'COSTLY EXPERIMENT'

Evening Post, Volume CXXVI, Issue 74, 24 September 1938, Page 20

'COSTLY EXPERIMENT'

GUARANTEED PRICES

Dealing with the subject of guaranteed prices, Mr. Hamilton said that it was -the commandeer at a fixed price to which exception was taken. The Government claimed that the system gave justice and stability to the dairying industry, but the National Party said that it had brought neither. Mr. Hamilton quoted figures to show how the farmer actually fared in cash paid during the two years the system has operated. He stated it could be said that for the full two years ended July 31 last, the farmers received at least £500,000 less than their produce actually brought in the world!s markets. On top of that the farmers had had to carry all the added costs burden, estimated at millions of pounds, that the Government had placed on the in- j dustry. INSULATION THEORY. It was because of this that the committee set up by the Government to recommend what the price this year j should be recommended a rise of 2d per Ib. The dairy farmers, therefore, had had a very costly experiment forced upon them. The further fact that, for this year, the Minister of Finance refused to grant the price recommended by his own committee proved that the Minister was not prepared to stand up to his much-vaunted insulation theory,but, instead, he related the guaranteed price to-the market price, and tut the committee's, price down by £1,289^000 less^ttwii the price recommended by his committee. Why did the committee recommend a rise of 2d in the price, Mr. Hamilton asked. It was for the purpose of compensating the dairy farmer for the extra costs, placed on the industry. There; Was'also,the problem of sales of butter cheese, on the local market. The Ministerv'of Finance found himself betweeh.two fires—one his desire to give the .farmers a satisfactory price and the other to keep the price of butter low on the local market. The National Party would abolish the commandeer, and give back to the dairy farmers the ownership of their own produce, and steps would be taken to bring farmers' costs into correct relation with prices. The industry would be consulted as to finance and marketing; stability would be given; by granting a guaranteed minimum price for the season, and, if desired, the National Party would cooperate and assist.in marketing.