PRICES AND COSTS

Waipa Post, Volume 41, Issue 3220, 1 November 1930, Page 2

PRICES AND COSTS

POSITION OF FARMERS.

CAMPAIGN TO BE PLANNED,

"We have got to have a reduction of all costs, including wages and salaries," said Mr W. J. Poison, M.P., at a meeting of the executive of the New Zealand Farmers' Union, of which he is president, when a remit was submitted on the subject from the West Coast. The remit was: "That the Dominion executive again urges the Government not to increase public service salaries or staffs during the slump period." Mr Poison said that he did not want the reduction to apply only to the public service. Everyone must share in the sacrifice, whether a business man or worker. It could only be done by special legislation carefully thought out and devised. "There is no suggestion that this Government can do anything of the kind," he continued. "It is a minority Government and it is not game to make the suggestion that a single unemployed man should get less than 114 s a day. How can you expect any result from a motion of this kind attacking the civil servants? I don't think it is a fair thing to attack the civil servants.

"We should deal with the whole thing comprehensively—the whole question of salaries, wages, profits, and everything else, so that the sacrifice will be more equally borne. This afternoon we are going to suggest to the executive that the time has arrived when the farming- community must pull together irrespective of political parties. We feel that the situation ahead for the primary producers is very serious, and we must devise some plan to get results which we are not getting at present. The question of costs and wages will be part of the discussion,"

FURTHER TROUBLE FEARED. When the executive resumed in the afternoon, Mr Poison urged that there was no equality of opportunity for the primary producer in New Zealand just now. The fall in prices was affecting the whole world, and was not peculiar to New Zealand. Efforts were being made to maintain a standard in the world to-day equal to or better than the standard before the war. The result was that falling values were creating" unrest everywhere. The farmers were not out to attack other sections of the community at all, but to endeavour to find the root of the trouble and the remedy which would create the least difficulty and discord. They were in the position of having unprotected exports, having to take world's prices, and as a result of increased tariffs they as primary producers were suffering more than in the past. He was sure that there would be serious trouble for all sections of the community if things did not alter. Mr Poison added that he could not say what would be their position in 18 months unless they could protect themselves and formulate some scheme for the partial alleviation of their difficulties. The question was what to do, and that could not be settled in five minutes. The farmers could do nothing at all unless they showed a united front. They must stand shoulder to shoulder, irrespective of any other consideration, to get a square deal for the primary producers. That was their only hope if they were going to maintain their position. FARMERS SEEK DUE REWARD.

Mr A. Hamilton, M.P. for Wallace, said the farmers of New Zealand were looking to the Farmers' Union for a lead and to see that their interests were looked after so that they received due reward for their labours. They must be able to state a case which would be convincing to the community. There was something seriously wrong to-day, seriously and adversely affecting the farmer. America had prepared farming statistics of production and revenue, and a similar return should be made in New Zealand.

The speaker produced a graph showing the rise and fall of farming export prices from 1914 to the present time, and said that in 1917 they had increased 50 per cent. The commandeer then came in, and prices slumped to 15 per cent. They then rose and in 1925 farmers received the highest prices they ever received. The year 1928 was fairly good, but prices had since fallen rapidly. The farmers had the best of it in the war period, but costs began to get higher. The cost of living rose to over 80 per cent above the 1914 level, and while it had fallen considerably it had maintained

a higher level than the farmers' export prices. Similar figures regarding the position in*America were given, and it was pointed out that the farmers there serout to secure equality for agriculture by either reducing the costs or increasing the prices for their produce. In Canada a tariff had been put on to keep out New Zealand butter. British figures were quoted showing that returns of prices and cost of production were in closer ratio than here.

The land boom in New'Zealand was brought about by the big increase in prices received by the farmers in 1921, continued Mr Hamilton. If the Government had said to the farmers that they would receive 25 per cent increase and had applied the remainder to paying off the war debts, New Zealand would have paid the war debts as she went along, and would have been much better off now. Wages were only a little higher than the cost of living to-day, and the cost of living was not falling very much. Farming costs were 60 per cent higher to-day, and farmers were selling at 15 per cent higher. The problem was to bring tho££ figures closer together, for the indications were that prices would drop further yet. There was no doubt that the farmers were suffering from a grave injustice, and increased production was not such an important factor as might be supposed. A member of the executive suggested the abolition of the Arbitration Court, which he said would bring about an improvement.

Mr Hamilton said that might be discussed, but it was a question whether it was politic to do so. It did not pay to farm third class land, and it would not pay to farm second c'ass land if land values continued to fall. Farmers would have to make themselves felt as a power in the land if they were going to do any good. They had the majority of votes in New Zealand to-day, and had some support in the cities, but they had to organise themselves and see that their power was made effective. If they did not do so they would continue to suffer. At this stage the chairman moved that the discussion be continued in committee, and this was agreed to.

After a discussion of over two hours a committee was set up to prepare a plan of campaign.