MOUNTING COSTS

Wairarapa Times-Age, 31 May 1938, Page 7

MOUNTING COSTS

FARMERS’ UNION PROTEST STATEMENT BY DOMINION EXECUTIVE. PRIME MINISTER’S REPLY CRITICISED. (By Telegraph—Press Association.) WELLINGTON, This Day. Dissatisfaction with the Prime Minister’s reply to a protest against the "e-ndless mounting of costs, especially in the face of falling prices,” is expressed by the executive of the New Zealand Farmers’ Union. The protest, which originated from Southland, stated that recent disproportionate increase in wages and reductions in hours in certain industries meant a reduction in the spending power of the producers, and would ultimately reduce production; in other words, spending power had not had the result claimed for it, because, in the face of rising purchasing power, the value of primary products was on a gradual but marked decline. The 40-* hour week, it was contended, was unreasonable, uneconomic and in many eases unworkable. In recent years primary producers had suffered considerable capital loss, and they were forced to work long hours with little hope of improving their position under present conditions. The Prime Minister replied that he was unable to understand the reference in the resolution to the “marked decline” in the prices for primary produce. As far as butter and cheese were concerned, the return to the farmer was protected by the guaranteed price; the prices for meat products were quite satisfactory from the farmer’s point of view; and returns from the recent wool sales showed very good prices for this year’s clip. “The reply shows either failure to understand or total disregard of the disabilities under which the primary producers of this country are expected to carry on,” the executive 'of the union now states. “There has been a ‘marked decline’ in the prices for farm produce: the returns to the farmer are not protected by the guaranteed price, because the benefits have been cancelled out by increased costs; while meat prices are still payable there has been a drop of from 12 to 17 per cent between the lamb prices ruling during the 1936-37 and the 1937-38 seasons; the returns from wool show a decline in the vicinity of 40 per cent; the very fact that some industries are working 40, some 44 and some 60 or 70 hours a week shows how ‘unreasonable, uneconomic and unworkable’ the Government’s 40hour a week policy is.” •