THE FARMING INDUSTRY

Wanganui Chronicle, Volume LXXXIII, Issue 19768, 16 February 1927, Page 9

THE FARMING INDUSTRY

HIGH FREEZING COSTS MR. POLSON URGES REDUCTION [ Per Press Association. ] WELLINGTON, Feb. 15. Giving evidence in the freezing dispute at the Arbitration Court yesterday, Mr W. J. Polson, Dominion president of the New Zealand Farmers’ Union, gave a.most interesting and illuminating statement of the position of the* farmers of New Zealand. Referring to the high costs, which, he said, were throttling the industry, Mr Polson said: “I wish to point out that wc arc the only people who cannot pass these charges on, and that with the gradual fall in the prices of primary products, a fall which economists agree is a natural corollary to the return of the gold standard, it is impossible for us to develop the primary industries in this country unless we get the costs of production down.” Witness proceeded to contend that inflated lamb values were not wholly responsible for the unsatisfactory position of the farmer, but the high costs, including labour costs, due to the increased cost of living, the restrictions imposed on the employers by the Court and the slackening of effort during the recognised hours of labour by the workmen generally were the chief causes. Continuing, Mr Polson said: “I have endeavoured to obtain the balancesheets of a number of farmers for the confidential use of this Court, but unfortunately only those farmers with a considerable balance of assets over liabilities can be induced to offer their balance-sheets for scrutiny. The bal-ance-sheets I wish to present, therefore, show a position which is better than the average. I have referred to individuals by numbers, and will be glad to hand the key to the Court if it requires it. It is unfortunate that the great bulk of the producers object to having their embarrassments dragged into the light. Position of Small Farmers. ”1 would further point out to the Court that the small farmers, who largely belong to the organisation I represent, have been in many cases working long hours, depriving themselves of the amenities of civilised life which every worker nowadays regards as part of his birthright, and nothing appears in their balance-sheets to represent this item. The worker receives his wage at regular intervals, but the farmer’s wage depends upon next season’s market, which places him at a double disadvantage. In a period of declining prices, the lag in cost reductions is invariably twelve months and generally two years behind. The small farmer whose land is assessed for land tax at less than £2,000, and who constitutes two-thirds of the farming class, is the worst hit because his labour creates a considerable proportion of the value of his product when compared with his capital. Farmers of this class who do not live with the greatest frugality and practice the greatest economy cannot hope to survive these conditions. Why should these handicaps not be shared by others'? ”If such is the position it is evident that the only chance, not only for the farmer but also for the country, is to increase production and get the costs of production down. Wc say as producers that the responsibility is upon this Court of seeing that the cost of production is reduced. The cost of living is based on the index values, over which the farmer is the only section of the community without any control. “A Vicious Circle.” “The continual interference of the Court in order to maintain the standard, which I contend is a false standard has had the effect of retarding the return to sounder conditions. As an Australian authority recently put it, we are engaged in ‘the futile and endless travelling of a vicious circle.’ I do not wish to reduce the workers’ standard of comfort, but I am satisfied that reduced costs of production would mean reduced cost of living. “I have been able to make some investigations in such countries as Denmark and Holland, where the basis of living is vastly lower than in New Zealand, but where the standard of comfort is undoubtedly as high if not higher. The reason is that production costs are low. “In conclusion I would urge upon the Court its enormous responsibility in this matter. Freezing costs must be reduced. All the small works are runining at a loss, with the result that they are being closed down by a process of exhaustion. These works perform a distinct service to the producer in some cases, and their withdrawal is in those districts a retrograde step. The farmer’s protection against unfair labour demands is smaller works. Freezing companies are in a different position to the farmers. They are in a position to pass their charges on. Similarly they would be in a position to pass on any reduction.”