F.— 29a.

The Efficiency of Management of Land and Stock. Conclusive evidence as to the standard of efficiency of management of land and stock was not submitted. However, certain evidence indicated that instances of inefficiency in this respect are not infrequent, and that such inefficiency often is due to one or more of the following factors, which may or may not be listed in the order of their importance : — (1) Lack of sufficient or of suitable labour : (2) Financial stringency arising from lack of business judgment or from changes in the relationship between farm costs and farm returns, for which adequate allowance has not been made : (3) ; Occupation of farms which are unsatisfactory economic units because they are either too small or too large : (4) Personal factors. The inefficiency arising from the personal attributes of the occupier of farm land warrants more than mere mention, because there is a tendency to overlook its importance. It may be said safely that, under current New Zealand conditions, a major factor in the success of a sheep-farmer is the sheep-farmer himself. A necessary complementary statement to this is that in the presence of certain restricted conditions in New Zealand, under the present relation between farm costs and farm returns, it is virtually impossible to make sheep-farming a satisfactory economic undertaking. This, however, does not destroy the, validity of the statement that in general the farmer's personal factors —character, ability, training, and background —contribute greatly to his success, and we are in accord with a policy of land settlement that lays special stress on these factors. The evidence submitted showed that among the means to improved sheep-farming efficiency which are not being fully exploited are : — (1) Better feeding of stock as a means to increased yield per unit of production and as a means of decreasing the losses due to stock disorders and parasites : (2) The more general use of seed of good germination and purity and of a high-class strain suited to the purpose in view : (3) Wider application of the results of the fleece-testing work which is in progress : (4) More general application of suitable fertilizers as top-dressing on pastures which are of ;j i a suitable type : (5) More effective use of suitable cattle as means to pasture improvement and pasture maintenance. Because of the markedly incomplete nature of the evidence submitted, the above-mentioned five means to improved efficiency are not to be taken as a complete list of the means whereby improvement in sheep-farming may be effected. Further, it is desired to make it quite clear that application of each or all of the five means mentioned would not in all cases necessarily prove advantageous. The Labour-supply in Sheep-farming. The evidence submitted in regard to the labour supply available in sheep-farming was incomplete in certain important respects. It was, however, sufficient and of such a nature as to lead to the following :conclusions : — (1), Under present conditions sheep-farming suffers to some extent on account of a labour 111 supply inadequate in respect to numbers and in some instances lacking in efficiency : (2) The main and essential cause of the present labour position is that the reward of labour in sheep-farming compares unfavourably with that of labour in other industries which compete with sheep-farming in the labour market: (3) If the present conditions are maintained the current labour position, instead of improving will become worse : (4) The principal permanent and effective means of remedying the present unsatisfactory position are to provide wages for labour engaged in sheep-farming bearing a due relation to those obtaining in other industries which compete with sheep-farming for the labour which is available ; and, as far as possible, to provide permanent work for employees. It may be noted that this position was accepted by witnesses on behalf of the sheep-farming industry who made representations to the Commission : (5) A very important means of improving the position is the provision of suitable houses for married workers on sheep-farms. Two methods by which this result might be achieved are recommended for consideration — ~ , ~. , (i) The making available by the State to farmers, at attractive rates of interest, of funds for building on the farms houses for married farm-workers : (ii) The building and renting by the State to farm-workers of homes constructed in groups in suitably located villages, and/or the easy financing of similar homes to be owned by the workers : ,(@) It has been urged that provision be made for the purpose of fixing from time to time minimum rates of wages for employees in the sheep-farming industry, in cases in which an agreement cannot be reached by the organizations concerned. The Commission, while unable to make a specific and detailed recommendation, recommends that the Government give consideration to this matter : (7) In view of the fact that the evidence disclosed that an increasing shortage of skilled shearers . ki j exists, the Commission recommends that adequate provision be made for ensuring the employment, wherever available, of a sufficient number of learners : (8) In view of the prime importance of an adequate supply of farm labour and the prospective difficulties relative to its provision, the Government is recommended to give consideration to the organization, transfer, and training of the necessary labour.

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