PRICE PROSPECTS

Waikato Times, Volume 127, Issue 21229, 27 September 1940, Page 2

PRICE PROSPECTS

PRIMARY PRODUCTS J INCOMES OF FARMERS GUARANTEED STABILITY “The immediate future, as far as the prices for primary products are concerned, is fairly clear,” said Mi H. E. Worsp, chairman of directors oi the Auckland Farmers’ Freezing Company, Limited, at the annual meeting of the company today. “With fixed prices for most of New Zealand’s farm products, and the likelihood of those prices continuing for the duration of the war, the farmer is provided with a margin of profit so long as costs and taxation do not soar too high. “Although no one wishes to, or is likely to make any extra profits owing to war conditions, farmers who have been producing at a loss or on a bare living margin, ought not to have any increase in income that has been brought about by improved seasonal conditions, or war effort, classed as excess profits and so be left without means to enable them to increase production and meet their obligations. Guaranteed Stability “The time has arrived for a guaranteed all round stability; it is not fair to ask farmers, salaried men and people with fixed incomes, should continue to accept what they received before the war, while the higher wages are being given which are leading to higher costs and prices. One section should not be permitted to build up its income on a price raising basis at the expense of others. “This is really the vicious spiral and, if persisted in, must inevitably result in decreased production. “The war entails sacrifice but there should be some equality and no one section of the community should be allowed to offset war taxation by demands for higher wages without any corresponding productive effort. There is plenty of room for cost reduction at present. The legal limit of the 40-hour week is one example. “Industry, trade and transport are today more hampered by regulations than has ever been the case in this country- The time, effort and money wasted by industry in conforming with regulations which interfere with enterprise and production, and the maintenance of public servants who are responsible for maintaining regulations and inspection, is very substantial and, one would think, must far outweigh any gains that arise therefrom. “These regulations and labour restrictions are greater in the town than in the country. Farming Costs “However, in the primary industries, as in all others, production is largely determined by costs. Farming costs at present are high and this is one of the factors that is hampering primary production, some part of which has recently declined. These costs are largely the result of prices charged for their services by regulated and sheltered industries. “Transport is one example but only one of many. A reduction in the costs of the sheltered industries would increase New Zealand’s export production and swell the national income from which New Zealand has to finance her war effort and on which our standard of living depends. “What is cf paramount importance in this country today is that a halt should be called in continually recurring regulations and inspections and that all classes cf the community should work together to assist the Government to give Great Britain its utmost help to win the war.”