TO SOLVE GLUT.

Auckland Star, Volume LXV, Issue 65, 17 March 1934, Page 10

TO SOLVE GLUT.

DAIRY PRODUCE PLAN. ALTERNATIVE TO BONUS. NEW MARKETS THE KEY. (T'y Telegraph. — Tress Association.) HAWERA, this day. Tn an interview to-day .Mr. IT. .G. Dickie, .M.l\ for l'atea. made a suggestion, as an alternative to the suggested bonus on butterfat, that the industry should withhold some 20.000 tons of produce from the London market, the industry to be reimbursed at the cuncnt London parity by the Government and the surplus produce to be sold in other countries with the object of opening tip new markets. Alr. Dickie recalled that Mr. Coates, in his pamphlet "A Butter Quota or n Free Market?" issued last year, stated that, if a (i per cent reduction on exports increased the London price from 70/ to S-l/ a cwt. the smaller volume of produce would realise £230.000 more, and the Dominion would have 20.000 tons of produce on hand which had cost it nothing. The fanners of New Zealand were not. prepared to take this gamble, said Mr. Dickie, and he suggested that the Government should purchase this surplus at 70/ and use it to explore new markets. If Australia would do the same the fanner might obtain an increased price in London, while the Government might not lose very much over marketing the 20.000 tons elsewhere. The total cost to the Government of 20,000 tons at 70/ per cwt would be £1,400,000, a good share of which would be recovered, while a straight-out subsidy or guaranteed pi'ice of 10d to the farmer at current prices would cost the taxpaver £.'1,000,000.