FARMERS AND MANUFACTURERS

Wanganui Chronicle, Volume 80, Issue 242, 13 October 1938, Page 7

FARMERS AND MANUFACTURERS

SEEK CONFERENCE WITH GOVERNMENT

CONCERNED AT TREND TO LOWER PRICES WHILE HIGH COSTS OBTAIN

Some six months ago representatives of the New Zealand Manufacturers’ Federation and the New Zealand Farmers’ Union met to discuss.natters of vital interest to both >odies. Several meetings were held, nd the question of join co-operation .as discussed by the annual conferaces of both the Federation and the 'armers’ Unioi.. It was felt by mem-

ers of both organisations that there .as a mistaken idea prevalent that ioth primary and secondary industries .ere jn a very favourable economic ondition, and it was decided that tatements should be published in order that the people of New Zealand should be made aware of the true position. It was agreed that these statements should be presented to the Government before publication in order that any comments which the Government might care to make could be published along with them. The first statement was presented to the Government some weeks ago, and it is herewith released for publication together with Ministerial correspondence in regard to it. The Position Stated. The present position and the trends apparent therein are causing grave concern to the producers of the country. The New Zealand Farmers’ Union and the New Zealand Manufacturers’ Federation accordingly feel impelled to join in setting out facts which they consider should, in the interests of the Dominion, be fully disclosed. It has been manifest to both organisations that economic conditions in New Zealand are encouraging a state of affairs which must react to the detriment oL the whole country, and both bodies consider it imperative that attention should be directed to the consequences which must ensue should present trends continue. In our opinion, the result of these present conditions ruling in New Zealand must be a definite decrease in national production. Costs to-day are at the highest level they have ever reached in the history of the Dominion, and, moreover, they show no tendency to fall, but, if anything, appear to be continuing their upward trend. On the other hand, overseas prices have been steadily receding during the past year, and, as evidence of this, we furnish the wholesale prices index number published by the British Board of Trade which shows a steady drop from 111.5 in July last year to 100.7 in June of this year.

Drop in Overseas Prices. This drop in overseas prices is transmitted to New Zealand in two ways. We must expect lower prices in the sale of our primary produce overseas, with the result that land on the margin of cultivation in New Zealand is forced out of production; secondly, the lower priced imports drive the New Zealand manufactured goods off our local Dominion market, i This has already occurred. The net result is, therefore, a decrease in production, both farming and manufacturing. The drop in manufacturing production is already manifest and it appears certain that the drop in primary production will follow. Possibly the 6i per cent, reduction in the dairy industry is evidence of this. There are, therefore, two influences which will effect a fall in our national income. The first is through a shrinkage in the price we receive for our exports and the second is the shrinkage both farming and factory production to which we have already referred. Decreasing Costs Needed. Unless falling prices are matched by decreased costs the greatest difficulties result. In New Zealand to-day, decreased prices are being accompanied by rising costs and there can be only one result—a fall in the real national income at a time when the State is making heavier calls on it by way of taxation than ever before in the history of the Dominion. The Hon. P. Fraser’s Reply. The Hon. P. Fraser replied: “With reference to the statement handed to me by you and a representative of the New Zealand Farmers’ Union, I regret to advise you that as the Rt. Hon. the f Prime Minister and the Minister of Industries and Commerce are at pre- ! sent out of Wellington, and as it is at present necessary to devote so much time to the International situation, it has been impossible for me to reply earlier to your representations. “I wish to assure you that the importance of the matter you have raised is recognised, and I suggest that the best method of dealing with the question is for a conference with the Minister concerned. At the moment it may be difficult to arrange this, but if you will get into touch with the Hon. the Minister of Industries and Commerce later on he will be glad to arrange a conference as soon as possible.” September 30, 1938. Letter to Minister of Industries and Commerce. The following letter, dated October 1, was thereupon addressed to the Minister of Industries and Comirerce: “Following on the reply sent by the Hon. Mr. Fraser to the joint statement on behalf of the New Zealand Farmers’ Union and the New Zealand Manufacturers’ Federation, I am communicating with you in order to ask

whether or not it is possible for you to arrange a conference as suggested.

“In order that our statement will not be held to have a party political significance we would suggest that such conference be held not later than Thursday of this week. You will realise that some of our members are impatient of our delay in publishing the memorandum for they feel that it is essential that the public should be made aware of the difficulties under which our industries are labouring. “I will be glad to have your early advice with regard to this matter.” The Minister’s Reply. The Hon. the Minister of Industries and Commerce, under date October 3, 1938, answered as follows: “I have to acknowledge receipt of your letter of the Ist inst. in reference to the proposed conference which has been suggested following the submission of a statement regarding costs by the N.Z. Farmers’ Union and the N.Z. Manufacturers’ Federation. “I have noted your suggestion that the conference might take place not later than Thursday of this week, but I regret exceedingly as a number of the Ministers are at present out of Wellington, and as I personally shall be out of town all this week, it is not possible to arrange the conference just at present. As pointed out by the Hon. Mr. Fraser in his letter the importance of the matter is fully recognised, and I can assure you that every effort will be made to arrange the conference at the earliest possible moment.”