GUARANTEED PRICE

Dominion, Volume 30, Issue 173, 19 April 1937, Page 2

GUARANTEED PRICE

Dairy Industry Account

POLICY FOR NEXT SEASON

The scheme at present operating in New Zealand whereby the 'dairy-farm-ers are paid a guaranteed price for their produce is explained by the Minister of Marketing, Hon. W. Nash, who is at present in England, in an article he has contributed to the “New Outlook.” published in London. “New Zealand's key industries are agricultural, with the United Kingdom as the main market,” says Mr. Nash. “It therefore needs little elaboration to show that the price fluctuations of the United Kingdom market, and the low prices of the depression years, have had a devastating effect on New Zealand’s economy and on the life of the farming population. This, in part, explains the I’rim.ary Products Marketing Act—a major policy measure. This Act provided for the payment of a guaranteed price to dairy-farmers, the price to remain stable for the whole year, the setting-up of a Primary Products Marketing Department to handle the export and sale primarily of dairy produce, and the assumption of ownership by the Government of all dairy produce intended for export.” After discussing the procedure adopted in fixing the price, and the method it is proposed to adopt in determining next season’s price, Mr. Nash says: “Payments for the purchase of the dairy produce by the Government are provided by drafts on the dairy industry account at the State-owned Reserve -Bank. Proceeds of sales are'eredlted.to this account, the procedure being for debits at the end of any one season to remain as an overdraft. If there is a credit in the account for the year ending July 31, 1935, or any subsequent year, this would be left in the account as a set-off against possible future debts.”

The article, which is headed “Labour Rule in New Zealand,” also deals with various other phases of the Government’s policy and the legislation it has passed since assuming office.