"NO INCENTIVE."

Auckland Star, Volume LXX, Issue 191, 15 August 1939, Page 10

"NO INCENTIVE."

GUARANTEED PRICE.

LEVEL IS TOO LOW.

DAIRY COMPANY OUTLOOK. '•GRAVE INJUSTICE" ALLEGED. (By T»l"ir.iph nun (.'nrrpKpniiil'nf i IK WVAMCIT, thi.4 .lay. "The (t.i ii-A farmer i« not petfin:: a 'nir final from (lip Civennnent under the ■."iHintwil prii-o plan.' , paid Mr. \- •' Sinclair, manager nf ihe Te Awn■until i o operative Dairy Company, Limit™ , , it dm annual meeting nf the '■•■mp'iny to-day. ".No iiiorp impnrtinl tribunal was ever >■••< up "".in tin. Cu.irnnteeil Price A'lvi«i.ry Committee of Ir»:js," he con linilprl. "If ron*i«ted of e.pial representation from the; fioverninent and I lip industry, and was presided over liy Sir Fninci* Fnizcr. The roniniittee's recomnifiid.'il ionn were unnnlmnut,, and ii ki'.iw. lnju*tice wnfl inflicted upon tlio indii-try when the (in\ernnient nrliitrarily reduced the prices recoin innndi'il.' .

Mr. Sinclair added that the dairy former had no incentive to-day to develop his farm nnd increase, h'w production with the help of outfiide labour. Thfro was unfortunately nn increasing tendency on his part to restrict his operations to nn extent which could be bundled by hlmoolf and his family. Thi« wnn bad for the industry, and equally had for the country which could fnce its overmen** commitments durlm? tlie next few years duly by a considerable increase in gxpnrta. Uncertainty About Deficits. The dnlrylnji industry was still completely in tiie dnik. continued Mr, Sin'ln •;•, concerning the manner in which ilfucit.t nivnilnjr In the dairy Industry account would tlmilly be dealt with, as no direct statement hnd ever been made nn thU subject by any member of the Onv«rnm«nt. "If it be the intention of the Government,'-' he laid, "that these deficits should • f.inri n* n first charge against any sur|>lii*c« in subsequent year«, the guaranteed price is a misnomer, because it then iiecomen merely nil equalisation scheme returning the farmers the actual market realisations over a period of years, and itn only advantage U that it stabilises the farmer's gross income from year to year without making adequate provision for his increased costs. It is the duty of the Government to make & clear pronouncement on this matter." The directors of tho company, said the chairman, Mr. E. H. Rhr.des, hud consistently taken isp tho attitude that the price recommended by "ihc 1938 advisory committee should be paid to the Indus-, try, and this would, have enabled butter factorien to pav another Jd per Ib butterfnt over tho past season. " The industry Is Justified In asking for this price,'* ho snid, "and also for the ar!ditloiial costs which have fallen on the dairy farmer since the committee's report wns submitted. The Government hft-A promised to confer with representatives set up by the industry immediately the Hon. Wnlter Nash, Minister of Marketing, return* to New Zealand."

Question of a Vote. "Some farmers are a little panicky with regard to the guaranteed price, said Mr. Rhodos. "They realise that thla country Iβ in a dlillcult position today and they fear Unit the Government would be glud of any excuse to throw the scheme overboard and leave farmer* to tho mercy of overseas miliwitioiin, with no compensation for the great Increases which have occurred In cont* over the past threo years, largely no a- result of Government legmIfttlon. The dairy farmer should not be stampeded by fear* of this nature, bo«ni»<3 tho Government is well aware that such a proposal would make dairy farinlnst <*"• uneconomic that Inrgc minibers of dairy fanners would bo forced out of production, aml the position of the country would become worse thnii •vor." Mr. Rhodes expressed the opinion that it a straight-out vote were taken to-day anion;? dairy fanners on tho question: "Aro you in favour of the guaranteed price plan?" over 00 per cent would vote in favour, having no alternative with cost* at their present level. On the othnr hand, if the issue were placed before farmers in tho following manner: "Aro you satisfied that the price paid under tho guaranteed price plan represents the sum to which you are entitled under the Primary Products Marketing Act?" the majority, he believed, would be just ae great in the opposite , direction, and that was tho real issue before the dairy farmer to-day.