REASON FOR DECLINE IN PRODUGTION

Chronicle (Levin), 10 April 1947, Page 2

REASON FOR DECLINE IN PRODUGTION

"WHERE IS THE INCENTIVE FOR INCREASED EFFORT?" "The current decline in all forms of primary production is the direct result of the financiai return secured by the farmer in proportion to his costs of production and relative to the high earnings of urban worlcers on an houriy basis, " stated Mr. H. J. McLcavey, chairman of the Manawatu ProvinciaJ Executive of Federated Fariuers, at a meeting of the executive in Palmerston North yesterday. "As all the wealtli comes fronl the land whatever lessens or limits its use deprives people of wealth," he continled. '"The current decline in production is indicativc of a lessening in the use of the land which means, in turn, that New Zealand is getting poorer and poorer. When farmers are underpaid, particualrly in relation to other worlcers wlip have no capi-tal stake in industry, New Zealanders as a whole are deprived of production from the land. Lncentive is reduced and the labour supply becomes limited.

"Today that incentive is lackmg, he stated. '"When practically evcry other 'use of eapital ahd labour pays better thau it does on the land priman production must decline. This is the position today and the disparity in the relative rewards of farmers and urban worlcers is a. primary cause of deereased production. New Zealand lives on grass; but if it pays better to manufacture glass timo grass New Zealanders will prefer glass malcing. And this is rapidly beconiing the position. The minimum wage for work ers unskilled in glass manufacture is £5 1 8s per week of 40 hours, or £8 Qs 6d for 48 hours. As much as £000 has been earned each year by glass worlcers in much shorter hours than those of the dairy farmer. Dairy farmers, with their income fixed under the guaranteed price, would have to double production to compete with glass-makiug if they wislied to receive equal rewards. Wlicre, tlien, is the incentive to greater production?"