GUARANTEED PRICE

Dominion, Volume 31, Issue 190, 10 May 1938, Page 12

GUARANTEED PRICE

“Farmers Hoodwinked And Hamstrung” GOVERNMENT CRITICISED Costs Of Production Pushed Up A claim by the Prime Minister, Rt. Hon. M. J. Savage, that the Labour Government had given security and stability to the farmers by introducing guaranteed prices, and that it meant a more substantial income to them was challenged by the Leader of the Opposition, Hon. Adam Hamilton, in a political address last night at Wellington. “The statement snows the Pi;ime Minister to be absolutely ignorant of the dairying industry. It sounds very well—and that is what it was meant, for—but it is absolutely incorrect,” said Mr. Hamilton. “The guaranteed price brought neither security nor stability to the dairying industry, and the guaranteed price does not mean a more substantial income to the dairyfarmer. ' “The Prime Minister says the farmers of New Zealand are in a better position to-day than they have ever been previously in the history of the country. It is obvious that Mr. Savage has not spent much time in the country districts during the last 2| years. The farmers have been hoodwinked and hamstrung by this Government, and they do not hesitate to say so. Rising Costs. “The dairy-farmers have their socalled guaranteed price. The price is fixed for a whole season in advance, but has any attempt been made to fix costs? The farmers know the answer to that. They know/that, since 1935 their costs of production have risen out of all recognition, and they know, too, that whereas good prices have been made possible only by market conditions overseas, increased costs have been brought about as a direct result of the Government’s policy. “The farmer cannot hope to pay competitive rates in wages, and he is in a less hopeful position to-day than he was in three years ago, when rising markets with much lower costs, were permitting him to make ’a speedy recovery. “What, then, is the correct position? Take the farmers supplying cheese factories. Last season they got £12.000 less for their cheese than the Government, got for it in London; £12.000 less than the market, price. And they had to bear as an addition all the extra costs loaded on to the industry, and the higher prices for their requirements. "Last year, those supplying butter factories got about an extra id. a lb. over London price. Under no stretch of imagination would this be anything like sufficient to meet the added costs loaded on the butter producers, and the Prime Minister lias the audacity to say that the guaranteed price means a more substantial income! Remember, also, that last year’s dairy account stood on its own. And there is still a debit of £338,000 standing against that account. Less Than Market Price. "Now let us consider the present season. It is correct to say that the dairy-farmers under this year’s guaranteed price are receiving substantially less than the market price of their butter. A reasonable estimate of the market price above the guaranteed price would be about lid. a lb. butterfat, or, an estimated surplus for this year of over £1,850,000, for butter exported. That is what the Prime Minister calls security and stability. Note that he did not use the word ‘justice’ as applied to the guaranteed price. Note, also, that the dairy-farmers have no legal claim to the surplus. They are in Hie hands of the Minister, ami at his mercy. What a position to be in! No doubt, as this is election year, Hie Government will make a further payment later on, but the farmers have no legal claim to a penny of it.