MARKETING BY PRODUCERS

Press, Volume LXXXIX, Issue 27148, 18 September 1953, Page 10

MARKETING BY PRODUCERS

PARLIAMENT

Government Policy Defended SPEECH BY MR HOLYOAKE (New Zealand Press Association). WELLINGTON, September 17. A great deal of confusion- and uninformed thinking surroundecT'the question of producer control, and many partisan statements were being made, said the Minister of Agriculture (Mr K. J. Holyoake), when he spoke in the Budget debate in the House of Representatives tonight. The previous speaker, Mr R. M. Macfarlane (Opposition, Christchurch Central) had said that the people were very much concerned at the aim of the Government to bring about producer control without taking into account the interests of the consumers. The greatest warning that had been given came from the president of the National Party (Mr A. McKenzie) when he spoke recently of the dangers of producer control. Mr Holyoake said he could agree with Mr McKenzie when he said that producer control had not reduced prices and that the policy should be reviewed before the next election. He said that this policy would ’be reviewed, just as every other aspect of Government policy would be. By setting up producer control in suitable industries the Government .was carrying out its election promise, the Minister continued. If other sections of the community had a certain degree of stability, what was there against the farmer setting out to obtain the same? However, the Government was aware of the need for safeguards wherever monopoly or semi-monopoly could exist. Changes in 25 Years Some persons against producer control were basing their ideas on the position 25 years ago, when the farmer did not have a great amount of expenses, and could cope with the vagaries of the weather and fluctuations in the market. Today the farmer was a businessman. He could still deal with the vagaries of the weather, but he sought some reasonable assurance of stability against market fluctuations. Mr polyoake said that in a time of world inflation prices had increased everywhere. However, there had been smaller increases in price in this country, where products were under producer control. Meat, vegetables, and fish were not controlled, and yet these three products recorded the highest increases of all primary products. Mr M. Moohan (Opposition, Petone): What about potatoes at 2s 2d? Mr Holyoake said it was quite impracticable to control the price of new potatoes. If an attempt were made to control these prices, no new potatoes would come on to the market. Even at the fantastic price of 2s per lb the producer was losing money. Mr Moohan: Are you going to do anything about prices from 2s 2d to 2s 4d per lb? The Minister said he was definitely not going to suggest that an attempt be made to control the price of new potatoes. Practically every other section rff the community, particularly those who were vociferous in criticising producer control, had stability of income, continued Mr Holyoake. Surely the producer was entitled to have stability. Also, it was in the long-term interest of the consumer that the producer have stable prices. The farmer was not critical of others whose incomes were stable, and he could not see why the farmer should be criticised.