GUARANTEED PRICE

Greymouth Evening Star, 17 July 1939, Page 5

GUARANTEED PRICE

STATEMENT BY MR. SAVAGE

[PER PRESS ASSOCIATION.]

WELLINGTON, July 15

“It is plainly the duty of the Government,’ in view of certain election results and. statements 1 which are being made throughout the Dominion, to take steps to find out whether the dairy farmers actually want the guaranteed price or not,” said the Prime Minister (Mr. Savage) when enlarging in an, interview, last evening,- on his statement in the House of Representatives on this, subject. “We have made an honest effort to l position of the dairy farmers, Zealand, and if what we have ..one has not proved satisfactory to the farmers themselves, we will have seriously to consider what alternative steps should be taken.” Mr. Savage said that when the Labour Government came, into office it was faced, with the position as outlined in the report of the Dairy Industry Commission that 50 per cent, of the dairy farmers! could' not meet their obligations. Obviously the Government could not allow that state of affairs to continue, and was, in duty bound to take immediate steps to improve the position. The first thing done was to stabilise the. farmers’ income by means of the guaranteed price, and the next step was the stabilisation of their financial obligations through the work of the mortgage adjustment commissions. “Under the Guaranteed pi-ice system, dairy farmers’ returns bear a. direct relation to production,” the Prime Minister added. “That position did not exist before, when! they, doubled their production in a, ten-year period and |were, no better off. ‘“Nevertheless, ini spite of all the Government has done, a. member for a leading dairy district in, the Dominion, Mr. W. S. Gocsman (National, Waikato) and otjier members have claimed that the farmers did not want the guaranteed price, and certain Opposition members have asserted that they were returned because of their opposition to that principle. If this were carried to its logical conclusion, we would soon', be on the Opposition side of the House. “We will, however, have to ascertain whether the attitude of the dairy farmer toward, the guaranteed price scheme is as: has, been stated by their alleged, representatives, or whether these statements! have been made simplyi for party political purposes.” Asked whether an immediate investigation was likely, to ascertain the real feeling in the industry, Mr. Savage said that at the, moment, the Government had other problems engaging its attention. It was obvious, however, that statements that had been made could not be allowed' to go unnoticed. IE farmers preferred the uncertainties of the old: system to the regulated income and admittedly improved marketing methods introduced by the (present Government, he Would lose no sleep in forcing them to accept something they did, not want. This applied also to other producers, to whom the guaranteed price principle .had been extended. REPLY TO MR. MULHOLLAND. WELLINGTON, July 17. Replying to-day to the statement of the' Dominion President of the Farmers’ Union (Mr. Mulholland)', concerning the guaranteed price, Mr. Savage emphasised 1 that his main object was to learn from the dairy farmers' themselves whether they, wanted to scrap the Government’s marketing and guaranteed price policy. If their attitude' represented a genuine- attempt to release the dairy farmers from the policy which was: put into operation as a means of helping them to be free from the vagaries of the overseas market, it was obvious that the Government must take notice of it, and seek to learn the' min’ds of the farmers on the matter.

Mr. Savage des'cribed as: a; complete somersault Mr. Mulholland’s statement that the Government deserved' well of the industry, for the energetic man-

tier in which it hadi established 1 the marketing organisation in London. He dealt also vdth the “cool assumption” by Mr. Mulholland, that it was intend--3d td hand over to the industry all the present facilities for organised marketing to a few: private individuals. Again assuring the farmers of Ills deep interest- in their welfare, and his desire to have from them, at first-hand a clear statement as to whether they thought the present marketing system with guaranteed prices was an improvement on the old! order of things, Mr. Savage said that the present dairying season would probably end with the farmer's getting an aggregate- of about] £2,000,000 more than they would have received if Mr. Mulholland had been successful with his. propaganda against the' Government’s policy. DAIRY BOARD’S ATTITUDE. WELLINGTON, July 17. Outlining the Dairy Board’s attitude toward the guaranteed price, the Chairman (Mr. Hale) said that the Board from the outset regarded the scheme as a matter of Government policy, and had co-operated with the Minister for Marketing. At the same time, he stressed that the industry had never asked for the scheme, noi had it had an opportunity of voting independently on the question, and that that section which originally favoured it had since found costs had soared above benefits.

A meeting of the special committee set. up to handle the guaranteed price question on behalf of the industry had been fixed for early in August, said Mr. Hale.. By then, the Government’s intentions would probably have been clarified, and the industry would be in a sound position to review the matter, in the light of recent' developments.

RURAL PARTY SUGGESTED FARMERS’ UNION RESOLUTION. WELLINGTON. July 17. The following report of a discussion held in committee at the annual conference of the Nev.’ Zealand Farmers Union has been issued: — The conference, after a long discussion in committee, on what means could be used most effectively to counteract the progressive worsening of the farmers’ economic position, adopted the following resolution: That the Dominion executive be instructed to draw up a programme of action —either economic or political —to be placed befoie a special Dominion conference, to be called’ immediately it is deemed' advisable,

having special consideration to the fixing of the guaranteed price, or the Government’s expressed intention in respect to the finding of the Sheepfaim-, ing Commission. This conference is of opinion that, ultimately, political action through the medium of a Rural Party is an effectual means of securing economic justice for the farmer and the community in general. Therefore, the Dominion executive is instructed to examine the question from all angles, with a view to the adoption, by the next annual conference, or sooner if necessary, of concrete proposals to give effect thereto. Mr. Mulholland commented that this resolution would, in certain circumstances, become of momentous importance. and impressed on- delegates the gravity of the implications that it contained'.- It was evident, he added, that •the farmers were determined to take much more positive action, unless means were immediately forthcoming to rectify the industry’s position.