PAYING MAN WHO DOES THE WORK

Evening Star, Issue 22326, 30 April 1936, Page 5

PAYING MAN WHO DOES THE WORK

FINANCE MINISTER LAUNCHES DEBATE NR COATES ADVISES FARMERS TO STARD OFF [Fk'OK OdK PAKLIi.IIINT.ISX RIPOKTXK.] WELLINGTON, April 29. It •was not expected that the Minister of Finance, when describing the Primary Products Marketing Bill would given even a hint of the price to be ultimately fixed at which the Government will buy all the butter and cheese exported from . the Dominion after August 1, and it was Mr Coates, who followed the Minister in a highly critical speech, condemnatory of the whole scheme, who mentioned what he thought would be the figure. Mr Nash, in brief references to price fixing, declared that if the dairy farmer or other farmer produced a product necessary for the country’s balanced economy, it was the duty of the State to see that _he got a price reasonable for the service he rendered the community.' This was irrespective of the price obtained overseas. Thus the dairy farmer would be protected from the extraordinary fluctuations he had mentioned to the House through three decades, and there was, he declared, no other way of doing this effectively than by buying his product. The Government was proposing, so far as dairy and all other. products of the primary industries were concerned, .when the time was ripe and it had won the confidence of the persons producing these commodities, to pay a price for those commodities. They also would take steps to control the local market, either by purchase or by fixing the price. Too much of the wealth produced . in this and other countries went to the man who found the money, though he admitted that some of them did not always get it back again,. The Government was going to see that the larger proportion went to the individual who did the work. Price fixing would, he explained, cover the producer, the merchant, and the retailer. Mr Poison: You are encouraging the speculator by fixing a price. Mr Dickie: Nobody knows what the price isP Mr Coates: Does the Government know? Mr Nash: “It knows most things. Whatever it is, it will be fair and just to the farmer in relation to the other producers of the Dominion.” There would have to, be balanced economy between cheese and butter, otherwise one or the other would swamp the market and destroy the price level for both. The Government would consider the general standard of living in th® dairy industry in relation to the

general standard throughout the Dominion, which meant that the price fixed would have to take into account the total production of the Dominion as measured in the national income. The Government had a number of reports showing the costs of production of butter and cheese, which would be taken into account in fixing prices. Mr Bodkin: And taking into account interest on capital. The Minister: Yes; , land costs are part of the costs of production, but we will watch .that extra land values are not appropriated ? Mr Broadfoot: And watch women labour on farms?

The Finance Minister replied that that would be watched, and they would try to get the farmer a price which would enable his wife, to look after his home or, if she worked on the farm, to compensate her for her share of dairying work. It would be a price which, added the Minister, quoting from a clause- in the Bill, “ shall be such that any efficient iprodnoer engaged in the dairy industry under usual conditions and normal circumstances should be assured of a sufficient net return from his business to enable him to maintain himself and family in a reasonable state of comfort.” “What price is to be fixed? ” asked Mr. Coates, who characterised the Bill as complete piracy of the producers’ property, and suggested renaming it the ‘Primary Products Piracy .Bill.’ He had listened to the Minister, but had never heard him suggest one figure He would definitely say that the farmers were entitled to t&e value of their product, but how could it be stabilisation if the price was fixed from year to year. Mr Sullivan: You don’t object to the farmer getting a decent living? Mr Coates replied “ certainly not.” but he was going to give the farmer some advice. Mr Schramm: Which they won’t take. Mr Coates; They should have nothing at all to do with the Government proposals. I sincerely and earnestly advise the farmers not to become a party to this price fixing. Mr Lee: Loud laughter out on the farm. Mr Coates retorted with an amusing description of the interjector’s drawn face, for he was worried over the consequences of the ill-considered scheme. He repeated his advice to the_ farmer to take the world’s market price, but supposing the Government fixed it (he had heard it was somewhere about Is Id or Is IJd for butter), he would advise the farmer to say that he would not accept it. because the market price might be higher. The Prime Minister had said he would take off exchange, but he would reply. “ You arc up a tree and can’t get down.” If Is I£d was paid, and the realisations were a penny a pound less, it would mean that the country would have to find £1,750,000 which would come from the wages of the city worker and other farmers until such time as the price rose, and the loss was repaid from the marketing fund. So the farmer was guaranteed absolutely nothing at all.