DAIRY PRICES

Press, Volume LXXIV, Issue 22464, 27 July 1938, Page 5

DAIRY PRICES

MERITS OF TWO SCHEMES DISCUSSED VIEWS OF MR M’COMBS [From Our Parliamentary Reporter.] WELLINGTON, July 26. “I have said before, and I say again that I would rather see a Budget stated in terms of human happiness than in terms that would please a financial magnate,” said Mr T, H. McCombs (Government, Lyttelton) during the financial debate to-day. ‘‘That is what Mr Nash’s Budget does.” Mr McCombs said he could not understand the reference of the Leader of the Opposition to signs of reduced production. Looking at the figures for both primary and secondary production in the Dominion for the period covered by the Budget, there was no indication of a decline. More dairy produce had been shipped, a larger number of sheep had been clipped, and the production of secondary industry had been a record. It had been claimed, said Mr McCombs, that the dairy farmer had received less for his production under the guaranteed prices scheme than he would have under free marketing. Even allowing the £113,000 surplus left in the account, the farmer was better off by £IOO,OOO, becaus* the scheme had saved him £219,000 in the expenses of marketing. ■ The National Party was very anxious to win back the farming vote, and to this end had adopted the compensated prices scheme. The Leader of the Opposition said that there was no mystery about the scheme. Perhaps there was not to him; but the general public would like to know what the scheme meant. Prices Compared A leading advocate of the scheme was Colonel Closey, who first propounded a mathematical scheme. ■Under this scheme the price to the farmers in 1935 would have been 9Jd per lb, against an actual payout of lOd, and last year it would have returned Hid, instead of nearly 13d under guaranteed prices. The original idea was not found to bo cutting much ice with farmers, and this year Colonel Closey had a new scheme, which was designed to reduce costs. This was to be accomplished by reducing taxation, the unemployment levy, railways, and housing expenditure, and reducing tariffs by £11,000,000. The method was to lower taxes. That would at once cut pensions, and civil service and other wages. The only effect could be to lower wages and pensions.

Mr McCombs charged the Opposition with speaking with a number of different voices on compensated prices. The Leader of the Opposition in February. 1937, warned farmers against the scheme. In March this year, however, he said that for years he had supported the principle of compensated prices. The present Government, said Mr McCombs, had done more for defence than any Government since the war, and had made conditions- of service for territorials more attractive. It had encouraged recruiting. The British Government had offered the previous administration £1550 for every pilot delivered in England with 11 months’ training; but the offer had been turned down. The Labour Government had accepted the offer, not only to assist the British Government; but to ensure better training for men for the New Zealand Air Force. The Government, he said, was doing far more for Imperial defence than the previous Government.