DAIRY PRODUCE EXPORT PRICES.

Auckland Star, Volume LXVII, Issue 143, 18 June 1936, Page 11

DAIRY PRODUCE EXPORT PRICES.

MR. NASH EXPLAINS

SCOPE OF MARKETING.

BUTTER AND CHEESE NOW.

OTHER PRODUCTS f LATER,

(By Telegraph.—Press Association.) HASTINGS, Wednesday. The statement that the Government had 110 intention of dealing with anything but dairy produce during the present season in connection with, its export marketing principles, was made to the National Dairy Conference in Hastings this afternoon by the Minister of Finance, Hon. W. Nash.

"One groat object we set out to achieve was the removal for all time of the fear of price falls and the ecstasies of price rises, - ' lie said. "Of course the farmer does not mind ecstasies, but there are often very unfortunate sequels aiul it is the avoidance of these that the Government policy will strive to accomplish." Mr. Nash said he had been reminded of Dickens' "Great Expectations." He did not know whether these expectations would be realised, nor could he tell what the price this year would be, but it would be more than the price obtained last year or the year, before, or the year before that.

Dealing with the provisions of the Act, Mr. Nash said the Marketing Department would ultimately take control of the marketing of all primary produce. That did not mean meat and wool would he taken in now or at any time ill the Immediate future, but when the imperative need for such control had been proved, the same procedure as had been applied to dairy produce could be applied to other products. People at the head of the fruit growing industry, said Mr. Nash, had already expressed their anxiety that the same procedure should he made to apply to the export of fruit. He had answered that he would discuss the request next year as it was not the Government's intention to include any produce other than butter and cheese under the Act this year. Existing meat and fruit hoards would be used as machinery for putting into operation the marketing system as it would apply to the fruit and meat industries.

I Where Will Money Come From? The great question was whore was the Government going to get the money, Mr. Nash continued. Before the passing of the Act he had discutwed the financial aspects with Mr. Leslie Lefeaux, director of the Reserve Bank, and had arranged for whatever money might be necessary to enable the dairy export policy, of the Government to be put into effect. There would be in the Reserve Bank an account into which all money from guaranteed prices would be paid, and into which proceeds from the sale of produce overseas would be paid. All that could be done at this end and if it were to be successful it, must be supplemented at the other end and not solely by Tooley Street. So far as Tooley Street merchants were concerned they would obtain the most profitable results In-co-operating with the New Zealand Government, and the Government hud not had word that they were unwilling to do so. They would have to carry out their marketing in accordance with the Government's intentions. Then they would be paid as well as it was humanly possible to pay them for their services.

Reciprocity With Britain. The dairy policy, eontinrfed the speaker, cauld not he put into effect unless the Government could establish a reciprocal trading agreement with the British Government. Under the newmethods of marketing it would be possible for him to say to the British Government, "We can produce 150.000 tons of butter. We have taken every step to ensure its uniform and maximum quality. We can let you have it at the minimum price according to what the farmer ought to be paid for the work of producing it, and we agree to take from you goods to the value of what we receive for our butter. You take thie £15,000.000 worth of butter from us and we will in turn, after making provision for interest and for the redemption of the debt we owe you, use the money in Britain for buying what we want."

Those principles, said Mr. Nash, would be in being among all countries within the next ten years. "That may mean." Mr. Nash added, "that our produce will be taken nowhere else, but I won't worry. It may mean that we will have to take all our cotton goods from Britain and not, say, from Japan."

If there were products that might be brought into being in New Zealand and that were not wanted hv Britain then the Government would make bilateral agreements with companies that would take those products.

World As Economic Unit. Going on to speak of his conception of the world as one economic unit, Mr. Nash said the rest of the world could not keep Germany, or Japan, or India on a lower level than itself. "If we hq,ve resources that are not available to other countries," he said, "then we must make bilateral agreements with those, countries." He had been asked whether, if the prices realised were greater than guaranteed prices, the excess would belong to the farmer or to the Government. As Mr. Savage had said, the Government did not want to make a profit out of any industry. If there were excess it would be credited to the dairy industry account and used for the benefit of the industry. Why not a bonus? he had been asked. There would be no bonus. He could say, however, that the excess, if any, would not be used without consultation with representatives of the industry. Under the policj r of the Government no section of the community would benefit at the expense of another section. The Government was trying to ensure that every man on the land, every man on the waterfront and every clerk in an office was paid a legitimate share of the wealth he brought into the country. In answer to a question which dealt with the possibility that men who are offered 10/ a day on Public Works frill not be willing to work on farms, and that consequently farm labour may be difficult to engage, Mr. Nash said the Government was acting in the matter. It was ensuring that farm labour would be .available, and the rates of pay had already been determined. It meant that if work were not available on Public Works and farm labour were available men refusing to accept farm work would riot be paid sustenance. »