SHEEP INDUSTRY

Wairarapa Times-Age, 15 November 1938, Page 5

SHEEP INDUSTRY

IMMEDIATE OUTLOOK NOT

PROMISING NEED FOR GOVERNMENT ASSISTANCE. FARMERS' UNION DISCUSSION. Members of the Wairarapa Provincial Executive of the Farmers' Union took a grave view at yesterday’s meeting of the prospects of the sheep-farmer, and particularly the man working hill country and second and third class land. It was agreed that unless something were done immediately, many farmers would be forced off their land. There was general opposition to a suggestion that the Government might introduce a guaranteed price for wool and mutton.

After an extended discussion, approval was expressed of a Southland remit that the Dominion Executive approach the Government in a spirit of co-opera-tion with a view to holding a round table conference to discuss what the Government was prepared to do towards assisting primary producers. The president, Mr Hugh Morrison, said the losses from facial excema and other diseases had been colossal this season. There was a movement in the Old Country to impose more quotas straight away and he was afraid that more restrictions might be put on this year. The farmer in Great Britain was really selling his produce at a lower price than the New Zealand breeder. Something would have to be done to put the fat lamb breeder on his feet again. The outlook for the man farming hill country was indeed serious. Certainly indications pointed to wool price s being up by Jd to 1 a lb, but again increased costs” came into the picture. Wool could not be produced under Is a lb, while some farmers needed Is 2d a lb. The production of synthetic wool was also going up by leaps and bounds. Export prices for matured mutton were bad and it looked as if the day of the “king” wether had gone for good.

After stating that the position would have to be faced in some way, Mr Morrison said he had been approached to call a meeting in the Wairarapa to discuss a guaranteed price for wool. Personally he did not think the majority of farmers wanted a guaranteed price (hear, hear) and he himself was opposed to it. Something would have to be done to help the farmers who were in difficulties, especially the small struggling man on second class land who could not possibly make a living under the conditions existing today. Farmers would have to get their costs down and they would, if they were allowed to. SUBSIDIES & EXCHANGE. Referring to. rising costs, Mr W. J. Thomas said that any subsidy granted to the farming industry would increase taxation and the resources of the country were now taxed to full capacity. It was quite impossible to tax for a subsidy. If co&ts in New Zealand were more than 25 per cent higher . than those in Great Britain, then the rate of exchange should be higher than it was today. Mr Nash had no alternative-, but to raise the exchange rate. The Government had increased costs and it was its. responsibility to find a way out of the position thus created. Mr J. L. Heckler stressed the necessity for reducing costs, which in New Zealand were the highest of any producing country in the world. The outlook was bad and unless something were done the man farming secondclass land would go out. Wool values might be up a little this year, but prices for store and fat sheep would be > down. Synthetic fibre was still in its infancy and as far as its progress was concerned a great deal depended on the public. Mr J. C. Cooper said that if they had a conference with the Government they would have to have a definite proposal formulated; otherwise the Government would say: "We will take control of your wool and mutton." Mr D. McGregor said the increase in the manufacture of substitutes for wool was much greater than most people believed. There was more synthetic fibre manufactured today in the world than there was real wool grown. The farmers did not want to have their produce commandeered by the Government. CONFERENCE URGED. “The Government is as vitally concerned in this matter as we are as individuals,” said Mr A. Ross, who added that the Government should welcome the farmers co-operating with it in an effort to keep up the national income. He was not keen on a Commission investigating the position. The raising ofthe exchange rate was a two-edged weapon that might affect our relations with the Home trade. The sensible thing to do was for the leaders of the industry and the Government to get together and decide on some direct line of action.

Mr J. Andrew said it was necessary to devise a scheme for increasing the production of hili country and improving the quality of second and third class land. The amount of land that was deteriorating in New Zealand, .and would continue to go back unless something were done was not generally realised. Mr G. R. Thompson suggested that subsidised labour should be made available for farmers on second-class land. A subsidy should also be providad for the purchase of fertilisers. Mr R. W. Kebbell said that increased labour costs were making the maintenance of second-class land increasingly difficult. After next April, he understood, no subsidy would be available for clearing noxious weeds. The Government’s policy of high costs had always been a' mistake. If high costs were to be forced on the farmer then he must be provided with the wherewithal to pay those costs. He was opposed to a guaranteed price for wool and mutton but realised that something would have to be done and done immediately. “If we sit back and do nothing,” he said, “there will soon be a lot of bankrupt farmers.” In the opinion of Mr H. Bennett the Government should provide farmers on poor land with long term loans. Mr R. D. McKenzie: "Unionism has resulted in high costs. Scrub that was formerly cut for 15s an acre is now costing 35s an acre. ’ Mr J. Peterson: “If we go to the Government we must have an alternative to a guaranteed price.”