GUARANTEED PRICES

Evening Post, Volume CXIX, Issue 128, 1 June 1935, Page 11

GUARANTEED PRICES

WHICH 3IR. POLSON?

MR. WALTER NASH'S

QUESTION

Commenting on the report of the speech by Mr. W. J. Poison, M.P., published in yesterday's "Evening Post," Mr. Walter Nash, M.P., president of the New Zealand Labour Parly, in a statement to the "Post," asked which Mr. Poison the farmers and the general public are to believe? "Speaking at Ashburton," said Mr. Nash, "Mr. Poison is reported to have advised the farmers not to take note of the glittering bait of guaranteed prices—and followed this up by describing the policy of guaranteed prices as a chimera and as a myth." "Speaking in the House of Representatives on October 30 last, Mr. Polson said that ,of the thirty-four thousand farmers (who depend practically entirely on the'dairy industry (, thiry thousand are in difficulties or are losing money at the present time.' . ■ . He went on to say: 'I have suggested that a repayable advance be made tothese men up to what is ascertained to be the payable point at which bu'tterfat can be produced. Assuming that butterfat can be produced at lOd per pound—and the present price is 7d per pound—my proposal is that these farmers should receive a repayable advance of 3d per pound. It can be done through the factories. The whole thing will be under control, for the Government, under these proposals, will be in such a position as to j be able to control the industry.' "Later Mr. Poison said: 'It has been pointed out that what I am saying is in the nature of a subsidy. Well, I do not care what it is called. It is a repayable advance. If anyone likes to call it a subsidy, I do not mind.' " "RESTRAINED INFLATION." Pointing out how the lOd per pound was to be paid, said Mr. Nash, Mr. Poison said: "I am advocating that an advance should be given to the dairy industry through the conservative and restrained issues of Reserve Bank of New Zealand notest" "Mr. Poison at Ashburton," said Mr. Nash, "lauded the Government for its proposals to ease the load of debt carried by the dairy farmer. In October last he advocated the accumulation and extension of this load of debt by compelling the farmer to repay all advances made by him over the price realised—even though that price did not, as Mr. Poison pointed out, meet the cost of production. During Mr. Poison's speech in Parliament Mr. W. E. Barnard, M.P., asked: 'When would the dairy farmer pay back the loan?' Mr. Poison replied: 'When the price of butterfat rises above lOd per pound or whatever price is fixed. I am not particular whether it is called a loan or an advance or a subsidy.' "Mr. Poison's proposal in Parliament," said Mr. Nash, "was a guaranteed price of lOd per pound for butterfat. He now calls guaranteed prices 'chimeras and myths.' Which Mr. Polson does Mr. Poison desire the dairy farmers to follow? "Mr. Poison affirms (1) that London balances have fallen; (2) that exports have increased because of the fixing of the rate of exchange at 25 per cent., above par; (3>- that retail prices have fallen because imports cost 25 per cent, more; (4) that the exchange policy has increased the spending power of the New Zealand public. All these statements in their obvious absurdities can be left for attention later. At the moment the farmers are looking af Mr. Poison; a little later they may see through him as the man to whom Thomas Carlyle referred when he said, 'He is a Columbus, minded to sail to the indistinct country of Nowhere, to the indistinct country of Whitherward. . . .He will infallibly arrive at that same country of Nowhere; his indistinct Whitherward will be a Thitherward! In the Ocean Abysses and Locker of Davy Jones, there certainly do he and his ship's company, and all their cargo and navigatings at last find lodgment.'"