GUARANTEED PRICES

Evening Post, Volume CXXIV, Issue 60, 8 September 1937, Page 11

GUARANTEED PRICES

THE FARMER'S RETURN

MR, NASH EXPLAINS

BIG MEETING AT STRATFORD

(Special to the "Evening Post")

NEW PLYMOUTH, September 7.

Greeted with expectancy rather than an air of criticism, the Hon. W. Nash, Minister of Marketing, was given an excellent hearing when he addressed a meeting at Stratford today. Though the meeting did not express its views in any motion, little criticism was implied by the questions which, despite his privilege as a Cabinet Minister, Mr. Nash answered freely. At the same time the farmers present were not necessarily in accord with his views. As the meeting was the only one to be addressed on guaranteed prices before the opening of the session, unusual interest was taken in it. The gathering was actually the continuation of the annual meeting of the dairy federation, but other companies were invited to send representatives, and directors of fifty companies were present, forty being member-factories of the federation. Others interested in the subject were present, and altogether there was an attendance of about 700. Mr. Nash, who was accompanied by Mr. G. A. Duncan, Acting Director of Marketing, made a special trip to address the meeting, leaving Wellington at 7 ajn. and making only brief stops _on the way. He reached Stratford shortly after two, and after the meeting left immediately for Wellington. On the whole he had reason for satisfaction with his visit, for it was expected in. some quarters that he might have a hostile reception, whereas the tone of the meeting, even when it was not in agreement with the Minister, was friendly. AVERAGE OF £5 10s A WEEK. Prior to Mr. Nash's arrival the meeting agreed to ask for publication of the report of the advisory committee and of other information on which the Government had acted. Mr. Nash expressed a strong disinclination to adopt this course, because the committee did not fix the price, which was the responsibility of the Government alone. He stated, however, that he would publish the actual figures of farm costs used by the Government in calculating what, the return to the farmer should be. He was emphatic that the Government had done its best to give the dairy farmer as fair a share of the national income as possible. He estimated that the average farmer would receive £5 10s a week. He contended that though a farmer might work 70 hours a wedk, which he personally thought was a slight exaggeration, it was difficult to estimate how that compared with 40 hours worked by a clerk or a machinist. Mr. Nash would not be drawn into making any promise of compensation if factory costs rose above the figures allowed—2Jd for butter and 3Jd for cheese. If he did make such a promise, employees might go to the Arbitration Court and say that if the industry did have to pay the wages the union claimed it would receive more from the Government. Any statement either way by him might be construed as influencing the Court. He thought,, however, that an increased allowance for costs of .33d for butter and .37d for cheese over the actual Taranaki figures last year would be sufficient to cover the increase. If the costs did not increase, Taranaki cheese companies could pay out 16.3d on the new price. QUESTIONS ANSWERED. Answering questions, Mr. Nash said future surpluses would be used as a reserve for lean years, but the Government had not considered a small levy to build up such a reserve. He was asked if the cost of marketing had not increased, possibly swallowing'up, the reduced commission to the •import-' ers, and promised that all possible details would be given in his report to Parliament. Any deficit, he said, would remain as an overdraft against the Government until there was something .to meet it. Deficits would not be met from the Consolidated Fund.

Asked If the price would be maintained if London prices fell, he said the price would be measured in terms of the Act, and costs were one factor in determining the price. If costs were reduced —say interest rates—would it be fair to give all the benefits to the farmers? Surely he should have only his share. Asked what his view was of stock and land values rising, he said that if the advantage of the price was to be capitalised, all the work of the Government would come to nought. He did not know immediately how that could be overcome. A questioner: What proportion of the farmers will get £5 10s a week? Mr. Nash: Is there any farmer here who won't get that on last season's prices? There was no reply. Only 20 per cent, of the labour on farms was hired labour, he told another questioner. The Government would do its best to make labour available. Men who refused suitable work would not be given sustenance. There were men on sustenance who could not work.