GUARANTEED PRICE.

Auckland Star, Volume LXIX, Issue LXIX, 21 September 1938, Page 23

GUARANTEED PRICE.

SOUTH TARANAKI VIEWS. SATISFACTION* EXPRESSED. (By Teloffrarli. —Press Association.) HAWERA. Tuesday. (ieneral satisfaction with the jruarantee<! pric« is expressed among tho fanning community in South Taranaki. although there is some disappointment that the Coverniiiciit did not accept tlio leeoinmeixliitioiw of the advisory cominitteo. The coimiiittee given :i liiisis rif the average for the Dominion to work on but in the case of a large number of South Taranaki factories the average was higher than the basis, eo that the increase to Tiranaki would be !<•<.-; than to some other districts.

Oho fit nnerV statement, that the industry should be well satisfied with a. price Jospi tlian the oomniittce's reconiuicndiition. «o that a reserve could be osttililUhcd. was a point in oondemnal ion of the Government's policy. by reason of the fact that it had made no provision for any reserve for future your*, stated one' company secretary. Another declared that the price wa« not disappointing eo far ae Taranaki was concerned.

"Tho price is reasonable, and the wonder spoms to be how long the Government can keep going at the price," he *aid. "The action of the Government, however, in reducing the .pric«s recommended by the committee proves that it has no faith in its own echenie, and that it must take notice of world markets for price fixation. This ie despite thf fact that internal costs may rise to such a level a« would jifstify a jruarantecd price, and which will be much hijrher than any Government could pay." This company secretary considered that anything over 16d should ehow a good return to the farmer, provided he was not faced with labour trouble*.

In another quarter it -was considered that the Government's ability to pay the prices announced wa« dependent on overseas market*, and if these realisations did not average those of last season, it might lie aseumed that the Government would invoke ite powers under the Act and make a reduction. Thw was a point farmers should note carefully, for, inasmuch as the increases granted in the past season were pro rata over the whole season, it mijrht be assumed any decrease would operate pro rata also. The opinion was expressed, therefore, , that in preparing their budgets for the season farmers would be well advised to make an allowance for euch a contingency.