FRUIT INDUSTRY.

Evening Post, Volume CXVII, Issue 114, 16 May 1934, Page 16

FRUIT INDUSTRY.

SPOON-FEEDING DENIAL

EXCHANGE RATE PLAYS PART

(Special to the "Evening Post.")

NELSON, May 15,

The big part played by the Governlnent guarantee in the development of tlfo fruit export industry was stressed by Mr. K. J. Holyoake, M.P. for Motueka, when speaking at a function in connection with the shipping of the millionth case of fruit from Nelson for the season. To the grower, he pointed out, the guarantee gave security and adequate financial backing, and he quoted figures showing the cost of the guarantee to the Government in the past ten years.

Mr. Holyoake pointed out that in 1926 the fruit industry had a bad season in regard to prices'and other difficulties, such as the general strike at Home. In that year the industry leaned on the Government purse to the extent of & 82,994. However, from 1922 to 1932, the total cost to. the Government was £137,416, an average of £13,000 per annum, and so those who thought that the industry was spoon-fed would have further thought on the matter. Excluding 1926, the average cost for the other nine years of the ten was £5420 per annum—a mere bagatelle when the value of the industry was considered. Continuing, the speaker made reference to the growers' voluntary tax of lid per case, which would this year produce £10,000 as a first charge against tbe guarantee. That amount was only a little less than the average paid out on the whole guarantee over the past ten years. "And so," he said, "don't let anyone tell you that • the fruit industiy is spoon-fed; it is not." In dealing with the benefit to the industry resulting from the high exchange rate, Mr. Holyoako said: "I think all fruit growers will realise the value of the- high exchange rate to the well-being of the fruit industry." He stated that with the exchange at par the grower at present would receive a return of M per case. At 10 per cent., as it was before the recent increase, he would receive 8.55 d per case, but with th rate at 25 per cent., as at present, the return was Is 2.92 d. "That shows what the exchange rate means to the industry. It is a temporary, measure to rseet the. crisis and tide over these difficult years."