THE GUARANTEED PRICE

Press, Volume LXXV, Issue 22768, 21 July 1939, Page 15

THE GUARANTEED PRICE

tq- .Tax sextos or tbs tuH. Sir,—-I read in ‘?The Press” this morning a - remarkable statement by Mr Mulholland that the dairy farmers will welcome the return of the marketing -of the industry’s produce. Now does Mr Mulholland think that the dairy farmers have forgotten what they had to go through .under the old system? I don’t think so. and it is a great pity Mr Mulholland did not pay as much attention to the dairy farmers troubles as he is to-day. when the industry is under a more stabilised control, as when the former Government Dairy Board and speculators had con-

trol. He seems to wish to bring the dairy farmer back to the same level under this Government as they were in the past, and it is apparent that he is using this to attain his political object. The cancellation of the guaranteed price to the farmers would mean financial disaster, and the wheatgrowers would receive the same fate, as they are under the guaranteed price, and this branch of the primary industry will remember how it was sidestepped by the last Government when Mr Mulholland was muddling about with wheat pools and could not get the desired benefit for the farmers. But the present Government went into this business in the interest of the wheatgrower and. organised the whole of the industry. I will put a clearcut issue to Mr Mulholland. He was elected president of the Farmers’ Union at a conference in Wellington by a few farmers. I would ask him to resign so that farmers can elect a new president by ballot, and the issue will be guaranteed price against free market for the farmers. I hope he accepts this challenge, and this will decide .the issue.—Yours, etc., W. G. SHACKEL. Springston, July 17. 1939.

TO THE EDITOR 07 TBS PRESS. Sir. —It is stupid of the Prime Minister to raise the issue of a vote to be taken at the present time as to whether the dairy farmers favour the guaranteed price of dairy products without taking other aspects of the position into consideration. Is the price sufficient, with our present depreciated currency, to meet the competition of the employment fund and public works for labour and the further additional high costs that have developed? Can the dairy farmers maintain their equity, increase production, and carry out general progressive development? Production returns speak otherwise. Apparently, all things considered, the pay-out on but-ter-fat might work out at slighly more than Id per lb better than the market value, but paid in New Zealand money. Half a loaf is better than no bread, no matter how dismally the Government has failed to honour its promises. The present method is favoured by dairy fanners for the time being. It might be as well to remind Mr Savage that-dairy farmers have had a guaranteed price in the past if they cared to take advantage of it. Before the adoption of Control Board monopoly the English agent eagerly bought up the dairy factories’ output. At the commencement of the season, dairymen knew where they stood and were paid in good English value of money, which never failed, without all the added costs we have to-day. Also, large dairying areas were developed on the proceeds.—Yours, etc.. H. BUSS. Heathcote. July 20. 1939.

TO THE Kl>TrOß OI THJ PEES 8. Sir, —The dairy fanners will do well io consider before they throw over the guaranteed price system. The guaranteed price is a compensating price and it is a subsidy in its best managed form. At this stage the dairy farmers are in the soundest strategic position they have ever achieved. Time is necessary to regain the ground lost during the 'depression. They should be among the first to accept with understanding and restraint the Government's request to mark time over the price question for a seasqn, also to acknowledge the Government’s difficult “exchange finance” position, forced by an unjust run on the sterling funds. Every effort should be made by them to improve tbeir position and the national position bv increasing their : herds. It must -be realised that the : Government’s task is not only to give them a fair price, but also to maintain other prices, so that the dairy produce price will remain profitable. . The dairy farmer cannot be given an increase of price each year. If that were attempted the £N.Z. would soon be devalued tons sterling and cpntinue goipg.down jtrom that For, prices toremain profitable all prices must be stabilised. That is a fact that cannot-be evaded. A growing nation must hade an Increasing volume of money in circulation, but not Increasing commodity prices. The dairy farmers and the Government, too, will know the position better in another year. Stay-on orders should be enforced where the farmer needs and desires. —Yours, etc., ■ KAYE HOBJuly 19, 1939.