WARNING OF DIFFICULTIES

Press, Volume CVI, Issue 31154, 2 September 1966, Page 1

WARNING OF DIFFICULTIES

F ruitgrowers Seek Subsidy

(New Zealand Press Association)

WELLINGTON, September 1.

A warning that unless financial change was in sight the board and the industry would sink into a precarious condition was sounded by Mr A. D. Thomson, a Government member of the Apple and Pear Marketing Board, at the 50th conference of the Fruitgrowers’ Federation today.

“T h e board has shown reasonable profit in only two years of the last eight years and there is nearly nothing left of the £1.5 million accumulated in 1958.

“The only saving grace of the industry is some form of subsidy,” Mr Thomson said. Mr Thomson was urging support for a motion put to the meeting by Mr V. Stevenson, of Otago, calling for the payment of growers to be linked with the cost of the product and the market realisation. “It is a sound economic principle,” he said, “that in the absence of a subsidy no primary industry can pay out more than it gets from the market.” He referred to the excellent fruit marketing year in 1965 and said “this year the whole thing has turned upside down. The European market has collapsed and losses are quite staggering.” Mr Thomson warned that if nothing were done this year the board would continue on the same path, “and, even if we hold our own, we will still be heavily in debit.” Many growers, including the president of the federation (Mr T. F. A. Archer) spoke against the motion, which was subsequently lost.

Mr Archer said when people called for a cut in costs they implied that the growers had to take less. They were not prepared to do this.

The chairman of- the Apple and Pear Board, Mr K. B. Longmore, said the solution to the present financial problem was “to go out and sell like blazes.” Mr A. E. Scott, of Nelson, said it appeared that Mr

Thomson had very little faith in the industry. “A lot of us have courage to carry on, and the board should think long and hard before requesting a subsidy.”