BIG DISPARITY

Auckland Star, Volume LXXIV, Issue 290, 7 December 1943, Page 2

BIG DISPARITY

LEND-LEASE PRICES

N.Z. FARMERS SEVERELY HIT

Further support for the contention, which is being increasingly made in business, farming and commercial circles, that New Zealand appears to be heavily penalised in the exchange of goeds with the United States under Lend-Lease has come from Mr. J. T. Martin, chairman of directors of the stock and station firm of Abraham and Williams, Ltd. Addressing shareholders recently, Mr. Martin said that, while not undervaluing the security afforded farmers of a guaranteed price under war conditions, and the desire to help Britain in her gigantic struggle, he could net escape the conviction, which he knew was shared by many, that insufficient care had been taken by those responsible for the negotiations to protect farmers against increasing costs, labour shortage and many disabilities. "There appears to be little or no resiliency in the agreements, and farmers are unable to secure increases in prices to which, under the circumstances, they are justly entitled," added Mr. Martin. "We buy American goods in dollars, which at present ruling exchange cost us 6/1; we sell to U.S.A. our products at the same price as we sell to Great Britain, and, with very little modification, at the same prices guaranteed and fixed at the commencement of the war. Not only are our prices in the circumstances extremely low, but we are buying American goods under Lend-Lease conditions at exceptionally high prices. , "The following are the f.o.b. prices at which we sell some of our products to U.S.A. and the f.o.b. prices for the same products quoted by the U.S.A. for shipment from their ports:— N.Z. Price U.S.A. Price Wool ■'.*.:" 14d per lb 27.1 d per lb Lamb ... Od per lb 19.4 d per lb Pork ... 7d per lb 13.5 d per lb Butter . . 16.5 d per lb 34.5 d per lb Cheese . . 8.5 d per lb 20d per lb "We seem to be mixing up sentiment with business, and instead of negotiating on s,ound business lines derive some measure of satisfaction from selling our goods under market value," Mr. Martin said. "These comments will not, I hope, obscure the fact that we are all devoutly thankful that, with very few exceptions, all we have produced has been shipped to its destination, that Britain still commands the great ocean routes, and that we have been called upon to make so few sacrifices."