GUARANTEED PRICES

Dominion, Volume 28, Issue 284, 28 August 1935, Page 11

GUARANTEED PRICES

Illusory and Uneconomic

SHE EPOWNER’S CRITICISM

Guaranteed prices for produce us a means of bridging the gap between costs and prices fox - the farmer were criticised by the president of the New Zealand Slieepowners and Farmers’ Federation, Mr. 11. D. Aeland, of Christchurch, at the annual conference of the federation in AVellington yesterday. Mr. Aeland pointed out that the enormous cost of such a system would, if attempted, necessarily have to be a charge on all other classes in the community except the farmer, who, speaking generally, was no more than able to make both ends meet at the end of his year, and in thousands of cases was at the present time even unable to do that.

"If borrowing is resorted to,” said Mr. Aeland, "then I would remind those responsible for the suggestion that no individual or country has yet been able to borrow its way out of debt, while if the alternative of further- depreciation of New Zealand currency is followed, then to the extent to which this is done, so much greater will be the disparity to be made up between the guaranteed price in New Zealand and the lower parity price received on our world’s market for tho exported product. ‘Trice fixing has been proved in other countries to be illusory, uneconomic and impracticable, and lias resulted in enormous loss in those countries who, like ourselves, have to meet competition from other producing countries on the world's markets. The past experience with respect to Canadian wheat, Brazilian coffee, rubber and othex - products has already provided proof of this. AVe cannot ignore world price fluctuations without incurring heavy debt to meet the increased difference between costs of production, which in the light of past experience must: follow any guaranteed increase in internal price levels above those received for otii - exports on our outside markets.”