FARMERS’ PROBLEMS

Wanganui Chronicle, Volume 80, Issue 121, 25 May 1938, Page 8

FARMERS’ PROBLEMS

GOVERNMENT’S POLICY SPEECH BY PRIME MINISTER SURPLUS IN DAIRY ACCOUNI "MUST BE A PAY-OUT” ( Per Press Association. 1 WELLINGTON, May 24. Addressing the annual interprovincial conference of the central and southern portion of the North Island Farmers' Unions, the Prime Minister Right Hon. M. J. Savage, reviewed the farming operations ot last season There had been, he said, one unfavourable factor which was the fall in the value of the wool cheque from the record level of the previous season, but apart from wool, the principal farm products exported had increased appreciably in value, and indications for the remainder of the export year were equally favourable. For the year ended March last the butter exports, for example, had increased by 2 per cent, in quantity while the total value had increased by just on 13 per cent., the increase being 64.000 cwt. and the increased value £2,060,000. The export of cheese had decreased in quantity by over 4 per cent., but the value had increased by 6-> per cent., the decrease being 74,000 cwt., but the increased value £361,000. Frozen lamb showed an increase ia quantity and value of 6 per cent, end 11 per cent, respectively, the increase being 156,000 cwt. and the increase in value £950,000. The frozen mutton export had increased 10 per cent, and the valeu 14 per rent., the in-.:ease being 67,000 cwt. and £224,0M respectively. Guaranteed Price. There was a conference remit -uggesting an independent tribunal to deal with the guaranteed price, said Mr. Savage. The idea certainly ■ ommended itself to him. For one thing li would save the Government a great deal of worry. “I suggest that, »f you are satisfied about the remit, you see the Ministers concerned before you leave Wellington.” In addition to the guarantee of 112 s a hundred-weight tor butter, dairy farmers had been fold by the Minister of Marketing. Hon. W. Nash, that whatever surplus there was belonged to them, anu it was now only a question of hew tnv surplus was to be made available. Mr. Nash had stated that distribution of the surplus would be announced al tne conference of dairymen in Kvpier The surplus was now about £SCL‘.OOU and probably would be more by the end of the season. The result of the firs* year >f the guaranteed price, a deficit of £3‘KJ.UtjO, meant an equivalent increase in the icceipts of the dairy farmer. He hal beard a lot of talk about a compcisat >ry price, hut the guaran-CL-'l price system could not be satisfactory unless it took account of everything in the way of production costs. If dairy farmers were satisfied with a price tribunal representative of them and the Government and presided over by a Supreme Court Judge that would satisfy him. CostA To The Farmer. Much criticism was being levelled on the score of costs. Obviously the farmer must be able to obtain a return sufficient to cover costs and assure him of a decent living. The Government was anxious to keep costs at a reasonable level. “I want to see you get the best deal possible, because, unless you are going on. our exports can’t go on.” Before the election he had told farmers that they were entitled to an equitable share of New Zealand’s total production. The guarantee-1 price was put forward to that end. It had never entered the Government’s mind that the Government would not consider costs, because they must be part of the problem. Unless all phase.of the farmers problems were faced up to. his difficulties would not be solved. The figures showed that farmers were better off than two or three years ago He recalled the tim*» when production was doubled in 10 years, but there was no increase in the farmer’s income. That could not happen under the guaranteed system. It might be argued that, costs had gone up. but that applied to every section of the community’. Desire To Solve Problems. A request was made that they gel the same deal as a man got in the Arbitration Court and he, Mr. Savage, was willing to give the farmers the same deal as a man got in the Arbitration Court. He did not want te pacify the farmers temporarily, but he wanted to get a solution of their problems, and if that were done they would get a long way to solving the problems of the community. Ik hoped that the dairy account surpluwould be more than £500.000. •‘There must be a payout. You can take that as definite. It belongs to you, and you are going to get it. although it is not an easy matter to suggest a plan by which it can be distributed.” Referring to the Government’s de sire to keep costs down, he said that they must not lose sight of the fact that one man’s costs were another man's income. Cutting wages hat: been tried and they knew the result but at the same time they’ must no! spill money. However, wage cutting was not the best way of increasing incomes. Mr. Savage refererd to the setback' experienced by farmers recently through drought, facial eczema, an the Hawke’s Bay floods. The Government had given assistance. In the Hawke’s Bay floods the farmers were helped by’ way of a loan and direct assistance, and some had been paid to work on their own farms, clearing up and bringing the properties intc production. The Government thought it better to help the farmer whe knew his business rather than put somebody on the farm who knew nothing about farming. Facial eczema was also receiving the earnest attention of the Government and all steps were being taken, and further necessary steps would be taken to combat the scourge. Proposed Tribunal. In a subsequent discussion it was pointed out that, despite the Prime