THE FARMING YEAR

Wairarapa Times-Age, 24 May 1938, Page 7

THE FARMING YEAR

PRIME MINISTER’S REVIEW ADDRESS TO CONFERENCE. DISTRIBUTION OF DAIRY SURPLUS. By Telegraph—-Press Association. WELLINGTON, This Day. Addressing the annual Interprovincial Conference of the central and southern portion of the North Island Farmers’ Union branches,’ the Prime Minister (the Rt Hon M. J. Savage), reviewed the farming operations of the last season. There had been, he said, one unfavourable factor, vyhich was a fall in the value of the wool cheque from the record level of the previous season, but apart from wool the principal farm products exported had increased appreciably in value and indications for the remainder of the export year were equally favourable. For the year ending March last, butter exports, for example, increased two per cent in quantity, while the total value increased by just on 13 per cent., the increase being 64,000 cwt and the increased value £2,606,000. The export of cheese decreased in quantity by over 4 per cent, but the value increased by 6j per cent, the decrease being 74,000 cwt. but the increased value £361,000. Frozen lamb showed an increase in quantity and value of 6 per cent and 11 per cent respectively, the increase in quantity being 156,000 cwt, and the increase in value £950,000. The frozen mutton export increased 10 per cent and 14 per cent, the increase in quantity being 87,000 cwt and that in value, £224,000. There was a conference remit suggesting an independent tribunal to deal with the guaranteed price. The idea certainly commended itself to him. For one thing it would save the Government a great deal of worry. “I suggest,” he said, “that if you are satisfied about the remit, you see the Ministers concerned before you leave Wellington.” In addition to the guarantee of 112 s a hundredweight for butter, dairy farmers had been told by the Minister of Marketing that whatever surplus there was belonged to them, and it was now only a question of how the surplus was to be made available. Mr Nash had stated that the distribution of the surplus would be announced at a conference of dairymen in Napier. The surplus was now about half a million and probably would be more by the end of the season. The result of the first year of the guaranteed price—a deficit of £300,000 —meant an equivalent increase in the receipts of the dairy farmer. He had heard a lot of talk about the compensatory price, but the guaranteed price system could not be satisfactory unless it took account of everything in the ■ way of production costs. If dairy farmers were satisfied with a price tribunal a representative of them and the Government, and presided over by a Supreme Court judge that would satisfy him. PROBLEM OF COSTS. Much criticism was being revelled in on the score of costs. Obviously the farmer must be able to obtain a return sufficient to cover his costs and assure him a decent living. The Government was anxious to keep costs at a reasonable level. “I want to see you get the best deal possible,” Mr Savage observed, “because unless you are going on our exports can’t "go on.” Before the election, he had told farmers they were entitled to an equitable share of New Zealand’s total production. The guaranteed price was put forward to that end. It had never entered the Government’s mind that the Government would not consider costs, because they must be part of the problem. Unless all phases of the farmer’s problems were faced up to, his difficulties would not be solved. Figures showed that farmers were better off than they were two or three years ago he recalled the time when production doubled in ten years, but there was no increase in the farmers’ income. That could not happen under the guaranteed system. It might be argued that costs had gone up. but that applied to every section of the community. A request was made that they get the same deal as a man got in the Arbitration Court. He did not want to pacify the farmers temporarily, but wanted to get a solution of their problems, and if that were done they would get a long way towards solving the problems of the community. He hoped the Dairy Account surplus would be more than half a million. “There must be a payout," he stated.. “You can take that as definite. It belongs to you and you are going to get it, although it is not an easy matter to suggest a plan by which it can be distributed.” THE GOVERNMENT’S DESIRE. Referring to the Government's desire to keep costs down, Mr Savage said they must not lose sight of the fact that one man’s costs were another man’s income. The cutting of wages had been tried and they knew the result, but at the same time they must not spill money. However, wagecutting was not the best way of increasing incomes. Mi- Savage referred to the setbacks experienced by farmers recently through drought, facial eczema and the Hawke's Bay floods. The Government had rendered assistance. In the Hawke’s Bay floods, farmers had been helped by way of loan and direct asistance, and some had been paid to work on their own farms, clearing up and bringing the properties into production. The Government thought it better to help the farmer who knew his business rather than put somebody on the farm who knew nothing about farming. Facial eczema also was receivthe earnest attention of the Government and all steps were being taken and further necessary steps would be taken to combat the scourge.