FERTILISER PRICES Opposition To Decontrol

Press, Volume XCVII, Issue 28541, 21 March 1958, Page 10

FERTILISER PRICES Opposition To Decontrol

(New Zealand Press Association) AUCKLAND. March 20. The removal of price controls on fertiliser was unanimously opposed by the Auckland provincial executive of the Federated Farmers yesterday. The matter will be discussed at the May meeting of the Dominion council, whose decision will be conveyed to the Minister of Industries and Commerce, Mr‘Holloway. In a letter to the federation, Mr Holloway said he received renewed applications from representatives of the fertiliser industry in -New Zealand for the removal of price controls and would welcome comment from the federation before making a decision. The Minister said it. has been suggested to him that, on completion of the new fertiliser works at Morrinsville and Tauranga, there would be a true element of competition in the industry which would ensure that prices did not reach an unreasonable level.

Mr A. F. Cates said he thought it wise to retain price control. It had to be remembered, he said, that a ceiling price was fixed and there was nothing to prevent selling below that price. If prices rose, the farmers’ costs of production would be forced up. “Detrimental” Subsidy

Mr A. D. Dibley said the yearly output of the three works in the Auckland area was 500,000 tons. If prices were not controlled, they could lift theirs by Is a ton and subsidise the Morrinsville works to the extent of 2s a ton to the detriment of the Bay of Plenty co-operative concern. He said all farmers’ co-operative works could be adversely affected. Commenting to-night on the executive decision. Sir Williajn Goodfellow said no case now existed for price control of fertiliser.

Both the Morrinsville and Tauranga plants would come into production soon, he said and they would provide the Auckland province with a manufacturing capacity at least 50 per cent, in excess of its requirements. Consequently, competition would become very keen and the retention of price control would be unwarranted.

Last September, he said, the then Prime Minister (Mr Holyoake) had promised the removal of price controls on fertiliser as soon as the new Morrinsville works commenced operations.