PRICES FOR N.Z. EXPORTS

Press, Volume LXXXIV, Issue 25608, 24 September 1948, Page 6

PRICES FOR N.Z. EXPORTS

ADJUSTMENT LIMIT QUESTIONED

OPINIONS OF MR HALE “The Press” Special Service AUCKLAND, September 23. The adjustment made to bring the New Zealand £ to parity with sterling would bring down farmers’ returns on products not covered by the stabilisation agreement, such as wool and calfskins, and realisations going to the credit of the stabilisation accounts would be considerably reduced, said Mr W. E. Hale, at the annual meeting of the Auckland Farmers’ Freezing Company, to-day. It was conceivable that if wages and costs of imported goods continued to rise, necessitating still higher prices for producers, the demands to be made on the stabilisation account credit balances of £25,550,000 (meat) and £12.585,000 (butter) might quickly dissipate them. If it became necessary for the Dairy Commission to pay prices in excess of dairy produce realisations from the United Kingdom and the Government a price in excess for meat, there seemed a good case for an increase in prices from the United Kingdom, even beyond the 7J per cent, a year. "Now we are at parity with sterling, why should there be a 7£ per cent. qualification on our exports, with no similar limitation on import prices?” asked Mr Hale. “If prices of imported goods are not reasonable, then we will have to demand world parity for our meat and dairy produce.” He added that the Government had altered the exchange rate to stabilise costs. The onus was therefore on the Government to see that the price of imported goods and locally-made goods was reduced in line with the exchange adjustment, and that wages generally were maintained at present levels. Producers would watch any move for wage increases with the greatest concern.