ECONOMIC JUSTICE

Wairarapa Times-Age, 10 May 1938, Page 3

ECONOMIC JUSTICE

DEMANDED FOR FARMERS THE GUARANTEED DAIRY PRICE. MR HAMILTON RIDICULES LABOUR CLAIMS. A frontal attack was made by the Leader- of the National Party (the Hon. A. Hamilton) on the Prime Minister’s recent statement that: —“The Labour Government has given security and stability to the farmers by introducing guaranteed prices. It means a more substantial income to them.” “This statement,” said Mr Hamilton, “shows the Prime Minister to be absolutely ignorant of the dairying industry. Such a statement sounds very well, and that is what it was meant for, but it is absolutely incorrect. The guaranteed price brought neither security nor stability to the dairying industry, and the guaranteed price does not mean a more substantial income to the dairy farmer. “The Prime Minister says the farmers of New Zealand are in a better position today than they have ever' been previously in the history of the country. It is obvious that Mr Savage has not spent much time in the country districts during the last 21 years. The farmers have been hoodwinked and hamstrung by this Government, and they do not hesitate to say so.

“The dairy farmers have their socalled guaranteed price. The' price fixed for a whole season in advance, but has any attempt been made to fix costs? The farmers know the answer to that. They know that, since 1935, their costs of production have risen cut of all recognition, and they know, *oo, that whereas good prices have been made possible only by market conditions overseas, increased costs haye been brought about as a direct result of the Government’s policy. The farmer cannot hope to pay competitive rates in wages, and he is in a less hopeful position today than he was in three years ago, when rising markets, with much lower costs, were permitting him to make a speedy recovery.” Mr Hamilton said that farmers supplying cheese factories last season got £12,000 less than the Government got for their produce in London. Farmers supplying butter factories got an extra farthing per lb. over London prices. This was nothing like enough to meet added costs. It was not for the Prime Minister .to say that the guaranteed price meant a more substantial income.

In the present season farmers were receiving substantially less than the market price of their butter. A reasonable estimate of the- market price above the guaranteed price would be about IJd per lb. butterfat, or an estimated surplus for this year of over £1,850,000, for butter exported. “That,” said Mr Hamilton, “is what the Prime Minister calls security and stability. Note that he did not use the word ‘justice’ as applied to the guaranteed price. Note, also, that the dairy farmers have no legal claim to the surplus. They are in the hands of the Minister, and at his mercy. What a position to be in! No doubt, as this is election year, the Government will make a further payment later on, but the farmers have no legal claim to a penny of it.” On the local market Mr Hamilton stated, butter was being sold at a loss to dairy farmers of about lid per lb. This meant, over the whole year, a loss of about £400,000 which could never be recovered. It was reasonable to estimate that dairy farmers supplying butter factories, unless a bonus were paid above the guaranteed price, would be getting about £2.250,000 less than the market price for their butter. The principle underlying compensated prices, Mr Hamilton went on to state, was that farmers, who had to sell their products against the competition of the world, claimed a comparative reward for their labour and capital with the rest of the community. It meant that internal costs should not be allowed to rise any higher than a just comparison with export prices. If costs were pushed up higher than export prices warranted, then the farmers wanted consideration. A good example of the principle was seen in the manufacturing industries receiving compensation through increased tariff for increased costs.

“This is perhaps the most serious political problem facing New Zealand,” said Mr Hamilton. “It should not be difficult to see how the farmers, who have to sell against the competition of the world, might easily be forced to accept a lower standard of reward than other sections. Compensated prices means keeping the right balance between export prices and internal costs. To put it another way, it means giving attention to the farmers’ costs as well as to the price of his product. It means further, that standards of rewards for. other sections of the community should not be allowed to rise out of comparison with farmers’ standards. “This Government is making it exceedingly difficult for farmers generally. Consider the wage standard set by the Government on farms, compared with wages and conditions elsewhere. They passed legislation setting farm labour at 10s 5d per day, without keep, and based the guaranteed price to farmers on this wage rate, while they pay on relief public works 20s per day. They seem to estimate that building railways etc., is about twice as valuable a work in the community, as dairy farming. What a ridiculous position! All the farmer wants, and is entitled to, is economic justice.

“Further, the problem of the short-