“GAP TOO GREAT”

Taranaki Daily News, 21 October 1933, Page 4 (Supplement)

“GAP TOO GREAT”

farmer and consumer RETURNS TO THE PRODUCER. EXAMPLE IN WELLINGTON MILK. The gap between the price received by the primary producer for his produce and that paid by the consumer for foodstuffs was considered to be altogether too great by the Hon. A. D. McLeod (Govt., Wairarapa), when speaking during the debate on the World Economic and Monetary Conference in the House of Representatives on Friday. In support of his contention Mr. McLeod cited the Wellington municipal milk supply, and pointed out that the consumer paid for his milk three times the price received by the producer on the farm. “The whole world appears to .be centring on how best to raise the prices of farm products, and particularly wholesale prices,” said Mr. McLeod. The reason for this was that the people were convinced that there was a grave danger of the whole world’s standards being reduced to the standard of the farm primary producer, who was undoubtedly reaching the point of serfdom in many parts of the world. Undoubtedly the difficulty in this Dominion would be to prevent him reaching that point.

EFFORTS OF GOVERNMENT.

Mr. McLeod said he was quite sure the effort made by the Government of the day was to improve in the first place the position -of the primary producers, and through them to alleviate the position of others who must be affected by the situation of the primary producers. The gap between the price paid to the producer and that paid by the consumer for foodstuffs, leaving out all other commodities, vzas altogether top great. , “We have,” he added, “what is probably a very good illustration right at our door. It is provided by the municipal milk supply in Wellington. That supply is handled by the people, not by a monopoly, not for private gain .or supposedly not for private gain. Yet the consumer is paying three times as much as the producer is getting for his milk as it leaves the farm. I think I am correct in stating that is roughly the position. We- call it a municipallyhandled concern, but there is that gap. Unless the all-round position of the producer can be brought to a relatively better level, then undoubtedly the farming industry will get into an exceedingly difficult and bad state, which will be reflected in every other section of the community.” Reference was made by Mr. -McLeod to the suggestion of Labofir members that steps should be taken to bring about a shortening of hours. “How are we to shorten hours in the primary industries?” asked Mr, McLeod, “How is it possible where the worker has to combat nature? Cows demand milking seven days a Mr. H. T. Armstrong (Lab., Christchurch East): Take more holidays. PRACTICAL VIEWPOINT.

Mr. McLeod: I am speaking from a practical point of view. A Labour member: Give the cow a holiday. Mr. McLeod: The cow perhaps might be better than some honourable gentlemen; it would soon go dry if it were given a holiday. These are the problems we are up against from the practical side. He went on to say that leaving exports out of consideration there was no question that less than one-third of the farm lands of New Zealand would produce all the food and clothing that this country required for its. present population. He did not think it would be seriously disputed that they would require a population of at least 20,000,000 to absorb the whole of their wool production. New Zealand’s internal population could not possibly consume much more than one-third of their production in butter, meat, fruit, and several other exportable lines. The consumption of meat and butter in this country had gone up despite the prevailing depression and the unemployment difficulties that existed. He was well aware of the effects of the unemployment, but a careful investigation went to show that it had not affected the consuming power of the people. Mr. W. E. Parry (Lab., Auckland Central): What are the figures? MORE BUTTER CONSUMED. Mr. McLeod said he was basing his statement on an opinion expressed by the head of the Agricultural Department, who declared that as far as he could see the . local consumption of butter had increased by 21b per head per year. The same position, seemed to obtain insofar as the consumption of meat was concerned. No doubt the increase in ’ tire consumption of these two commodities was due to the fact that they represented the cheapest form of foodstuffs available. If the people were consuming more now than during prosperous times then he failed to see the logic of the Labour Party’s argument that a return to prosperity was going to largely increase the consuming power of the people. . Mr. Parry: You would not argue that the people could hot eat more ! Mr. McLeod:.From the general viewpoint I do not. ■-think that if we were to return to. prosperity we would experience any material increase in local consumption.