PRESENT PRICES NOT GOING ON FOR EVER

Chronicle (Levin), 23 June 1949, Page 5

PRESENT PRICES NOT GOING ON FOR EVER

WELLINGTON, June 22. "I think everyone will agree that we should be prepared for something of a recession," said Mr. S. D. Reeves, in his address to the annual conference of the meat and wool section of Federated Farmers today, when eommenting that New Zealand spent about £200,000,000 from taxation and loans in the past year. That was a big enongh hurdle for the Dominion to get over even at the present level of prices but nobody expeeted present prices to keep on forever, he said. "Today the meat pool and meat stabilisation aecounts stand at the very high figure of £29,000,000 and so witn this very substantial snm to help soften the effect of a recession in prices on the producer and through him on New Zealand 's eeonomy as a whole, we should have eause for some feeling of security but there is 'a nigger in the wood pile.' Internal costs are being forced up to such an extent that in some cases we are having to use those funds now. Under stabilisation we get increased prices to cover increased costs and if costs are increased, the farmer, thougn he is paid higher prices, is really only the medium for the distributing of the pool monevs to the community as a whole. If the present trend of increased costs eontinues, the amount left to help in a recession will not be nearly as good as it looks at present. This is a matter in which everybody in New Zealand has a vital interest, " eoncluded Mr. Reeves.