GOVERNMENT SHOULD KEEP COSTS DOWN.

Star (Christchurch), Issue 18772, 30 May 1929, Page 10

GOVERNMENT SHOULD KEEP COSTS DOWN.

MR W. J. POLSON SPEAKS OF FARMERS’ NEEDS.

(Special to the “Star.”) MASTERTON, May 29. Speaking at the provincial conference of the Farmers’ Union to-day, the Dominion president, Mr W. J. Poison, said that he found everywhere an amount of enthusiasm for the work of the Farmers’ Union which, in his experience, was extraordinary. It was very gratifying to see farmers throughout New Zealand at last realising the importance of organisation in an age of organisation. Farmers were realising more and more that they were getting solid results from union activities. They knew as well as he did that this country, deriving 95 per cent of its exports from the land, was entirely dependent on the farming industry. Secondary industries could not be developed on any important scale in a country like this until there had first been established a sound and solid foundation of primary industries. They had a new Government, composed very largely of business men. The Government was out to give a square deal to every section of the community, but a great clamour was being raised for increased protection of secondary industries. That must mean increased costs to the primary producers, and they had to make it perfectly clear from one end of New Zealand to the other that they would not tolerate anything of that kind, and that they would not allow any Government to pile up costs on the farmers of the country. The farmers were the only section of the community that could not pass costs on. Great pressure was being brought to bear by the advocates of protection. They should demand that the objective of any Government in this country should be to keep costs down.

There were three ways in which costs were affecting the producers. One serious item was wages costs, brought about to some extent by the work of the Arbitration Court, but very largely due to increased cost of living brought about by a general increase in costs. The second problem with regard to costs probably one that affected farmers more directly than any other, was the tariff. This undoubtedly was increasing farming costs to a very appreciable extent. The third factor was combination of the capital of industry and of commerce. The effect on costs of the operations of huge combinations was commanding attention all over the world. These operations one economist had described as predatory raids. It might look too big a problem for a little country like New Zealand to expect to be able very materially to affect costs, but he did not agree with that view at all. They were by no means helpless. Reviewing the work of the Industrial Conference, Mr Poison said he was of opinion that the Government made a huge blunder in deciding not to hold another conference this year. He referred to the good results of the conference at Home. This agreement was giving Britain industrial peace, and would assist her notably in competing with other nations and getting back to prosperity. In this country a great deal more could be done to bring about similar conditions than had yet been done. If they got a better understanding with Labour, and got the team pulling together, they would get lower costs, or he was very much mistaken. Mr Poison said that the country must suffer if it allowed inefficiency in any important industry. High tariffs were the death of any farming community. With the present tariff, based on the demands of sections of the community, they had inefficiency in many industries in this country at the present time. The Farmers’ Union said that something in the nature of a Tariff Board or a thoroughly well designed Board of Trade was needed to decide just how far protection should go. They were not so mad as to demand the abolition of protection in this country. What was wanted was tapering down, which, without excessive dislocation, would tend to reduce high tariff costs.