Farmers First

Press, Volume LXIII, Issue 19159, 16 November 1927, Page 8

Farmers First

In our discussion yesterday of the Arbitration Act we quoted an impressive summary from the latest Economic Bulletin of the Chamber of Commerce of the extent to -which industry in general is hampered by "the cost-increas-"ing regulations and restrictions im- " posed by Arbitration Court awards " and by public authorities." But the industry of industries in New Zealand is farming, and it is worth pointing out again that if the Court is interfering with primary production the Dominion cannot afford to keep it in existence. We have definite evidence this week that wool is in strong demand, and less definite indications in various directions that our other staple products will also bring satisfactory prices. By comparison with last year and the year before the outlook is in every way encouraging. But that is one of those happy escapes for which, except in maintaining the quality of its exports, the Dominion is in no way responsible. We have next to no control at all over the prices obtained by our produce overseas, so that if production costs rise while prices remain stationary or fall, we encounter very serious trouble. And it has only twice happened since 1920 that our farmers have received good enough prices abroad to maintain their pre-war standard of purchasing power. In other words, it has only twice happened that they have been able to sell on as good terms, relatively to their costs of production, as they enjoyed in 1914. In '2O, '2l, '22, and '23, and again in '26, they were quite unable to obtain good enough prices to maintain their old margin of security, and in spite of the change in the outlook it is not at all certain that they are going to reach safety level this year. In any case there is only one method of maintaining that level which is directly under the Dominion's control. We can lower the cost and raise the volume of production. If, while we are doing so, prices rise, we shall

find ourselves on the high road to prosperity. If they are even maintained at their present level, or very near it, we shall still be in a better position than we enjoy now. But it will be the purest accident if we reach a higher level of prosperity while our costs continue to rise. So far as anyone can see at present export prices will not rise much, if anything, above what will be a comfortable level for the New Zealand farmer when he has overcome his worst troubles at home. They may, of course, since no one really knows, bat they may just as easily fall below

that level, and will take their own course whatever he does or does not do (except keep up his standards of quality). That is to say, the whole aim of State policy ought to be the improvement of that portion of the road to prosperity which is under our own control. If preference to unionists is an obstruction, it should be removed. If the Arbitration Court is a hindrance, it also should go. Whenever any change in the law is under consideration, or any addition to it, the Government cannot go wrong in asking first how the farmer will be affected, and it cannot go right, except by chance, if it fails to ask whether what is proposed will or will not add to the cost or reduce the quality or volume of production of those things, and those alone, on which in the long run we all live —especially wool, and meat, and cheese, and butter.