THE ARBITRATION COURT AND FARMERS.

Wairarapa Age, 5 March 1927, Page 5

THE ARBITRATION COURT AND FARMERS.

MR JUSTICE FRAZER’S REVIEW

PRICES AND WAGES. PREDICTION OF BETTER TIMES. In the freezing workers’ award, Mr. Justice Frazer makes extended reference to the position of the farmer. “The primary producers of this Dominion,” he says, “are in the unfortunate position of having to pay approximately 60 per cent, above 1914 prices for their purchases, while they receive a considerably smaller percentage increase over their 1914 export prices. ’ ’ His Honour goes on to argue that farmers will not be affected at all by the new freezing award.

“Meat,” Mr. Justice Frazer observes, “has dropped considerably since 1925, when the index number was 2085, the base period (101X1) being the years 1909-13. The index number for 1926 was 1755. As the index number for 1914 was 1218, the percentage increase for 1925 was 71 per cent., and that for 1926 was 44 per cent, above the 1914 prices. The index number for January, 1927, which is the latest available, shows a recovery to 1849 but as the January returns include an exceptionally large output of lamb, they may be disregarded. The years 1923, 1924 and 1925 were, however, exceptionally good years, the index numbers being 1875, 1868 and 2085 respectively. The year 1926, with an index number of 1755, compares favourably with the average for the years 1917 to 1921, in which the index numbers were respectively 1761, 1777, 1780, 1716 and 1766, and it compares more than favourably with the year 1922, in which the index number was as low as 1522. Wool, which may properly be considered along with meat, dropped from 1101 in 1914 to 848 in 1921 and 939 in 1922, but rose to 2233 for 1925 and 1431 in 1926, and in January, 1927, stood at 1459. Skins, hides and tallow, which stood at 1089 in 1914, 2426 in 1919 1 and 1522 in 1922, averaged 1876 for 1926. The export prices index numbers for meat that I have quoted group beef, mutton and lamb together. SEPARATE EXPORT PRICES.

The Government Statistician has kindly supplied me with the following export price statistics for beef, mutton separately ’ For the Tears 1009-13, the export prices per hundredweight were as follows: Beef, £l2OB- - £1311; lamb, £1907. For January, 1927, the corresponding prices were: Beef, £1169; mutt.n, £2218lamb £3642. As compared with the base period, beef shows a drop, but as the principal exports are mutton and , 2t 2S ’ ess can sequence. Mutton and lamb, on the other hand, show very satisfactory increases. From the point of view of export prices, the position ot tne farmer is less satisfactory than in 1924 and 1925, but considerably better than it was in 1922. I am prepared to concede that the difficulties of the farmers are not now due altogether to inflated land values, but there does not seem to be cause for pessimism in regard to the movement of export prices. All over the world farm prices dropped in 1921’ahd 1922 P rie es of manufactures remained’ High. Since then, farm prices have been alternately high and low, with fairly rapid fluctuations, while the prices of manufactures have shown a steady downward trend. J AN OPTIMISTIC PREDICTION. “All economic history justifies tho prediction that, sooner or later, prices of farm products and prices of manufactures will meet on a common level The present revival of trade in Great Britain will no doubt have a stimulating effect on the prices of our primary products. While I have every sympathy with the farmers in their present position, with -wool, meat and butter all at a comparatively low level of prices, I cannot allow that consideration to influence my judgment in the direction of reducing the standard ’of living of the freezing trades workers below the general level of similar workers My reasons are: (1) That wages must, m the common interest, be kept stable over fairly long periods. Nothing is so unsettling and productive of confusion and industrial turmoil ss rapid fluctuations in wage rates. They cannot fluctuate upwards or downwards as rapidly or as violently as the export prices of primary products, and they are fixed in this country at a level which is not above that which can be paid at the present time; (2) that labour cannot be regarded as a mere commodity, but must, if at all possible, be paid a wage consonant with the reasonable requirements of civilised life; (3) that the present increases that I have thought proper to award will probably not affect the farmer at all.

ONE-SIXTH OF A PENNY. “ T ] lC increase of Is 6d per 100 on the slaughtering r&te amounts to onesixth of a penny per sheep. Assuming that the wage increases to slaughterhouse assistants and other workers, add another sixth of a penny, lhe total increase is one-third of a penny per sheep. The average flock of sheep in 1926 numbered 994. If 400 were slaughtered in a year, which is probably an over-esti-mate, the increased cost would be Ms. I do not think, therefore, that the position of the farmer will be jeopardised by the increases awarded to freezing workers. Further, the Court was not informed that the increase of 2s 6d per 100 in the slaughtering rates conceded by the Auckland companies had been passed on to the farmers. On the other hand, it was informed that the competition of the more successful companies had tended to keep the freezing charges of the other companies down to the same level.

“Before leaving the subject of the position of the farmers, it may be well to observe that in many parts of the world, and particularly "in the United State of America, the farmer has found himself in difficulties more serious than those of the New Zealand farmer. The remedy that can best meet the case is the adoption of more scientific methods of farming and marketing, with co-operation wherever possible. HOSTILE RESOLUTIONS. “I feel impelled, also, to make a brief reference to the numerous resolutions that have (been passed by different bodies of farmers during the pendency of the present proceedings, and

communicated to the Press, calling on the Government to introduce legislation for the repeal of the Industrial Conciliation and Arbitration Act. It is, of course, quite proper and legitimate for interest®! bodies to agitate for the repeal of an Act or the abolition of a Court, but it is unfortunate that thev should have chosen a time when an important case was pending before thia Court to pass the resolutions in question. It may have been only a coincidence, but it is to be regretted that at such a time any concerted action should have taken place, that might have had the appearance of being intended to influence or intimidate the Court.”