FARMERS URGED TO REDUCE PRODUCTION COSTS

Wanganui Chronicle, 7 September 1950, Page 4

FARMERS URGED TO REDUCE PRODUCTION COSTS

Criticism Of Move To Secure Higher Dairy Prices From Britain

The attitude of producers’ representatives during the negotiations with Britain for a 7| per cent, increase for the Dominion’s dairy produce and the comments made in certain newspaper editorials and by primary producers when it was announced by Mr. AV. AV. Marshall, chairman of the Dairy Marketing Commission, that the negotiations had failed, was deplored by Dr. R. G. Hampton, former secretary of the National Council Aid to Britain campaign, when he addressed the final meeting of the AVanganui committee yesterday.

Dr. Hampton said that he was ; distressed at the tone of the comments and that certain people considered New Zealand has been wronged by Britain, and that because the Dominion helped Britain during the war it was now up to the Motherland to reciprocate. "However much we do for Britain we will always be in her debt," he said. “She bore the brunt of the attack by the enemy during the last conflict, took a great ha.rffinering from bombs, ’made terrific sacrifices, and never complained. "Had it not been for the British Navy, we would never have got our food through to Britain. Where would our producers have been had it noti been for the Navy? It is ridiculous to talk of Britain being in our debt." Dr. Hampton said that the com-| piete story should be told to the people of New Zealand, not a onesided story as had been related in the past. It had been said that Britain was paying more to European countries for dairy produce than s' ' was to New Zealand. In some cases that was speaking without knowledge. In July, 1949, Denmark was given a 14 per cent, cut when New Zealand was given a seven per cent. rise. That meant a 6d a pound of butterfat loss to the Danish farmers, and the Danish Government then had to help them with subsidies. They were still paid less than production costs. And their actual receipts were falling steadily. “It is quite impossible to claim that Britain is doing more for Denmark, or any other European country, than for New Zealand. We are infinitely better off than other countries, even than Australia. If Australia reduces its exchange rate then the Australian farmer will get far less for his produce than production costs. Canada

,is selling below the cost of producItion," said Dr. Hampton. Tracing the tendency of rising costs. Dr. Hampton said: "Everybody in the world is letting costs get out of hand. The New Zealand Government abolished £12.000,000 in subsidies this year, but for the people in the country to turn round and say that because their costs have gone up by that amount, then the British people should pay for them by paying more for our produce, , is a lot of rot. Loading our H2.000,000 on to Britain would be most un- ’ fair.” If Britain were not paying a . consumer subsidy, New Zealand butter would sell in the Old Country at about 2s 10.1 a pound. Had New Zealand been granted a 7 J cent, increase the additional price would have been paid by the BritI ish consumer and butter would | have disappeared from really i needy people’s tables. ' Reviewing the defence situation, the speaker said that Britain was to spend £3,400,000,000 more for defence this year. "Part of that will be spent in New’ Zealand's* interest in the Pacific. How then can we reasonably ask for more for our dairy products?" Dr. Hampton claimed that if farmers had a reasonable living then they should accept that without asking for more. If prices were allowed to go up there would come a time when the market would disappear and the primary producers’ means of living would go. “The dairy farmer will have to face up to that fact and produce more at a cheaper cost.” Referring to the Aid-to-Britain campaign, he said that there was something wrong when this country could have committees set up to aid Britain in her time of need and then turn round and abuse her. “We are miles in Britain's debt and instead of killing our own goose we should be satisfied to start looking about for ways of reducing our production costs," he concluded.