“AN EVASION”

Ashburton Guardian, Volume 61, Issue 3, 15 October 1940, Page 3

“AN EVASION”

LETTER FROM PRIME MINISTER, PRIMARY PRODUCTION SURPLUSES. CHAIRMAN OF COUNCIL RESIGNS ALLEGES FARMERS BEING CRIPPLED.

Claiming that an evasive reply had • been given to him by the Prime Minister (the Rt. Hon. Peter Fraser) on his representations in the interests oi producers, many of whom he feared might be crippled financially, through ovor-prodnetion, Air C. A. Campion, chairman of tho Mid-Canterbury Primary Production Council, has resigned his seat.

Mr Campion’s letter to the Secretary of the Council, states:—

“Please accept my resignation as chairman and member of the Primary Production Council. For some time I have been concerned lest other sections of primary producers who have responded to appeals for more production should he let down and financially crippled as the potato-growers have been. I wrote to the Prime Minister abo’ut the matter, asking for an assurance that any commodity over-produced as a result of the appeals for extra and more production should not be- allowed to financially embarrass tho producer and that he should at least receive the base cost of production, specially mentioning the possibility of oats being over-produced. “I enclose the Premier’s reply to my letter which, as you will see, is nothing more than an evasion and in some respects is contrary to fact on the potato question and in regard to oats or any other commodity over-produced, a complete shirking of any responsibility on the matter. Therefore I can no longer honestly remain a member of a Primary Production Council appealing for increased production, knowing that some may be crippled financially as a result of these appeals.”

The Prime Minister’s letter to Air Campion read as follows:

“I have to acknowledge receipt of your letter of the fifth inst., in reference to the marketing of the South Island potato crop and have carefully noted your comments in -connection therewith.. In reply I would point out that the question of disposing of the surplus potatoes has been receiving the attention of the Government for some time past and that already considerable assistance has been given the industry by the shipment of 5000 tons to Australia, by local advertising to stimulate consumption, by railway concessions to permit the utilisation of undergrade potatoes for stock-feeding purposes and the regulations of the grading of potatoes shipped from the South to the North Island. In addition to the quantity being shipped to the Commonwealth of Australia, every effort has been made to find markets in other parts of the world.

“So far as South America is concerned numerous inquiries have passed /Between the Dominion, Argentine and Uruguay but unfortunately no shipping space could be made available for the potatoes even if the business was offering. Dealing with your criticism of the introduction of a maximum price for potatoes by the Price Tribunal I feel that it is generally agreed that the market price fixed of £4 10s was considerably above the market parity and this has been proved to be correct because since the price order was removed there has been no upward movement in the price of potatoes. “It may also be of interest to you that although there has been an increase in the acreage of potatoes planted last season the total area was not excessive, as compared with " former years and was probably occasioned to a large extent by the fact that potato prices soared to such high levels last year. The position was also further accentuated by the exceptional favourable seasonal conditions which resulted in a considerable increase in the average yield per acre. I.have also noted your reference to oats but here again I would point out that the Government cannot be expected to accept responsibility for surplus crops unless of course the growers concerned desire the Government to organise the industries concerned on a national basis.”