FIXING THE PRICE.

Auckland Star, Volume LXIX, Issue 220, 17 September 1938, Page 13

FIXING THE PRICE.

SCHEME CRITICISED.

OPPOSITION LEADER'S VIEWS.

* HOIST WITH OWN PETARD."

<By Tolc^-rnph.—Pnrllamentflry Reporter.!

WELLINGTON, Friday

"The Government is hoist with its own petard." said the Leader of the Opposition, the Hon. A. Hamilton, in a ntfltenient issued this evening concerning the guaranteed prices for the current season, which were announced in the House of Representatives to-dav by the Minister of Marketing, the Hon. W Nnsli.

"If Ihe position were not so serious it would he almost ludicrous," Mr. Hamilton sa id. " I lie < iovcrument produced its Socialistic commandeer scheme with an assurance of benevolent treatment for the dairy farmers, and. in spite of warning notes sounded at the time, went blindly ahead in the belief that it could ignore world market conditions. Now the Minister of Marketing has admitted that world parity must be regarded as a determining factor.

"lie liar. had to choose between a large dolieit in the l>niry Industry Account and iiiDiiii.<tji 1 »l<» deficits in the accounts of dairy farmers arising f rotn t j le j,i<rh costs policy which his Government h?is dehU'ra telv pursued. In S pito of all the flowery \crbiagc which the Minister put into the Primary Products Marketing Art, tin- farmer in being left to carry the 1 >11 rill-11. Farmers' Reaction. f'iiimcr* may well fool arnazod at the Minister's statement," Mr. Hamilton continued. "An advisory committee was appointed some time ago, representing both t lie (« ove r n nicnt and the <lairv industry, and its unanimous recommendation was that the basic guaranteed price* sJijMild be 1 ~>.i;<)sd per 11) for butter a ' u ' S '77'kl for cheese. In a manner reminiscent of his juggling with the social security figures of the British actuary. Mr. (J. H. Maddex, the Minister has rejected the advice of e.\|>erts and has arbitrarily reduced these figures to M.Sitd and H.42d, respectively. " I lie advice of experts means nothing to Mr. N'ash. His view is that the arnr chair Socialist planners in the (Jovernment know far more about farming problems than men who have, spent 'their whole lives in close association with the dairy industry. I here a"e now two different statements a* to the working costs of the average efficient dairy farmer. One is the considered opinion of experts based on a consideration of evidence and statistics, and one is the despairing crv of a Minister who lias to think of deficits running into millions before lie can think of the dairy farmers —difficulties which he himself has helped to create. "Even the Ministers figures cannot be accepted as accurate," Mr. Hamilton said. "We know how he was forced to vary his estimates from time to time last year concerning the possible surplus in the Dairy Industry Account. \ow he estimates a surplus of £600,000 for the season just passed and usee this to predict a net estimated deficit of something over £900,000 at the end of the current season. In our view last season's surplus is likely to work put at something like £1,000,000, and this should provide for a corresponding reduction in the net estimated deficit at the close of the present season. Costs and Prices. "The Government's dilemma is purely and simply a result of Government action," Mr. Hamilton added. "The necessity for a correct balance between costs and prices has been ignored and as a result the Government has gone a long way toward destroying the economic equilibrium of the Dominion." Another point mentioned by Mr. Hamilton was the possibility, amounting almost to a certainty, that higher labour costs would absorb a portion of the increase in the guaranteed price. "What of the future?" Mr. Hamilton continued. "We realise that the dairy farmers want stability in their industry. In order to give the farmer that necessary degree of stability the National party when it takes over the Treasury benches after the elections will honour all commitments which have been entered into by the Labour Government with regard to the current season's prices, while at the same time we will take immediate action to reduce farming coats.

"Our first step wffl be to return to the farmer the ownership of his own produce," Mr. Hamilton concluded. "The commandeer principle in the Primary Products Marketing Act will be entirely removed. We will thsn discuss with the dairy industry all matters relating to marketing and finance."