The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun. MONDAY, JULY 3, 1939. UP THE SPIRAL.

Auckland Star, Volume LXX, Issue 154, 3 July 1939, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun.

MONDAY, JULY 3, 1939. UP THE SPIRAL.

For the cause that lacks as»\gtanoc. For the. icrotnj that reeds resistance, For the future in Ihe distance, And the good that we can do.

The Minister of Marketing before the boffiinnny o| the current dairying season n\crroi!f the iinanimou.s recommendation of tin , _'.inraisti'cil price iirlvi.-ory coniinittPe, on which the Government had its representatives. Though the coinmitteo recommended the payment of l-i.6o.*>d per Hi for butter, and 8.775 d for cheese, the Mini-ter decided to pay only 14.59 d and S I'Jd. These prices have been paid, and us a re.-nll of low marker price.-, there will be n larue deficit in the dairy industry account. The deficit would bo larger if the indu-try's production this sen-on had not l>een reduced by bad weather and other conditions. It would be larger still if the Minister had acted on the advice of the committee and paid higher prices. But the National Dairy Conference, though, in the words of one of its chief spokesmen, "fully aware of the financial implications involved, ,, has decided to press for the

payment next sc-ison nf the price which .Mr. Xnsli refused to pay hi>t st-asnn. This does not necessarily mean that — it Mr. Nash tin roc.-—next season's detieit will be lamer than lliis M'iiMinV, lor no one can say what mnrket prices will he next season. But it does mean that the Government will be asked to take the risk of another heavy deficit being piled on this season's, which nlrendy is estimated to exceed £1,7.50,000.

In supporting this "just demand" of the cnnf'erpncp, Mr. A. J. Sinclair was remarkably fmnk. "It is beside the point," he snirl, " tn say that the country cannot nffnrrt it. There are ninny things which this country cannot afford to do, but we see no indication on the part of organised labour to recognise this fact; neither do we sre any indication on the part of the Government to recognise it ... costs and prices will continue to chase each other in a vicious spiral unless the Government is prepared to alter very drastically the policy which has placed this country in such a difficult position. The dairy farmer refuses to be singled out «s the scapegoat. ..." This attitude is perfectly understandable. Advantages granted to one, section of the community should not be denied to another, particularly when that other does not enjoy the benefits of the forty-hour week. If thero is to be "stabilisation," which the Government wants, it must be comprehensive, but it is fairly obvious that neither the unions nor the dairy farmers are going to help the Government to attain it. Both feel themselves obliged to push on up the spiral. Before long the Government will be obliged to say flatly that the time has come to stop. But the "stop" order must be of' universal application, and it must be accompanied by measure.*, however distasteful, to ensure that money paid will be fully earned.