FARMERS' COSTS

Hawke's Bay Herald-Tribune, Issue 80, 21 April 1937, Page 6

FARMERS' COSTS

Points Made in Mr. Blydes' Address « . GUARANTEED PRICE Comment on all manner of tbings farming was forthcoming from Mr H. E. Bljde, president of the North' Taranaki provincial district of the Farmers' Union, when speaking at Hastings last night. There was a good attendance, representative of all branches of primary production, at the meeting, wbich was arranged by tbe Hawke's Bay branch of th© union, and they accorded Mf Bly$>*e ' an excellent hearing. At the conchision of his speech, Mr Blyde dealt withi a number of questions which were raised by various members of the audience, and, •* before the meeting finally closed, he .was accorded a vote of thanks by acclamation. * » • That with reduced costs it would be possible to absorb all the unemployed in the Dominion and niany of those out of work in the Old Country was Mr Blyde' s contention, in advocating a lowering of production costs. • The amount of land that- could b© profitably farmed would be increased it costs were cowered, said Mr Blyde, and this would mean more employinent and increased production. • • • "High wages -do not mean ,a- high standard of living," remarked , Mr Blyde, who pointed out that, with increased costs, farming was made less payable, the volum© of • production fell and "returns from primary production, on which the Dominion depended for its .prosperity, also fell. • # • That New Zealand should concentrate on primary production and trouble less with building up protected secondary industries, which meant increased, costs for the primary produqer, was another view advanced by tbe speaker. It was better, he said, for New Zealand to produce meat, butter and wool, for wbich th© country was most fitted, than to endeavour to compete with the big manufacturing countries which cpuld produce manufactured goods at a much lesser cost. Mr Blyde emphasised that h© was not opposed to secondary 'industries, but he maintained that it wonld be better to lower costs of primary production rather than pay a high price in protecting secondary industries which were not economically justified. • • ,# • The New Zealand producer is the most efficient in the world," said Mr Blyde. If costs of production were reduced, the farmers would have no need for guaranteed. prices." • • • "Who would bear the deficit that would result if the price for our dairy produce fell t© 9d on. thp Hom© market, and the guaranteed price were 1/3?," asked Mr Blyde. "The whole comhiunity. But th© rest of th© community, with th© exception of the exporter, would pass the cost on in increased charges, and the guarantors— largely- th© sheepfarmers — would have t© foot"' the bill." • • • "There is-no over-production ; underconsumption is the trouble," stated Mr Blyde. "By developing .this country and producing more through '* reduced costs, we could purchase more from overseas, and tken, those overseas countries would be in a position to buy more of our produce. Thus we would create a market for oui* produce." #. # # "I don't beiieve wp can alford a compensated price," said JMr Blyde to a questioner. "But jf.we can't be brought up to the level of those whose incomes have been increased, then they must meet this injustic© by reducing costs as We maintain should have been done." * * * "Is it just? Is it right?" asked Mr Blyde. "Industry has a 40-hour week, whil© in Taranaki there are more women and children working in tlie cowsheds, doing up to 80 hours a week. than ever before." # ♦ • # "We Hepend on our exports, not on economic nationalism.," conteuded Mr Blyde. "But if the majority of people in this countrv- think otherwise. tlien

we must endeavour to get justice under that system until thq system is aitered." * # • "The -guaranteed price gave us a guaranteed return," admitted Mr Blyde, "but it did not give Us an adequate retuj-n. We did not get any 1931 level of wages; but an average of-7 to 8 years, including the sluinp years. If costs had been left down, there would have been no need for a guaranteed price." . (Applause.) "But under the present system we are forced to' accept a guaranteed price to keep going." " . .. • #' * # "What sets the scale for farm labourers5 wages?" asked Mr Blyde. "The scale of wages in the Public .Works Departmeut determines what we have to pay to keep our farm workers, even although there is an award • rate fixed. But. labour won't stay if if. can get more on another job." • » • "The difference between a guaranteed price and a compensated price is that the latter goes up automatically with costs, and that's what we want under the present system," said the speaker.