GUARANTEED PRICE.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 7

GUARANTEED PRICE.

GOVERNMENT CRITICISED

" INSUXT TO THE FARMER,"

(By Telegraph.—Press Association.)

WELLINGTON, this day

"I am sorry to say it, but it seems incredible that the Government should insult the dairy farmer by compulsorilv taking possession of his produce, initiating legislation involving him in heavy increased cost and paying him such a miserable price," said Mr. A. .T. Sinclair, secretary-manager of the Te Awainutu Co-operative Dairy Company, and a member of the special committee set up by the Government to investigate certain problems concerning the Primary Produce Marketing Act, when interviewed after the announcement of the guaranteed prices for dairy produce. Mr. Sinclair estimated that during the coming year increas'.ul factory costs would absor.b a halfpenny per pound of butterfat.

"Tlu Government's guaranteed price can be paid to the industry without any subsidy if this season's output of butter realises an average of 107/ in London," he said. "With the upward trend of industry in Great Britain to-day the Government is playing very safe. The price paid by the Government will enable highly eflicient factories to pay out approximately 1/1 per lb of butterfat for the season, but from this the farmer must deduct the increased cost of operating his farm and running liis home."

Mr. Sinclair concluded by saying that if the daify farmer wanted to know just where lie t would stand * during tlie next twelve months he could form an idea by assuming that he would receive lid per pound of butterfat for the next season's supply, or approximately IJd per pound less than he had realised on a free market.