first method —a reduction in his costs. He knows that there is a deficit in the dairy industry account of approximately £2,000,006, and that this money has been paid to him by the issue of notes from the Reserve Band with not a vestige of production to support the payment. But he knows also that there are many other avenues of expenditure which are not supported by a vestige of production and that a continuation of this policy spells disaster for the country. Sacrifices are needed to-day, and the farmer will shoulder his share willingly, but he refuses to be made a chopping block for the rest of the community. He cannot do the impossible; the production in our Industry is being retarded because many farmers are reducing their herds to a number which can be handled by themselves and their families. “The Government is asking for our co-operation. We point out that cooperation is two-sided, and we ask for the co-operation of the Government. The farmer refuses to be impressed, for instance, by Mr Savage’s messages over the air while he permits his friend Mr Scrimgeour to attack farmers and farmers’ organisations over the air with his poisonous propaganda. The reference to Mr Scrimgeour was greeted by a roar of laughter from the crowd. "On behalf of the farmers I submit the following suggestions as the only method of overcoming the difficulties which confront this country to-day: “(1) A policy based upon recognition by the Government and the people of the cities and towns that the primary industries of this country must first be placed upon a sound basis.

“(2) An immediate reduction in costs of primary production by the curtailment of all non-productive- expenditure, wherever possible. “(3) The payment of a price to the primary producer which will enable him to attract skilled labour to the farms by the payment of competitive rates of wages.”