FARMERS’ LOT

Waikato Times, Volume 122, Issue 20506, 24 May 1938, Page 8

FARMERS’ LOT

GOVERNMENT EFFORTS PRICE TRIBUNAL APPROVED COSTS PROBLEM RECOGNISED MR SAVAGE REVIEWS SEASON (By Telegraph.—Press Association) WELLINGTON, Tuesday Addressing the annual inter-pro-vincial conference of the central and southern portion of the North Island Farmers' Union, the Prime Minister, the Right Hon. M. J. Savage, reviewed the farming operations of the last season. There had been, he said, one >mfavouragle factor which was th *>. fall in value of the wool cheque fro/ 1 the record level of the previous seascj, but apart from wool the principal farm products exported had increased appreciably in value and indications for tlic remainder of the export rear were favourable. For the year ending March last butter exports, for example, increased 2 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 £2.060,000 The export of cheese decreased in quantity by over * per cent., but the value increased by 64 per cent., the decrease being 7 1.000 cwt, but the increased value, £360.000. Frozen lamb showed an increase in quantity and value of 6 per cent, and li per cent, respectively, the increase being 156.000 cwt and the increase in value, £950,000. Frozen mutton exports increased by 10 per cent., the increase being 87,000 cwt, and in value, £224,000. There was a conference remit suggesting an independent tribunal to deal with the guaranteed price. The Idea oertalnly commended Itself to him. For one thing It would save the Government a great deal of worry. “ I suggest ' that if you are satisfied about the remit see the Ministers concerned before you leave Wellington." he said. In addition to the guarantee of 112 s per cwt for butter dairy farmers had been told by the Minister of Marketing, the Hon. W. Nash, that whatever surplus there was belonged to them and it was now only a question of how the surplus was to be made available. • Distribution of Surplus Mr Nash had stated that the distribution of the surplus would be announced at the conference of the dairymen at Napier. The surplus was now about £500,000 andproba-bly would be more by the end of the season. The result of the first year of the guaranteed price was a deficit of £300,000 and meant an equivalent increase in the receipts of farmers. He had hettrd 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 representative of them and the Government and presided over by a Supreme Court Judge that would satisfy him. Much criticism was being levelled on the score of costs. ’Obviously the farmer must be able to obtain a return sufficient to cover costs and assure him a decent living. The Government was anxious to keep costs at a reasonable level. Costs Part of the Problem “I want to see you get the best deal possible because unless you are going on our exports can't go on," he said. Before the election he told the farmers they were entitled to an equitable share of New Zealand's total production. The guaranteed price was put forward to that end. It 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 the farmers were better off than two or three years ago. He recalled the time when production had 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 hut thatapplied to every section of the community. Pay-out to Dairymen The request was made that they get the same deal as a man got in the Arbitration Court and he (Mr Savage) was willing to give the‘farmers the same deal as a man got in the Arbitration Court. He did not want to pacify farmers temporarily but wanted to gel. to the solution of their problems and if that were done they i (Continued in next column)

ior tnree montns. would get a long way to solving the problems of the community. ■He hoped the dairy account surplus would be more than £500,000. “There must be a pay-out,” he said. “You can take that as definite. It belongs to you and you are going to get It, although. It la not an easy matter to suggest a plan by which It can be distributed.” Referring to the Government's desire to keep costs down, he said they must not lose sight of the fact that one man’s costs were another man's income. Cutting wages had been tried and they knew the result but at the same time they must not spill money. However, wage cutting was not the best way of increasing incomes. Relief of Hardship Mr 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 the farmers were helped by way of loan and direct assistance 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 was also receiving the earnest attention of the Government and all steps were being taken and further necessary steps would be taken to combat the scourge. OPINIONS OF FARMERS TRIBUNAL ALREADY SOUGHT THE COMPENSATING PRICE (By TelpfrranTt — Association) WELLINGTON, Tuesday In a subsequent discussion at the farmers' conference it was pointed out that despite the Prime Minister’s suggestion that the question of a tribunal should be very carefully considered before a decision was made the whole of the dairy industry had asked for a tribunal and could not do other than press for its establishment. Another point made was that the compensatory price was a plank of the union's platform and no decision should be made which would preclude consideration of the scheme by the suggested tribunal. A definite lead should be given as to how the compensatory price should be put into operation. The detailed working out of the guaranteed price had not been discussed with the dairy industry and care should be taken to see that the principles underlying the compensatory price scheme were generally understood ahd approvedIt was decided that the remits and suggestions bearing on the proposed tribunal be re-drafted for submission to the conference later.