farmers agree.

Auckland Star, Volume LXX, Issue 193, 17 August 1939, Page 6

farmers agree.

GUARANTEED PRICE.

QUESTION OF BASIS.

cont or pßODtrcnoic.

"Is the guaranteed price to be based on the cost of production irrespective of the overseas selling price ? Or is it to be based on the overseas selling price, irrespective of the cost of production?" asked the president, Captain Rushworth, during a discussion on the guaranteed price at the monthly meeting of the Auckland provincial executive of the New Zealand Farmers' Union yesterday.

The Government, he said, had to clarify this point, which seemed to him to be the crux of the matter, before they could expect the farmers to give an intelligent opinion upon it. There had recently been some controversy in the Press on this matter

When tne Primary Products Marketing Act was passed, Captain Rusliworth went on, it appeared to provide something in the nature of a charter of salvation for the farming industry. According to the Act, the fixing of the actual amount of the guaranteed price was to be based upon the following considerations: —(a) The necessity in the public interest of maintaining the stability and efficiency of the dairy industry; (b) the cost involved in the efficient production of dairy produce; (c) the general standard of living of persons engaged in the dairy industry in comparison with the standard of living throughout Xew Zealand; (d) the estimated cost to the Department of marketing the dairy produce concerned, and also the cost of the general administration of this Act; (e) any other matters deemed to be relevant.

He himself, like many others, had assumed that nothing could be admitted under (e) that conflicted with the first four provisions. H© had taken (d) to refer to the cost of administering the scheme, and not to be concerned in any way with sterling receipts. It had appeared, however, since the original passing of the Act, that the question of coste, which had apparently been covered by clause (b) was in fact open to any modification the Minister thought fit to apply.

"The recovery of costs," said'. Captain Rushworth, "is a basic necessity in any industry, and the Government must make it quite clear whether this or sterling receipts is the determining factor."

After a lengthy discussion the following resolution was carried unanimously:—"The Auckland Provincial Executive of the Farmers' Union is strongly of the opinion that the principle of the guaranteed price should "be maintained if the basis of that price is the cost of production, irrespective of the selling price overseas, as provided in section 19, sub-section (4) of the Primary Products Marketing Act."