THE GUARANTEED PRICE

Dominion, Volume 32, Issue 234, 1 July 1939, Page 10

THE GUARANTEED PRICE

There can be no question that the Government has committed a breach of its undertakings in respect of the guaranteed price promised dairy-farmers. An important factor in the fixing of the price season by season was that any increase in farming costs must be taken into account. Dairy-farmers were to be compensated for these increases. The Minister of Marketing has admittedly departed from this undertaking laid down in the formula for price-fixing. In asking dairy-farmers this year to accept last year’s guaranteed price,. regardless of the increased costs, he has, in fact, admitted the inability of the Government to meet its obligations in the matter and, incidentally, also has acknowledged the breakdown of any equity 'in the scheme. ;

It may have passed from thd memory of the general public; but not from that of dairy-farmers, that Mr. Nash refused last year to pay the price recommended by his own price advisory committee of experts. This committee, after the most complete investigation ever conducted in connexion with the dairying industry, unanimously agreed that the price for the 1938-39 season should be increased by. 2.37 d. a pound butterfat. An exhaustive analysis of the whole of the factors governing dairy-farming economy accompanied this recommendation, including a complete and detailed schedule covering the standard of efficiency• requisite to ensure a fair average price to dairyfarmers for their butterfat. These carefully-compiled working statistics, prepared by a specially qualified committee of the Government’s own appointing, were arbitrarily set aside by the Minister because they did not fit in with his own personal views, and the increase in price was fixed at l|d. a pound butterfat. The outcome was that the dairy-farmers received a lower price for the 1938-39 season than the Government’s own formula promised them; and, worse still, the Minister.of Marketing wants them to accept this same reduced price for 1939-40, regardless of the fact that farming and living costs have still further increased.'

It is not surprising in the circumstances that dairy-farmers throughout the Dominion are ’making protest, and even suggesting the non-payment of taxes, unless the Government carries out its original pledges and sticks to the price-fixing formula laid down in its own legislation and repeated over and over again in and out of Parliament. The. only value at all in the guaranteed price to the dairy-farmer was the promise that it would not only protect him against market fluctuations, but also would ensure that he would.be safeguarded against rising internal costs. These undertakings are now being thrown overboard. Tn effect, the Government has admitted by its actions that the main principle of the guaranteed price scheme has been abandoned, and that the pledge to place the dairy-farmers on an equitable footing with other sections of the community has been dishonoured. It would seem that ijtoney can be found to carry out its Socialistic policy in other directions, but not to honour its promises to the dairyfarmers.