TIDE OF COSTS

Waikato Times, Volume 122, Issue 20512, 31 May 1938, Page 10

TIDE OF COSTS

FARMERS’ DISABILITIES PRIME MINISTER CRITICISED REPLY NOT SATISFACTORY (Special to Times.) WELLINGTON, Monday. “ The reply shows either a failure to understand or a total disregard of the disabilities under which the primary producers of this country are expected to carry on,” states the executive of the New Zealand Farmers’ Union, referring to the Prime Minister's reply to the Southland protest against the endless mounting of costs. The protest stated that recent disproportionate increases 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 the 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 cases unworkable. In receipt 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 Marked Decline The Prime Minister replied that he was unable to understand the reference in the resolution to the “ marked decline ’’ in prices for primary produce. As far as butter and cheese were concerned, the return to the farmer was protected by the guaranteed price. Prices for meat products were quite satisfactory from the farmers’ point of view, and returns from recent wool sales showed very good prices for this year’s clip.

“ There has been a ‘ marked decline ’ in prices for farm produce,” the union’s executive now states. “ Returns to the farmer are not protected by th'e guaranteed price because benefits have been cancelled out by increased costs. While meat prices arj still payable, there has been a drop of from 12 to 17 per cent between lamb prices ruling during 1936-37 and 1937-38. The season's 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 40-hour week policy is.”