FARMERS’ UNION

Timaru Herald, Volume CXLIII, Issue 20780, 15 July 1937, Page 7

FARMERS’ UNION

ANNUAL CONFERENCE OF DELEGATES PRESIDENT’S REVIEW OF THE YEAR By Telegr-’.pb—Press Association WELLINGTON, July 14. Tlie Dominion Conference of the New Zealand Farmers Union was opened this morning by the GovernorGeneral. In a-brief reference to immigration Lord Galway said that something would have to be done if the Dominion was to develop and reach real prosperity, and he discussed the possibility of developing waste lands into small holdings where young couples could make a living. He referred to the importance of agricultural and pastoral activities to the Dominion as a whole and several of the problems facing farmers as a national body. Speaking of the value of research work in agriculture, Lord Galway said he was sure that the work being done in connection with the growing of wheat would lead to the discovery of the right type for different districts. He also referred to the proper care and feeding of dogs. If this were attended to and an attempt made to stamp out hydatids It would help to remove what was a great disgrace to New Zealand. He also referred to the need of eliminating noxious weeds. The Minister of Agriculture addressed the gathering and then the president, Mr W. W. Mulholland delivered an address, at the conclusion of which Mr W. J. Polson, M.P., said he was satisfied the case for farmers had never been more clearly stated, and moved a motion of thanks to the president, which was carried. President's Address In his presidential address. Mr Mulholland said said that during the year he had visited all of the twenty three provinces of the Union. His most outstanding impression was the growth of interest in, and the influence of the Fanners' Union. The Government and the public now recognised the Union as the mouthpiece of the farmers.

The year had seen a Labour Government’s policy put into operation in its main essentials. When they had met in conference last year several important acts had been passed and others were foreshadowed. Although this policy was almost opposite to that which had been advocated by the Farmers’ Union, the conference decided to place no obstruction in the way of its being put into operation and to give the Government what assistance the Union could in order to make that policy work in the interest of the Dominion.

The Labour Party were emphatic prior to the election that wages, etc. should not and indeed, could not, be raised apart from the raising of farm prices. Undoubtedly it was in the Labour Party’s mind that the raising of farm prices should precede the raising of wage-, and other farm costs, and in the Budget last year, Mr Nash promised guaranteed prices to the farmers and abolish the present speculative nature of their income. In Implementing their policy, however, the Government proceeded energetically to execute the raising of wages in industry and the imposition of conditions on commerce and industry which materially raised farm costs. When the Primary Products Marketing Bill was Introduced, it was naturally looked upon as the instrument by which th 6 Government intended to give effect to its promises, but an examination of tlust measure showed that it is not designed to raise prices or as an Inflationary neasure at all, but was a purely marketing measure. It was true that it may in some seasons pay out more than it receives for the produce of that season, but the construction of the Act, and Mr Nash’s definite statement of policy, both before the election and in the preamble to the Act, showed that it was not intended that it should do more than this. For a marketing measure this was sound policy, and the measure as drawn was admirably adapted for its purpose, which was the stabilising of the price of farm products over a period of years, but it does not carry out, and was not intended to carry out, the raising of farm prices in accordance with the raising of farm costs. The prevention of the violent fluctuations to which farmers’ markets are subject was an objective which would be viewed sympathetically by every farmer. Fluctuating markets were liable to create situations w’hich no amount of business sagacity could enable farmers to meet without serious loss. If these fluctuations could be successfully “ironed out” it would be regarded by most farmers as a splendid achievement. The Primary Products Marketing Act was very ably devised to make the attempt. In order to stabilise the price it was essential to the scheme that when prices • ere above the level at which stab'lisation was sought the payments should be little above that level and the balance of the proceeds from the sale of the produce retained in the pool to form a stabilisation or equalisation fund. Was it possible to create such a large fund from the surplus receipts in years of high prices? Where could it be held? And what would be the effect of withholding such a large sum from circulation? Undoubtedly, the withholding of this money would have a considerable deflationary effect which as high prices are usually associated with a tendency towards inflation might be advantageous; provided that

the money was held entirely outside New Zealand.

While the control of the scheme remains in the hands of a Minister, however, political pressure would make it impossible to build up an adequate reserve fund, if, indeed it was possible to build up any at all. The guaranteed price would never achieve its object, unless the control was restored to the industry where it rightly belongs.

The Minister for Agriculture had stated that the compensated prices and the Government’s policy were the same. He suggested at the South Island Dairy Conference that that conference had no need to carry the compensated price remit, and was reported to have said: “I want you to compare those provisions of the Marketing Act with the compensated price formula. I submit that, you will find that there Is little need to discuss your remit.”

