NEW ZEALAND FRUIT

Greymouth Evening Star, 1 November 1939, Page 10

NEW ZEALAND FRUIT

EUROPEAN MARKET AFFECTED. MINISTER REVIEWS PROSPECTS. [FEB PBESS ASSOCIATION.] WELLINGTON, October 31. . Under the war situation New Zealand was faced with the possibility of having no European market for the export of apples and pears, and the United Kingdom Government had notified the Dominion that it did not desire to buy any fruit, said the Minister for Finance and for Marketing (Mr. Nash) when discussing negotiations for the sale of the fruit crop in a national radio broadcast this evening. The estimated production of apples and pears in the current season was 3,403,000 cases, the Minister, said. Last year up to 1,500,000 cases had been sold overseas, including about 600,000 cases in the United Kingdom, and some in Europe, the Far East, and South America.

This market was now in a very dangerous and delicate position, and the Dominion might not be able to send any away. On the local market the quantity sold was about 1,250,000 cases. Fruitgrowers had built up the industry which produced up to 3,500,000 cases, and there was no certainty of a. market for some 1,250,000 to 1,500,000 cases, Mr. Nash said. Under the war situation, all shipping and storage space must be used to the full in taking food requirements to the United Kingdom, and the United Kingdom Government had said it must give preference to butter, cheese, and meat, and other primary products. It had not been possible to make any arrangements for space for fruit. The Government had been in touch with the shipping companies, the British Government and other governments; but the Dominion might not be able to send any.away,

or only a much smaller quantity than it usually sent. Negotiations which have taken place between the Government and the fruit industry over the last year or two were outlined by the Minister. The Government desired to extend to those working in primary industries the system of guaranteed prices, under which for goods produced for marketing it would pay the producer a price that would give him a reasonable re-

turn for his work, and cover his costs, “Last year I told the Fruit Export Control Board and the Fruitgrowers’ Federation that the methods used in the past to give assistance to the fruit industry on the local market could not be continued,’’ Mr. Nash said. “I said the Government would be prepared to extend the guaranteed price system if requested to by the board and the federation. They asked that the Government undertake the responsibility for marketing both export and local apples and pears.” The Minister said that a committee under the chairmanship of the Hon. W. Lee Martin, then Acting-Minister for Marketing, and including representatives of the industry and others, had taken evidence from representatives of all those concerned in the industry. One thing was clear, and that was that there was no unanimity on a, marketing policy in the industry. In Nelson and Hawke’s Bay there was a

large majority in favour of the Government taking over the marketing of fruit. In other parts of the Dominion that was not the case, in spite of the recommendation by the Export Conn trol Board and the Fruitgrowers’ Fed-' eration. If the industry was not substantially in favour of the Government assisting in this wav, the Government; would have Io consider whether it

would accept the responsibility of marketing all apples and pears.

SERIOUS EFFECT OF WAR.

That was the position before the war situation developed, and that put a totally different complexion on it. Now there would be more fruit than could normally be marketed locally at anything like a price that would cover costs.

He had had several discussion with the board and the federation, Mr. Nash said, and he had suggested that tlip whole of the marketing procedure for apples and pears should be delegated by the Government to the Board. The Board would be responsible for marketing all fruit during the coming season, and the Government would enter into a contract to purchase 1,000,000 cases at 6/9 a case f.o.b. The Government would take the risk of getting them away from the Dominion, ’ and if they were not exported, it would have to find something to do with them. If the Government could not find the space on ships, the Minister said, it would do all it could to avoid the quantity it bought going on the local market, and so destroying the market for the balanace. The Govern-

ment might make some arrangement to distribute the fruit among the schools of the Dominion, and in other ways in which fruit could easily he used without affecting the local marketing. However, the Government would not agree to waste fruit, and he had made it clear that it was unlikely that the Government at any time would agree to destroy fruit. The Government would undertake to try to get space for some fruit, and buy every case it could find space for to send overseas at 6/9 f.o.b. The Board would thus have from £340,000. to £350,000 to start off with. That day, Mr. Nash said, he had had a long discussion with representatives of the industry, and they had said that the Government’s offer was not acceptable.. They asked the Government to take over the whole fruit crop at a guaranteed price, based on the costs

of production, the price for an unrestricted quantity of fruit to be sold in an unrestricted market. The fruit industry, he said, should think what it would mean if there were no co-opera-tion by the Government. The industry might reasonably ask the Government if it was willing to co-operate, and the Government was. Mr. Nash outlined representations made from various fruitgrowing localities. Otago wanted the Government

to guarantee to take all fruit for export at 6/9 a case at assembly point, and leave the Otago people to market the rest. Canterbury suggested that the Government should buy 1,500,001) cases at 7/6 a case. That was more than had been paid last season, when there was a market overseas. Mr. Nash siad he had told the deputation that the Government could not do that. Wellington wanted the local market; for itself, and the Government to buy 1,500,000 cases at 6/6 a case at assembly point. Auckland and North Auckland had made similar requests. “The representatives left, after a happy and long discussion, to examine the position, and I hope it will be possible to come to some arrangement that will give a reasonable return <o the grower and avoid waste,” Mr. Nash said "The problem is that we will have from 3,250,000 to 3,500,000 cases, with a market for ”,500,000 at the outside. The producer is entitled to pay-

ment for his work, and fruit is splendid food, so the Government will endeavour to help the industry, and 1 am hoping that the representatives of the. industry will be able to think the (problem out, and that we will be abb’ to come to a reasonable arrangement, ■and something that the fruitgrowers .will consider reasonable in the cir- . cumstances.’’