WELLINGTON NEWS

Hokitika Guardian, 4 November 1930, Page 6

WELLINGTON NEWS

FARMERS TO UNITE

(Special Correspondent.)

WELLINGTON, Nov. 3

A (good many people are under the impression that the economic conditions of the Dominion are superior to that of the Commonwealth, and ini conversation .they refer in terms comlii'iisses’a.ting the Australians. New Zealand’s conditions are relatively the same as those of Australia, liecause the same forces are operating here rvs they are across the Tasman Sea. Australia is in a tight corner because all its principal export products have declined in value, while its commitments outside continue, is the same with New Zealand wool, butter, cheese, meat, hides, sheep skins and tallow are all very much down, and these productls are our principal exjports that furnish tbe national dividend and enable us to pay our wav, and not only that, ibut also furnish the fund out of which salaries and wages, rent and interest are paid. Last year a ton of .butter paid tbe interest at 5 per cent on £3400 today it requires just over a ton and a half of butter to ,pay tbe same interest. Butter has gone down but interest on foreign debt remains, But this perhaps would not occasion much distress ‘but when it is remembered that the men who toil and slave to orovide the exports have to accept lower prices, ruinously lower .prices for what they produce and export, and at the same time have to pay the same high costs that have grown up during the post-war years, it will be admitted that too great a strain is being placed on tbe export industries and a break is inevitable. If we could by any means cajole, induce or compel the consumers of our export products to pay higher prices, say 25 or 30 per cent more, than those now current we would he able to go along with some comfort, hut that is just what we cannot do, and so we must turn to the production end and see what can be done. The producer for export is perfectly justified in saying to the rest of the community: “Mv income has contracted and I must therefore ask the rest of you to accept a correspondingly less salary or wages.” But the worker retorts: “You must not attack my standard of living, which is mine by law. If my wages are reduced my standard of living will be reduced.”

The worker stands behind the harrier of politics, the producer lias no protection whatever. Their positions are unequal in an economic sense, that being so it is the duty incumbent on tbe producers to take such steps to escure for themselves a. full measure of economic equality. Politick and economics are very closely mixed both in New Zealand and Australia, and it is difficult to determine where economics and politics begin, or where politics end and economics begin. This much is obvious that thb workers have through the effective use of the political machine entrenched themselves in a position from which it,will be very difficult to dislodge them. If the producer desires to undertake this formidable - task, and selfinterest should compel him to do so, he must enter the political arena and fight with the gloves off. Tiie Executive of the Farmers’ Union appear now to lie seized of the position, and it is safe to say that there will be something doing. Mr Adam Hamilton, ALP., who addressed the members of the Executive, made out a very strong case for the producers as a body and in close co-operation entering the political field.

Here is what Sir Otto Niemoyer told the conference of Premiers at Melbourne on August 21st:—“So long as the sheltered trades insist on taking so large a share of the national dividend—even an increasingly large proportion as the national dividend drops—so tlie difficulties in the unsheltered export trade will only increase. Australia must adjust herself to the world economic situation. As a debtor nation, Australia is interested in tlie world price level, which is falling rabidly and is likely to go on falling, To this situation Australia has by no means adjusted herself, either in primary or secondary production, thereby giving primary competitors an advantage and exposing the secondary industry to fierce competition.” Those remarks of Sir Otto apply with equal force to New Zealand. Our Parliament has done nothing. The Acting Prime (Minister had to admit that the revenue is declining and talked vaguely of a special session early next year. Something must be done, either voluntarily or by force of circumstances.