Pursuing Back To Front Economics

Chronicle (Levin), 12 May 1949, Page 8

Pursuing Back To Front Economics

— r-ra A suggestion that the Arbitrationi Court is fixing the gnaranteed price for lArmers^ was made by Mr. H. J. McJLeavey, provincial president, at yesterday's annual cbnference of the Manawatn provincial executive of Federabea Farmers. "Most thinking people in New Zealand view with apprehension the faet that while we are reeeiving an all time peak price for our produce, we have to pay out more to the dairy farmer tlian we are receivinf from • the sale of our butter, " he said. _''The stabilisation funds whieh we have been assured were to be used to eushion ar -fall in price, have now to be used at a time of peak prices to bolster up NeW Zealand 7s eeonomy. The Dairy Produets Marketing Commission stated that this step was made necessary be.cause of the aetion of the Arbitration Court in agreeing to a general rise in jvages. The rise in wages may or may not have been necessary. The plain aua unpalatable truth is, however, that tne policy whieh we have pursued in New Zeajand has made it necessary for us to raise our expenditure to a point outside our reeeipts. The faet that we have so arranged things in New Zealand that we have to pay out more for our produce than we are getting for it, seems to be a very doubtful sort of policy to pursue. "What will be the position' when we do experience a fall in price? I suggest that the fnture prospects eannot be regarded with any degree of equanimity by any person in New Zealand who is capable of thinking. At the present time we have money enough in circuiation — some people consider that we have too much. "It seems to me that we are pursuing a back-to-front arraugement," lie said. "What should happen is that the Arbitration Court should make ite decisiowe following upon decisions ta regard to the prices for primary produce. The position, however, is exactly reversed and we find that the Dairy Produets Marketing Commission makes its decision following upon the decision of the Arbitration Court. This means, in effect, that the Arbitration Court is virtually fixing the guaranteed price. Bo long as we know this, and are oontent to act in this way as people, then we cannot have very much cosmplaisijt if o things go wrong, hut I doubt very much if many people are aware of the position. . I doubt very much whether the great hulk of the people in New IZealand trouble their heads about these major economic questioais."