A PROMISE NOT KEPT.

Auckland Star, Volume LXIX, Issue 220, 17 September 1938, Page 10

A PROMISE NOT KEPT.

The report of the Guaranteed Prices Advisory Committee was unanimous, and unanimously the members, recommending a payment of 15.605 d per lb for butter and 8.775 d for cheese, said they could not " make a definite finding regarding the possible financial implications involved in the payment. The Government, whose business it is to consider the financial implications, reduced the prices to 14.89 d and 8.42 d respectively. Those who value financial prudence highly, especially in a Government, will not find fault with this decision, for which we may suppose Mr. Nash is chiefly responsible. If the committee's recommendations had been accepted, the estimated deficit would be £, 2,824,000; under the reduced price the estimate is £935,000. Considering the current conditions and exceedingly dubious prospects abroad, the general body of taxpayers may feel pleased that their contingent liability is no greater. But it must be borne in mind that this £935,000 is the estimate only if prices remain relatively high; in the event of international fears being realised the consequences to the dairy industry account would be incalculable. Leaving these possibilities aside, it may appear to the unprejudiced observer that for New Zealand to be deliberately budgeting for a substantial deficit in its dairy account—in a year of expected high prices— is absurd.

The farmer has another point of view. Ever since before last election he has been led to expect a guaranteed price which would accord with Mr. Nash's formula. He

has not had it, and he is not to have it now. The advisory committee, of whose seven members three were the industry's chosen representatives, actually agreed on a price which they thought satisfied the formula. 45tit the Government has cut the price down. It matters not to the farmer that, the Government's reasons lor reducing the recommended price were excellent ones; it has not fulfilled its promise to him. Tlie fiovernmcnt, in fact, promised more than it could safely perform, and the proof of this is now exposed beyond doubt. It is a lesson that not only the farmer, but other sections of the community, should bear in mind in the coming month, when promises will lie thick about the country.