WELLINGTON NEWS

Hokitika Guardian, 20 April 1927, Page 1

WELLINGTON NEWS

PRODUCE MORE. (Special to “ Guardian.”) WELLINGTON, April 18. A memorandum of some importance has been issued hy the New Zealand Farmers’ Union, in which a survey is made of the present economic position of the country, and there is a plea for a national effort to restore the national progress. To accomplish this it is urged that there should he concentration upon a higher level of production, and to meet the market at all times, that is to sell at the market price of the day and not to speculate in produce. It is pointed out that between 1913 and 191-1, New Zealand increased her production, apparently ol primary products by 121 per cent, Argentine hy 109 per cent., Australia by 100 per cent and Denmark by 93 per cent, and it cannot he said that New Zealand has done hadlv. Still it is obvious that wo can do more, hut when we look round for ways and means foi accomplishing this we are brought up against the Arbitration Court, with its legal system of fixing wages regardless of the i'licet on the economic conditions. In 1920 the primary industries had to manage on C 10.090.000 less than in 192."), hut their costs of living and costs of production remain the same, and in some items of cost, there have been increases. As one farmer was heard to remark: “Flow can a cockle increase production when he is up against the Arbitration Court all the time.” Eetterment of farms and better farming with the view of increasing production necessarily involves cmplnvment. of labour, and with the high cost of labour the average farmer has a hard problem to solve and lie is receiving no assistance to solve the problem. The farmer is faced with falling prices, and in addition lie gets all the backwash of rising wages, and the high prices of sheltered industries. If the farmer could lorce up the prices for his produce, or pass on the costs to the foreign consumer his position would not he unsatisfactory, hut he is unable to do this and must therefore look within the Dominion for a reduction of costs, so that at the current prices for produce he may look for a reason; lble profit. But there is a steady resistance to his efforts to bring down costs, and it is adding insult to injury to counsel him to increase his production. ’I ho Executive of the-Associated Chambers of Commerce in dealing with the present economic conditions and the remedy for the prevailing depression suggest three main courses open to rectiiy the present unsatisfactory conditions. One is to got higher prices for our produce which can he ruled out as impossible; the second is to produce and export more, so that the value ol our total sales outside the Dominion increases, and the third course is to import less goods, and in consume less. The imports are falling rapidly, and for the first two months of this year there was a shrinkage of over t!! .300.000. Ultimately we mast rely upon increasing production and increasing the vol-

ume of our exports, but before this can he achieved many maladjustments must bo properly readjusted and theeconomic balance restored. The cost of production must lie reduced, and wages must; be based on output and not on sentimental grounds. In cfioel tin- Arbitration Court, with its rule-ot-thumb and uneconomic methods of wage-fixing must have its powers curtailed, or new rules set lor its guidance. Preference to unionists must go U ifie board. Then there are the questions of State and municipal debts and taxation. Itiriher borrowing, Government and. municipal expenditure and the general extravagance, although the political aspeyt must, be considered with and in relation to other problems. The Chamber of Commerce pronouncement concludes: “In a nutshell the whole community, in some ways, have been having a little too good a time because ol the general disregard of hard, economic facts. Tn our judgment none of these maladjustments should cause alarm: but they ~,H for thought, and careful logical and concerted action is nceossnrv to enable us to regain the equilibrium whose restoration is essential to our Dominion welfare.” This of course is all very correct and very desirable but publicity of this character wants to be translated into action, which means Hint somebody must take tbe load. It is safe to say that nothing will ho done, but when the conditions become desperate there will be a concerted move on the part of the people to force the authorities into considering the position. Tt seems that action must come From below for it will never come from the politicians or the business people. But tbe conditions are not bad enough yet for any concerted movement.