PROTEST BY FARMERS

Wairarapa Times-Age, 11 May 1939, Page 7

PROTEST BY FARMERS

AGAINST HIGH & RISING COSTS BIG MEETING HELD IN FEILDING GUARANTEED PRICE OFFER REJECTED. ADDRESS BY DOMINION PRESIDENT. FEILDING. May 10. Striking' evidence of the tremendous interest being taken by farmers in the problems they are facing today was provided in Feilding this afternoon, when 400 persons assembled in the Drill Hall to hear an address by the Dominion president of the Xew Zealand Farmers’ Union, Air AV. W. Mulholland, on the Government’s proposal for gnaranted prices for meat and wool.

Other speakers were Mr Lloyd Hammond and Mr D. Gordon, Taihape, president of the Wellington Central Provincial Executive.

After a long review of the effects of the Government’s economic policy on ‘..he farming industry, Mr Mulholland examined and condemned the Prime Minister's proposals for guaranteed prices for meat and wool.

A feature of the meeting was the almost complete unanimity shown by farmers in rejecting the guaranteed prices offer, a show of hands revealing only one supporter for the proposal. The meeting decided that the attention of the Government and the public generally should be drawn to the steadily deteriorating economic position of the farming industry. The chairman was Mr H. D. Richardson, president of the Feilding branch of the union. Farmers were welcomed to Feilding by the mayor, Mr T. L. Seddon. NEED OF UNDERSTANDING. “The unfortunate position of .the farmer today is that he has lost the sympathy of other classes in New Zealand, and it is the farmers’ duty to win back that sympathy,” said Mr Mulhollanf? That unfortunate position, he thought; was the result of a misunderstanding of the farmer’s position and problems. It was for the ultimate good of New Zealand that these problems should be understood. Though they were primarily concerned, at the moment, with the problems of the sheep farmers, all other farmers experienced difficulties as well. Though the prices received by shepp men this season were not disastrously low —they were about on a par with the price fixed by the Court of Review—the fact that meetings of farmers were being held all over New Zealand indicated that there was some compelling force of discontent. Farmers who depended for their livelihood on an income from wool and store sheep were in a very serious position indeed, and he could assure the meeting that the Prime Minister and the Minister of Agriculture were sympathetic to something being done. “The position is not confined to sheep farmers,” said Mr Mulholland. "Advances made by trading banks to dairy companies, which would largely be used in financing dairy farmers, increased last year by approximately £1,000,000. I had no idea the position of the dairy farmer was as bad as it evidently is.” During, the same period advances to stock and station companies increased by more than £1,000,000.

