A FALLACY

Evening Post, Volume CXVI, Issue 90, 13 October 1933, Page 5

A FALLACY

GUARANTEED PRICES •

NEW ZEALAND'S POSITION

! The contention that the' Labour Party* guaranteed price proposals wers impossible in practice owing to the fact that New Zealand depended for her, prosperity on the price she received for; her products on overseas markets,, was made' by the Minister of Lands (thft Hon. E. A. Bansom) in the House of. Bepresentatives last night. Mr. Ransom said that the Labour, Party was belittling the efforts mads by the New Zealand delegates at th« World Economic and Monetary' Confer* ence, but the primary producers deeply) appreciated what had been done for them. There were now possibilities of new markets, including the United States of America; The present was not a time for spectacular promises which could not be fulfilled. Several of the countries which traded with New Zealand had heavy balances in their favour, and everything should be dona to bring about a more even exchange of commodities. Possibilities in this direction were being explored, and it had been of advantage to New^ Zealand to have her delegates conferring with thosa of other countries. The Leader of the Opposition had declared -that wages should be raised in order that purchasing power could be increased, but it would be fallacious to raise wages unless there was an improvement in the pric« of the commodities which were produced per medium of those wages. The Leader of the Opposition had also stated that the aggregate price of goods in New; Zealand could not be greater' than th« aggregate purchasing power. This was correct. There could be no increase ia the value of primary products in New Zealand until the purchasing power was available to'purchase her commodities. Unfortunately, high wages in the Dominion would not solve the problem* and they had to wait for an increase m. the purchasing power overseas. Because of this fact, the Labour Party's guaranteed price proposals fell to ths ground. ' ... Mr. W. E. Parry (Labour, Auckland Central): Goodness gracious! Mr. Bansom: Probably we will not hear anything more about guaranteed prices. .„ ■ Labour members! Oh, yes you will. THE OAF TO BE BRIDGED. Mr. Eansom said that 40 per cent, oi, New Zealand's products were exported^ and they had to wait for an improveiment in prices in the United Kingdom, which was the Dominion's principal market. The Prime Minister of Canada had pointed out that Canada could not adopt the American plan, because she was a debtor country, and that should be sufficient answer as far as New Zealand was concerned. The Government would very much like to raise wages, but it could not do so with the national income showing a decrease of £20,000,000 below normal. Here was the gap which1 the Government was at* tempting to bridge. Mr. Eansom said that there had besat a large 'increase in the volume of primary products entering the United Kingdom during "the last few years, and it was essential that New Zealand should find markets elsewhere. He had been informed that there were other uses to .which butterfat could be put^ but in other forms it would not fetch! such a high price. By a process H could be made into a product resembling ghee (Indian clarified buffalo-milte butter), and in this form it would have a ready sale in India. Australia had been successful in increasing her Eastern markets, but New Zealand's exports to the East had fallen. If New Zealand made efforts to increase her sales in. the East she could beat Australia, as the Dominion's products were superior. . t