NO INCREASE

Ashburton Guardian, Volume 61, Issue 17, 31 October 1940, Page 3

NO INCREASE

THE GUARANTEED PRICE.

■AIRY INDUSTRY PROBLEMS.

MINISTER UNDER. FIRE.

(Per Press Association!). WELLINGTON, October 30. A clear indication that there will be no increase in the guaranteed price for the 1940-41 season was given the Dominion Dairy Conference by the Minister of Finance (the Hon W. Nash) to-day. The Minister said also that the price in general would remain constant for the period of the war if New Zealand received the same price for her produce, but if there were exceptional circumstances the Government must come in. At the morning session the conference passed a motion, part of which expressed “strong dissatisfaction with the manner in which the Minister has evaded his responsibilities to the industry as expressed in Section 20 of the Primary Marketing Act, 1936.” When he arrived in the afternoon Mr Nash protested that before he had come he had been condemned in the resolution.

Mr Nash said that the invitation « from the Board was for him to come to the conference and discuss the problems of the industry. Before he had a chance to come he had been condemned in a resolution passed that morning. “Is that playing the game?” the Minister asked. “Since I have been associated with the Government and the farming industry I have never seen a more discourteous resolution and procedure. Before there is any chance of discussion, a resolution is passed condemning me in two particulars. Mr C. P. Agar (a member of the Dairy Board): “You have had two years, sir.” Mr Nash: “It may be Mr Agar’s way of doing it, but it is not the way of the average decent farmer.” Mr W. E. Tale (president): “I do not think, Mr Nash, it is of any use pursuing those lines.” Mr Nash: “Was this resolution carried?”

Mr Hale: “Yes.” Delegates; “Unanimously.”

Tributes to Farmers.

Mr Hale: “If you do not want cooperation then say so.” (Applause.) Mr Nash: “I am saying that this was not the way to get it.” Proceeding , with his address, the Minister raid . that the economic stabilisation confoience had come to certain recommendations. Since then, with other members of the Government, he had been taking every possible step that could be taken to give effect to the resolutions. He had been hoping to come and discuss what had taken place at that conference. ' A delegate: “That is wliat we want. Mr Nash: “I have been condemned before I got here.” Continuing, Mr Nash paid tribute to the farmers of the Dominion, and particularly the dairy farmers, for the splendid work they had done and the co-operative spirit there had been in the industry. The guaranteed price, 'Mr Nash said had brought a greater element oi stability to the industry than it had. ever had in its history. The deficit in the Dairy Industry Account to-day was £2,160,000. The demand for an increased price at the conference last year had been fairly strong. He had said that it was impossible on the evidence he had at that time to x the price any higher, but that there were added costs. The Government would be glad to go into them and to the extent that they were proved to recommend that something should e done. The Price Tribunal, in determining the price to be charged by manufacturers and others allowed hi to add any extra added costs provided the Tribunal was satisfied, in industry itself could not carry them. A delegate: “We are tied to the price.” Mr Nash replied that there were two qualifications to that. The price o fertiliser was being maintained at its present level, and the Government had done what it could to bring men back to the farms. It was paying 30s a week for six months and 15s a week for the subsequent six mouths for inexperienced labour taken on the farms, and was paying married men. who went into the country £1 a week allowance. Question of Pay. A delegate : “Wily didn’t you give us the extra price so that we could pay our own men?” Mr Nash: “There was a considerable number of men in the industry that it would not be justified to pay the pride to.” Proceeding Mr Nash referred to tli benefit of the rural housing scheme and said that the Government proposed to maintain the prico of superphosphate. It would also take into account factory costs if they became abnormally high and in excess ot the amount allowed in the price. There was some suggestion in the resolution that the question of procedure in connection with costs had not been carried out. There would be costs incurred on the farm that would be greater than the costs incurred when the price was originally fixed, the factory cost had not been completely met, and it could not be met, m the Minister’s opinion, because the nation was at war. “The guaranteed price formula and procedure remains,” said Mr as i, “with the qualification that wo are at war and cannot do what we would do in normal times. When we ge iacv to normal the dairy farmers will all the help possible.” The Minister said that he had talked to 20 farmers last Sunday and they had said the price would do them. What had hurt him was the statement that he had evaded his responsibilities. He was not the Government. He was one member of it and he happened to be in cliaig - of marketing and finance. He ia never evaded anything. ‘ I came e•the last time and told yon wo cm. d not pay any more money, M

said. “I have never worried about coming and facing people who disagreed with me. I have never had any other approach to the dairy industry than with tho object of getting a decent standard of living for the farmer.”