“TWO DIFFERENT POUNDS.” The cause of all that, of course, was that, while prices for farm products remained stationary, costs, unfortunately, did not. The reason was that while the economic policy of the Labour Party when first returned to power was a balanced policy—inflation of both export prices and internal costs — the Government, in action, had carried out an unbalanced policy—raising internal costs only. That had created two different pounds. The one with which the exporter, the farmer, was paid was maintained rigidly by regulations, and the other, with which he had to pay his costs, was of unknown value, but certainly purchased very much less in goods and services than the pound with which the farmer was paid. Mr Nash had only recently admitted that there would be further increases in costs which the Government would be unable to prevent. “After three years of all time records in export production and in a time of alleged unparalleled prosperity,” said Mr Mulholland, “the Government is forced to admit that our expenditure as a nation has so far exceeded our income that, in spite of having started that period with a credit balance of £40,000,000 in London, New Zealand people are in (danger of not being able to meet overseas commitments in the near future. “That situation has been brought about because the difference in values between the pound internally and overseas has encouraged people to import, because their money is worth more outside New Zealand. That was the major cause in the depletion of overseas funds. Instead of correcting the errors and omissions of its own policy, the Government made a still greater error in adopting import and exchange control to counteract one effect of its policy.” OUTLOOK IN MANUFACTURING. Though some manufacturers welcomed control of imports, which was a necessary accompaniment to exchange control, the more far-sighted ones were not so joyous about it, said Mr Mulholland. They realised that the strangulation of export industries must have severe repercussions on themselves. ■ The manufacturer depended on the primary producer to provide the overseas exchange necessary to enable him to obtain his plant, machinery and raw materials. Manufacturers, therefore, would have difficulty in obtaining materials and equipment to maintain last year’s production. • The Government, said Mr Mulholland, should have dealt with the cause and not with one of the effects. Mr Savage had said that, if the Government found it had made a mistake, it would admit and correct the error. If the Government had found it impossible to raise export prices, as its policy required it to do, then it should have the courage to admit its mistake and proceed to reduce costs to a level at which export industries could maintain production. It had' been estimated that wages constituted about 60 per cent of all costs that had to be met in New Zealand, said Mr Mulholland. That estimate took no account/of the fact that since 1914, the average weekly hours had been reduced by 141 per cent. When allowance was made for that, the average hourly wage of adult males was estimated to be 106 per cent higher than in 1914. Out of his receipts from a product which sold on the average at 21 per cent above the 1914 level, the farmer was called upon today to pay general costs which had increased by more than 100 per cent in the case of the hourly wage and by about 50 per cent in many other items. The total wages costs today represented three shillings for each 48 pound ewe exported and 2s 3d for each 36 pound lamb. AN INCREASING BURDEN. Mr Mulholland quoted figures showing the heavy burden of direct Government levies on the farming industry, but it was impossible to estimate, he said, what the indirect burden was. “It is certain in the immediate future that this burden will become heavier,” said Mr Mulholland. “Mr Nash has already indicated that he needs an extra £2,000,000 for Social Security. With a heavier falling off, in revenue, through (reduced imports and lessened income and other causes, he will need to raise something like £8,000,000 by new taxation if the 1939-40 Budget is to be balanced. It looks as if the Government demands will crush the farmer out of existence unless Government expenditure is heavily curtailed. “We have now three years’ experience of the guaranteed price in the dairy industry as a guide,” the speaker said. “By the close of this season farmers will have delivered between £60,000,000 and £70,000,000 worth of produce to the Marketing Department, and it is understood that the present deficit is not likely to exceed £1,000,000.” In other words, the amount in excess of market value paid to farmers would be less than one per cent. That the guaranteed price could not be other than closely related to market realisations was made clear by the Minister's actions and statements in connection with the fixing of the price for dairy produce for the season. COMMANDEER OPPOSED. Mr Lloyd Hammond said the meeting should consider Mr Savage’s offer of guaranteed prices for meat and wool, and ask themselves if guaranteed prices would relieve the present situation. Boiled down, the guaranteed price scheme was designed to commandeer produce. As a sheep man as well as a dairyman, he asked what sort of guarantee that was. “This is not a political issue, but it is one that affects farmers very vitally,” said Mr Hammond. If the dairy guarantee had broken down, what encouragement was there he asked, for the sheep man to embrace it. The Meat Board had done splendid work, and, if any kind of control was coming—and he believed it was — farmers ought to retain that control themselves. He would oppose control by any Government, whether Labour or National. He hoped he would never see the day when anything unconstitutional would have to be done, but if the present policy continued the time might arrive when the last straw would break the camel’s back. A MINORITY OF ONE. Concluding by paying a tribute to the yeoman work being undertaken by Mr Mulholland, Mr Hammond asked all those favouring guaranteed prices for meat and wool to raise their hands. There was a response from only one

man. A forest of hands was raised when the meeting was asked to express opposition to the proposal. Mr D. G. Gordon, president of the Wellington Central Provincial Executive of the Farmers’ Union, said the position of farmers in “marginal” lands should be brought before the public. Those men were only just making a living-in normal times, and any increase in costs affected them severely. Mr Ormond Wilson, formerly Labour member for Rangitikei, had admitted to him, he said, that the Government, in certain circumstances, would have to raise the exchange and abandon me 40-hour week. The following motion, moved by Mr B. McLeod, and seconded by Mr A. L. Brown, was carried unanimously:— “This mass meeting of farmers urgently draws the attention of the Government and the general public to the steadily deteriorating economic position of the farming industry, which, notwithstanding the increased personal efforts of tne farmer and while not now suffering from overvaluation of land or unduly high rates of interest and while realising for its products average prices which, under normal conditions, should enable farming to be carried on successfully, is unable frorp proceeds to meet the everincreasing costs, which are pressing so heavily upon farming as to make the position desperate for a large proportion of primary producers today.” i The meeting concluded with cheers ’for Mr Mulholland,