PROBLEM FOR DOMINION

Taranaki Daily News, 1 September 1930, Page 3

PROBLEM FOR DOMINION

CHEAPER PRODUCTION URGED. PLEA FOR NATIONAL ECONOMY. A plea for recognition of the fact that a, serious reduction in the national income calls for curtailment of expenditure and a lowering of the costs of production was made by Mr. H. D. Achind, president of the New Zealand Sheepowners’ and Farmers’ Federation, in his ] address at the annual meeting of the federation at Wellington on Wednesday. Ho said the substantial fall in wool values during the past season, as well as the drop in the prices of other farm products on the overseas markets, had proved the economical soundness of the federation’s steadily maintained opposition to statutory fixation of costs of production. "" "From the economic point of view our legislation with respect to wages, work-ing-conditions, and productive costs generally,' including costs of government (which is not the least of our troubles), stands convicted, and a searching examination and, analysis of our position under the altered circumstances is imperative,” Mr. Acland said. “We have reached a time when we have to face facts as they are, and not as we would wish them to be. We can only pa,y wages and costs out of what we get for the product of our labour. Our Government, equally with that of Australia, has, in framing its industrial and general legislation, failed to recognise that it is necessary to take the economic consequences into account when fixing the conditions under which the community must live.” Criticising the unemployment relief proposals, Mr. Acland said any attempt to employ the whole of the adult population on full time at the present level of wages must fail. The reduction in national income experienced this year made such a course impossible without encroaching on reserves of capital or dependence on tmrrowed money for which industry would be liable to pay interest and sinking fund in the future. Mentioning that the current price of lamb was 8 7-8 d per lb, compared with 12)4d in March, 1925, and that money costs were on a level fixed when when wool, was bringing 160 per’ cent, more than recent prices, he urged that in the interests of the Dominion as a whole the time had arrived for reconsideration of the question of costs with a view to bringing them down to a level which would allow a reasonable return. It -was clearly manifest that working conditions and money wages could no more be subject to artificial control than the planets and stars in their courses. Salvation rested with the people themselves, and could only be attained through thrift, hard work and a resolute placing behind us of the luxurious standards which we had only been able to maintain under abnormal world conditions. . Defiation of costs must keep pace with deflation of prices. It was useless for politicians and Ministers of the Crown to tell the country that the standard of living or money wages must not be reduced. Money wages for all classes, including wage-earners, professional men, shopkeepers and public servants, must be reviewed. The claim frequently put forward that every man had the right to demand a job at an arbitrarily fixed rate of wage (and the Arbitration Court took up this attitude) was analogous to-the farmer saying that he was entitled, if the woolbuyer and meat-buyer would not buy his produce, to have the Government' take it at a fixed price. This any honest politician- knew could not be done. The time was rapidly arriving when it would pay many producers to be destitute, as they would at least get some return for their labour, which they did not get. now. Reduction of taxation, the first .requirement for a return to safe and sound conditions, could only be achieved by lowering the cost, of public services. Without doubt, the declared policy of the federation that taxation’ should be based on ability to pay was fast gaining ground in the country. The assertion that men must not be discharged Jrom the public service because this meant increased unemployment amounted to an argument that the farmer must work for nothing and be a. slave in order to maintain all bureaucratic aristocracy in comfort.