WELLINGTON NEWS

Hokitika Guardian, 30 August 1930, Page 3

WELLINGTON NEWS

PRIMARY PRODUCTION. (Special Correspondent.) WELLINGTON, August 27. The importance of the primary producer in the economy of New Zealand and Australia, for neither country is self-contained; 'although some peopii delude themselves with the contrary belief. The,? financial stability of Ne\. Zealand more tlian Australia depends upon the primary producer for Avliereas in Australia 70 per- cent of the exports are provided by the primary industries, in New Zealand it amoun's to 90 per cent. It is the credits created abroad by the sale of primary, products which provide the funds on which depends the payment of interest and other Obligations due abroad. It is therefore sound policy to extend tlie utmost consideration and encouragement t<> the primary producer, the men and women who are willing to, undergo the hardships of country life.

The importance of tlie producer wes to some extent referred to 'by Sir Otto Viemeyer in his report on Australia's 'conomic conditions, and his remarks ipply with equal force to the Dominon, for we are, like Australia, a debtor nation and therefore interested u the world price level, ( and this ivervAvhere is falliii* T rapidly and •dr Otto says it' is like'" to continue billing. To this situation Australia has by .no means adjusted itse f. Other •" * regards the situation of irimary or-•se< r ondary producers,, and the sau-ic holds - good with respect to \ew Zealand. - The fall in the price level increas's he burden of debt and places the irimary producers of competing coun?ries in an advantageous position coniiared with Australia and New Zcaand so long as our ■ costs of production are not reduced. On the question M the standard of living, which ip the platform slogan of the Labour 'eaders,- Sir Otto shows conclusively that' this is far too high. “At pre-sent-while the money wagie of thos-” 'mployed- is - almost- double that of 1911 (remarks Sir OOe), tlie nunihei if those who can attain tlie wage is o steadily increasing—nnemploymeid having doubled since- 1924—that Australian workers as a body effectively receive little more than in 1911. The margin of those who have to be carried neutralises in the total the advantages of those fully employed. This process must become more acute unless “an adjustment is made enabling tv larger number to share the total national dividend.

The position in New Zealand is no •lifferent. except-, in ~ degree, and indead of enabling a larger number of workers- to share in the I national livideird' wc are clinging to award vages arid- conditions and are reduce ing-wages' in a round about way by taxation. We cannot effect a remedy ->f unemployment by the dole and-the uistenance slogan. The amount the nation has ! to spend on salaries, and wages''is less' than it was two, yea re , g 0 and is likely to contract-further-and . -hSL.ep.able ? the maximum number 'in, the,(national dividend.- we must -rati'dn out, the wages, and fnrf.hertnore there mnpt be increased production; ■ onthe lower- wage if piosperity is to return;Australian business people must be feeling the pinch; but they are not entitled to sympathy. They have allowed the-Socialists with their catchy slogans'- to rule the country, comforting thefiisejves with the belief that it would be better to allow tlie Socialists to “stew in their own juice, rather than fight them. . The stew m on now and is affecting all sections ,of- the community, and. the stew will continue for some time. (It is a pity, that w© did not invite Sir Otto to visit the Dominion and look into our affairs, for they would stand investigation* Coining back to primary production, in the Bulletin prepared bv the Department qf, Economics, Canterbury Uriiversft-v,- it -said: - “The maintenance of high standards of- living in this country is dependent on the extent to which all sections of the comnm.nity willingly cooperate to organise'.productive activities, along the most efficient lines, and thus effectively meet low prices with ‘ low costs methods of production.- The adoption of uneconomic- methods that are designed to give an artificial protection to inefficient- producers can only result in a reduction of standards of living and the IoL of markets to competitors more favourably situated.” ‘ ■ '