PIP FRUIT PRICES

Ashburton Guardian, Volume 64, Issue 35, 20 November 1943, Page 5

PIP FRUIT PRICES

THE PROPOSAL FOR INQUIRY. GROWERS NOT SATISFIED. (P.A.) WELLINGTON, Nov. 19. The New Zealand Fruitgrowers’ Federation, in reply to the statement made by the Deputy-Prim© Minister (the Hon. W. Nash) last evening, says: “Mr Nash’s promise to set up another committee of inquiry into the pip fruit industry is ludicrous. Since the Government came into power the following commissions of inquiry have already sat: 1936, Coleman Commission; 1937, Departmental Commission; 1939, Picot Commission; 1943, Stabilisation Commission. In addition, the Government’s own body, the National Fruit Advisory Board, has recently reported on the alarming decline of production throughout New Zealand:

“Another survey of industry will only • cover ground already fully explored and, to judge by yesterday’s interview with the Ministers, they will not take any notice of the report, any way. The directors of the federation were led to believe that the Stabilisation Commission was to inquire into the whole cost of production and, at the request of the Stabilisation Commission, the federation prepared and presented its evidence accordingly. Now the commission reports on increased costs only—a matter which has never been in dispute. “When fruit was originally Purchased by the Government on the outbreak of war, the price offered w T as at least lOd a case below the cost of production, but it was accepted as a temporary expedient, as explained to Mr Nash repeatedly. “To continue to build the price on that temporary foundation is futile. The industry has been fooled again and there is a feeling that even the Ministers themselves may have been misled by their own officers.”.

REPLY BY MR NASH. ’ ASSISTANCE TO THE INDUSTRY (P.A.) WELLINGTON, Nov. 19. Commenting on the statement of the Fruitgrowers’ Federation, the DeputyPrime Minister (the Hon. W. Nash) said that while recognising the great importance of the production of fruit in New Zealand it was necessary to consider the affairs of the industry in relation to the economic position of New Zealand as a whole, and to ensure that it was seen in proper perspective. “The position is that before the outbreak of war the industry was in receipt of a State guarantee in regard to its exports,” said Mr Nash- “At the outbreak of war, when the export markets vanished, the industry was guaranteed an average return of 5s a case, which was increased to 5s 3d average for 1941 and 1942 seasons, the assistance given to the industry in 1941 amounting to the sum of £468,000. The following year the assistance continued, the cost to the Government being £130,000. Last season negotiations concerning prices were proceeding when th© Prime Minister announced the general scheme of economic stabilisation.

“Special consideration was, however, given to the financial position of the fruit industry, and additional cost allowances were granted which had the effect of improving the growers’ position for last season as compared with the earlier years of the war, and probably placing the industry as a whole in as good a position as it was in prewar years.

“During the last year, under stabilisation, growers’ costs have been firmly held, and at an interview which took place on November 18 I indicated, the additional assistance which the Government is prepared to give for the forthcoming season the effect of which would be to give growers a higher return to the case than they obtained last year. All inquiries which have been made into the affairs of the industry proved that quite a substantial proportion of the crops marketed are produced on a payable economic basis, and the economic survey which has now been offered is not merely a further inquiry, but has for its definite objective the placing of the uneconomic portion of the industry on a satisfactory basis. It is considered tfiat under war conditions, within the framework of the economic policy which aims at holding costs and prices the offer made by the Government was an equitable one.”