Lowering the price of manures would be useful and, if the reduction amounted to 10 per cent, it might save the dairyfarmer as much as -Id per lb. on his production costs. The efficient working of the zoning system could contribute something, if the savings were not cancelled out by further increases in transport costs. The Government must not allow the costs of industry, and particularly the farming industries, to be inflated further. The movement had, in fact,

gone much too far already even for the Government’s policy. Whatever method they may have in mind for raising export prices, it must in fact be a devaluation of the New Zealand pound, either openly or covertly, and while it was true that we had complete control of our internal currency, there are very definite limits to the lengths to which that can be carried without causing serious trouble. It could not be carried very far without jeopardising our position on the British market. “We owe the practically unrestricted entry of our produce to Britain to the goodwill of British industrialists, both employers and employees. But they are already a little annoyed by our fixing of the exchange at £125 N.Z. to £lOO sterling. Perhaps unreasonably—for I believe that so far from restricting our purchases from Britain, the effect has been by improving farmers’ income in some degree to enable us to buy more. Nevertheless, that feeling is there. In business it is an axiom that ‘the customer is always right,’ and if we annoy our best customer, we may do ourselves serious harm. If we devalue our New Zealand pound a great deal more, however it may be done, we may cause the industrialists to join forces with the British agriculturists who have all along been desirous of some restrictions on our competition, and then we should be in danger of losing our favourable terms of access to the British market.”

Record Exports A record value of exports for the past season, amounting to more than £60.000,000, prevented inflated costs from being as seriously felt as they would be under more normal conditions. “Nevertheless, under what almost amounts to boom conditions we find unemployment stubbornly persisting. The Minister for Employment proudly points to factories working full time, and then unable to cope with their orders; but why are these factories not putting in new plant or extending their premises, instead of turning orders away? Why is so much New Zealand capital seeking investment in Australian rather than New Zealand industrial concerns?”

Sooner or later a fall in prices was bound to come. It was the high level of wool prices this year more than anything else that enabled us to sustain the high costs resulting from the Government’s policy without serious disturbance of our economic conditions. The Government states emphatically that it believes that, in the face of falling prices, it is wrong to reduce costs. “It would assist the return ot confidence greatly if they would demonstrate clearly how they will meet the position which surely will arise. Have they any practical method of dealing with this situation?” Concluding, Mr Mulholland said:—“l wish to express my appreciation of the help and assistance so loyally given me during my year of office by the officers of our organisation everywhere. First to head office staff, both of those in the office and of those in the field I can say that money could not purchase the loyal and efficient service given to the Union and to me personally. The Dominion Secretary and his staff have indeed have been a tower of strength to me. The members of the Dominion Executive have responded well to the calls I have made on them, ,though I fear at times I have been j rather exacting. Where all have given

such valuable and ungrudging service I feel that I must restrain myself and not mention names, but I cannot refrain from mentioning the help which the immediate past president, Mr Polson, gave to me especially during the time Parliament was in session. I have been greatiy impressed by the work of the provincial officers, our provincial secretaries are mostly quite understanding men whose services are efficient and enthusiastic and not in any way to be measured by their salaries. The provincial presidents are of a fine type and their enthusiasm and energy in carrying out their duties are reflected in the great increase in the prestige of the Union, They are assisted in their work by many keen and loyal workers. One thing which impresses me is the number of young men who are now taking their share in the work. It gives great hope for the future of our organisation.” Minister’s Address A hope that there would be full co-operation between the Government and the farmers was expressed by the Hon. W. Lee Martin. Without that cooperation the Government could not hope to achieve what it desired, namely, economic security and social justice for every person who rendered service to their fellowbeings. He claimed as a financial member of the Union that he had been loyal to Unionism principles from the farmers’ viewpoint. The agricultural and pastoral situation, although not without difficulties, was fairly satisfactory. Farmers must have been gratified by the new quota of meat imports to Britain, and the increases in the number of sheep meant an increase in potential mutton and lamb exports. There was still room for improvement in the quality of chilled beef, and with regard to bacon the question of quality of exports could not be too strongly ■ emphasised. owing to the increasingly tense competition in the British market. The violent fluctuations in the butter market provided an illustration of the value of a guaranteed price. When markets were subject to precipitous price movements, the producer was left in a position of bewildering uncertainty, and the Government said the farmer should not be left to the mercies of such a market. “The whole basis of our plan is economic and social justice, and w’hen you are considering the position of the f aim er under the new legislation, I hope you will look at the complete picture. Questions of mortgage adjustments and interest rates, for example, must also be taken into consideration, before a final verdict can be given bv many of us.” The Minister quoted figures to show with respect to the butter payout that there had been an ample margin over the guarantee. Mr Polson Honoured. By unanimous vote Mr Polson was elected a life member. He retired from the presidency last year after occupying the position for 16 years. Tributes were paid by Mr Mulholland and other speakers. Mr Polson said he was glad to be associated with the distinguished band of life members. The fact that he had been made a life member would not interfere with his interest in farmers’ affairs in any way, and he intended to carry on with the job on behalf of farmers in the future.