Tho Minister devoted considerable time to answering questions put by delegates. In reply to one Mr Nasli said that in its approach to the United Kingdom, the New Zealand Government put up the idea that if prices of goods the Dominion bought from the United Kingdom advanced by more than 10 points, the Dominion should, have the right to raise the question of prices they paid for our produce. “We are paying much mom for a. lot of commodities we import,” said Mr Nash, “but wo have not the heart to ask the United Kingdom Government for more.”

Mr H. E. Blyde (Taranaki) asked whether the Minister would not apply the same principle to fajrmers as he applied .to other sections of the community. The worker had received a 5 per cent, rise im income and the public servant bad got a. rise. Mr Nash.; “The extra price Would help the rich man more than the poor.” A delegate: “There are no rich mien.”

Mr F. W. Seifert (northern ward): “Do you propose to pay dairy farmers on £260 or less the 5 per cent?”

Mr Nash: “I think ther'e is something iin that if you will show me how to do it.”

Replying- to a further question by Mr Blyde, the Minister said that in general the economy of the country would have to be organised on, the basis of what -it got for exports. There might be circumstances in which the Government would have toi pay more than it received. After the war the country might get 68s or 70s for butter instead of 112 s, and that was where the Government had to come in.

A delegate: “What would it do at point?” Mr Nash: “The Government would have to ensure that the farmer got a biggejr price. We would have to take steps to give him a greater sliaite 1 of national income than he got from the actual price of his produce. If I am a member of the Government at that Timei I will guarantee that it is done.” Pribe To Remain.

A delegate : “If we agree to stabilisation 1 at the present figure will the Minister give us an assurance that no increases in the remuneration of any other section iof the community will be allowed?”

Mr Nash: “The Government is taking every step to give effect to the recommendations of. the Stabilisation Conference. I cannot give you that pledge, but I Avould point out that the Economic Conference recommendations were carried by representatives of workers, manufacturers and farmers,” Mr W. Marshall (ai member of the Dairy Industry Council): “Is the conference to take it that with tlic exception of certain subsidies, the Minister lias decided that the price for the 1940-41 season will be the same as for the previous two years?” Mr Nash: “Yes, in general.”

Mr Marshall: “Is it fair that ai man on a lower income should pay part of the 'higher income) granted to others?” Mr Nash: “The average farmer will have a bigger income this year tlqui last year.”

A delegate: “Wliy?” Mr N ash: ‘ ‘Because of the season and because he is working harder.” The Minister added that he would be prepared to discuss ways of subsidising farmers getting less than £260 a. year as with others.

Replying to a question by Mr Marshall on this point, Mr Nash, said: “It is noi use trying to pin me down in a conference like this. If you come to me I will discuss ways_atnid means with you to give the same treatment to the dairy farmer on a smaller income as is given to people outside on a like income.”

Mr A. J. Murdoch (a member of tho Dairy Board): “Is it reasonable and fair 'to suggest that an industry like, this should have a differential price?” Mr C. J. Parlane (Neiw Zealand Cooperative Dairy Company): “Would you take into account the number of hours farmers work?” Mr Nash: “I do not know. We could discuss that.”

Referring to. Mr Nash’s statement that farmers were very much better off this year than last, a delegate asked whether farmers found any mere capital for their farms to produce that high income. Mr Nash: “They may have, done.” A delegate: “What are you going to pay us this year for our dairy produce? You have not said definitely yet.” Mr Nash: “I have said clearly that the present procedure would continue.” The delegate: “Is the guaranteed price to remain the same for the duration of the wair?” Mr Nash: “I have not said that it would remain constant for tlie duration of the war. The price in general will remain constant for the period of the war if wo get the same price for our produce. If there are exceptional circumstances the Government must come in.”*