PROBLEM NOT NEW

Gisborne Herald, Volume LXVI, Issue 20091, 10 November 1939, Page 4

PROBLEM NOT NEW

FARMERS’ HIGH COSTS CHANGE IN ECONOMY MR. SAVAGE’S VIEW (.Special lo the Herald.) WELLINGTON, this day. “There is nothing the farmer can say about high costs that could not be said about other sections of the community. So far as the farmers are concerned, they now have more stability than ever.”

This was one of the points made by the Prime Minister, the Rt. Hon. M. J. Savage, commenting on a letter he had received from the president of the Farmers’ Union, Mr. W. W. Mulholland, declaring that production is threatened by high costs and insufficient labour.

“We have been at this problem for months. It is no new thing,” continued Mr. Savage. “Anyone who has to face exchange control with its possible results must have had their minds on making a transformation in New Zealand and of shifting men from public works into industry where they would be producing goods now coming from overseas. Unfortunately, some people think the transformation cafi be made over the week-end, but those with knowledge of the subject know better. “New Zealand has been in the selfgoverning stage since 1856. The process of building has been carried on all the time. .Now we are asked to change the whole face of things over the week-end. It cannot be done, though we are doing it as rapidly as we can.

Exchange Control

“I would like those complaining of exchange control to think of the benefits from the millions which were accumulated overseas that were all brought back in goods passed over the counter by business people, but that is not nearly enough,” continued the Prime Minister. “We have to gel a better balance in our internal affairs. Wc are anxious to see farming extended, but it must be realised there are other sections of the community who need some consideration. If the farmers get more than their fair share of New Zealand’s income, other people will get less. “Curiously enough Wednesday’s newspapers contained information about the great demand i'or small farms in the Waikaio at favourable prices to sellers. This appears in the same issue as the warning of the Opposition Leader, the Hon. Adam Hamilton, regarding the future, but the facts do not look like fear for the future.

“If private enterprise cannot provide the production that is necessary for us to carry out our promise to Britain,” concluded Mr. Savage, "the Government will have seriously to consider other methods of doing the job.”