PRODUCERS DISCUSS PLAN

Evening Star, Issue 22327, 1 May 1936, Page 14

PRODUCERS DISCUSS PLAN

MINISTER ANSWERS QUESTIONS ON GUARANTEED PRICES MANY POINTS CLEARED [Per United Press Association.] WELLINGTON, April 30. When tlie conference of tho Dominion ward delegates of tho dairy industry was resumed to-day a series of questions and decisions framed after the conference yesterday was placed before the Minister of Finance (the Hon. W. Nash), who was present again, with the Minister of Agriculture (the Hon. W. Lee Martin). In the discussion that followed tho question Mr Nash said that if there was a deficit between the guaranteed price and the market price that would he the responsibility of tho Government, and there would ho no liability on the producer. If there was a surplus the Government would have to decide What was to bo clone with it. To the third question he said the produce of the farms would be the property of the producers until it was placed on board ship. That would apply to butter and cheese, but if bobby calves were taken over they might be taken at the farm. All that the Government was concerned about was to find the most economical way to handle the produce and then get the best possible return for it. The Government would own tho produce as soon as it was on board ship. In respect to the handling of the produce between the farm and the ship, he would ho glad to discuss that with tho Dairy Board to reach the best possible arrangement in the interests of the industry. In reply to the question about exchange on cheques, the Minister said ho hoped that payments would be made by Government cheques, which would bo free from local exchange. It was obvious that tho trading banks would lose some of their profits. He had discussed tho position with the banks, and they had expressed a willingness to cooperate. If there was any tendency on the part of the banks to take more from the producer than was their due, the Government would, by negotiation or other steps, if necessary, see that the banks did not get more than their share, Mr Nash said he could not alter the price basis of eight to 10 years. The price would not be a fancy price, but would be better than the prices that had been ruling for some time. The question of extra cost was a point that would have to be faced. He could not see that there would be any extra cost that would not have appeared even if the Government did not take over the marketing, and he did not think that any extra cost incurred during next year from improved wages or other causes would bo such as to occasion the industry any concern. If tho increase did remove the benefit tho Government would take steps to meet the situation.

The Minister said the Government would certainly advertise the produce. There was no intention of taking over pure-bred stock. With regard to dried milk, etc., he said the Government had discussed the position with the companies S manufacturing dairy by-pro-ducts, and it did not appear likely that it would take over the marketing of those products. With respect to the suppliers of those companies some arrangement would have to he made to see that they received an adequate return.

Mr Nash said that where private agreements had been made and advances received the Government would do its best to make arrangements to complete those agreements. The Government was not going to guarantee to indemnify any company, but if a dairy factory had entered into a legal contract the Government would have to see that it was carried out. He would not promise that all contracts would be carried out, but the Government would do all it could without interfering with its own marketing plans. The Minister said that the grading procedure was under consideration, but he could not give a definite basis to be adopted for various grades. In reply to the last question (ro limitation of production), Mr Nash said that in the first year, whatever the quantity of primary produce might be, the guaranteed price would be paid. During the next 12 or 18 months they would be finding out from Britain what quantity of cheese and other products she was prepared to take from New Zealand. Whether New Zealand would be able to get a bilateral agreement with Britain he did not know. The proposals the Government had in view were that Britain should give New Zealand a market as a Dominion. To the extent that Britain gave New Zealand an agreement New Zealand would utilise the credits built up in Britain—first, to pay interest on the debt which New Zealand owed Britain; and, secondly, by negotiation with Britain, to place at her disposal the balance of those credits for the export of products from Britain to New Zealand, to achieve, as far as possible, a balance of trade between the two countries.

Ho said that the Old Country would be given first call on everything it was prepared to take. The second call would be to other countries in the British Commonwealth, and, after that, any other country to which New Zealand had products for sale. It was necessary to make the nation the unit, and that was what was envisaged in the Bill. There would not be a shadow of restriction on production in this country as long as they could find a way to get the produce to those who needed it.

Mr Nash, in reply to a question as to what would be done with the money if there were a substantial balance at the end of the year, said that the Government had no idea of taking any surplus and putting it into the Consolidated Fund. He added that if the circumstances warranted it, next year other industries, such ns meat and wool, might be taken over from the marketing point of view. Mr Sinclair, a member of the Dairy Board, paid a tribute to Mr Nash for his diligence and sincerity, and suggested that the conference could assure the Government of the industry’s assistance. He felt strongly inclined to urge the conference Hot to pass any resolution that might embarrass the Government in its efforts to place the industry on a solid foundation. Mr Nash said that if J )e might be permitted to suggest it, Mr Sinclair's observations might be expressed bv saying that, while the conference did not approve of all the clauses of the Bill now before the House, it would pledge itself to the Government to do everything possible to enable the Government to carry its policy into effect when it became the law of the land. Another delegate suggested that as the Minister know the spirit of the conference towards the Government’s efforts to assist the industry, the conference should leave it at that. This course was agreed to. no resolution relating to the Bill being put to the meeting. i