INCREASED WAGES

Timaru Herald, Volume CXLVIII, Issue 21735, 17 August 1940, Page 8

INCREASED WAGES

Burden On Farmers Spiral Will Continue "All fanners will be disappointed, discouraged and even distressed at the announcement of a general increase of 5 per cent, on all award rates to offset the increased cost of living,” stated the chairman (Mr A. J. Davey) at a meeting of the executive of the Farmers’ Union yesterday. ‘‘There can be no doubt that from that point of view the increase is justifiable. The fact remains that this is sure to bring about a further rise in the cost of living and so the spiral goes on. This method of attempting to overtake the cost of living by wage increases has already proved its own fallacy, and it will do so again. The method is not sound and will therefore end in disaster. “It is admitted that we. as a Dominion. have been for some time past, and still are, living beyond our means, and this action of the Court simply places us one step further from a sound basis.” said Mr Davey “The cost of living to farmers and others not covered by awards has risen just as it has to those under awards, but no provision is made for them. This increase in costs is but a minor part of the increases that farmers have to bear, as all costs of production have risen substantially and are still rising. Farmers’ Burden “Farmers have stated definitely that they were prepared to bear previous increases without asking any increase in prices for produce if the Government would agree to stabilise costs of production,” said Mr Davey. “This has not been done, and if farmers are to remain on their farms and to produce those goods on which the fate of the Empire depends, it is imperative that they should receive prices sufficient to meet all costs and give a reasonable standard of living and a return commensurate with the service rendered. This will mean that either the New Zealand Government must ask higher prices from the United Kingdom Government, or pay the New Zealand farmer prices higher than it receives from the United Kingdom Government for the produce. “No one will agree that either of these courses is sound, or desirable, but we are as fully in agreement that if the Government of this country is sincere in its appeal to farmers to produce for the winning of the war, then it must show its sincerity by shaking off the shackles of control and demonstrating its freedom to act in the interests of not a section or sections, but of the Dominion and the Empire,” concluded Mr Davey.