N.Z. FRUIT EXPORT

Greymouth Evening Star, 4 November 1939, Page 2

N.Z. FRUIT EXPORT

LACK OF SHIPPING SPACE GROWERS REVIEW POSITION [PEP. PRESS ASSOCIATION.] WELLINGTON, November 3. Members of the New Zealand I* ruit Export Control Board have been m conference for the last three days with the directors of the New Zealand Fruitgrowers’ Federation, during which period they have had frequent, contact with the Minister for Marketing (Mr. Nash), but the Minister and the conference failed t o reach agreemen on the question of Government assistance to the industry. Fruitgrowers, in a 'prepared statement from their conference state: — “While the war has ot necessity completely upset the economics of the Dominion’s primary industries it is recognised that the prejudicial effect, especially in regard to meat and wool is infinitesimal as compared with tne problem which faces the fruit industry. In the year’s freight plans tor New Zealand produce in normal times shipping lines have reserved refrigerated space for fruit, for approximately 1,300,000 cases of apples amt pears, this total according to seasonal conditions being varied above or below that figure. “That the British Government has so far been unable to make any commitments in regard to the purchase ol fresh fruit is not, due to lack of effort on the part of the New Zealand Government. to induce something of this nature being done. On the contrary

the Minister for Marketing fras used every endeavour to induce the British Government either to purchase a leasonable quantity of fruit, or failing that to make some moderate provision for shipping space. 1 “While the likelihood of purchase is still remote, the British Government niakes it clear that there is no intention of placing any embargo on imports of fresh fruit front the Dominions, and fruit interests will be, free to use any suitable refrigerated tonnage available on overseas ships. Unfortunately there is nothing to justify the assurance that such tonnage will be available, but on the other hand, it is not suggested that a, completely pessimistic view should be taken of the 'position.

TWO ALTERNATIVES “Through no fault of either the New Zealand Government or the fruitgrower the fruitgrower must visualise giving up his valuable market overseas in favour of other sections .of the primary industries, necessitating the marketing within New Zealand of double the normal capacity of the markets. or elimination of sufficient of the crop to bring supplies within reasonable range of the demand, even after utilisation of the maximum quantity through by-product channels. “Whichever course it may be found ultimately necessary to follow the result from a financial point of view must obviously be disastrous to the fruitgrower. From whatever angle the position is viewed the fruitgrower is emphatic that the problem is a national one and that the full burden of these emergency conditions should not fall upon the shoulders of the fruitgrower. He on his part faces up to the position and frankly recognises that any question of profits must be placed in the background, but on the other hand he does claim equal rights with his employee to an equal standard of living after honourably meeting his production debts. “The present difficulties have been general and cumulative over a period of years. Because of the present emergency conditions due to the Avar gi-OAvers’ difficulties have been accentuated and are now at the stage of becoming tragic unless decisive action on a national scale is taken promptly.” After revieAving the history of the Fruil Board, the statement continues: “The board in its operations has at all times worked in close association Avi'th the Government of the day, and it is the firm conviction of the industry that it is the continuation of this position Avhich Avill give most, content within the industry. If Government control is exercised the industry Avill lose its board and thereby its close contact Avith the details of export marketing, and there is no evidence that market returns Avill be increased or growers’ costs reduced, nor that any important advantage Avill accrue to the Government.

“Acting in conjunction Avith Government circles Ave suggest that the present export organisation gives to growers a feeling of freedom on a democratic basis Avhich can othenvise be obtained. In vieAV of this it may be wondered why the two organisations of the industry requested the Government to take complete control and give to the industry its cost of production plus a standard of living in keeping Avith the fruitgroAvers’ services to the community. It Avas because the general rise in costs, not only Avithin the industry, but throughout the Avhole community, did not give to the groAVer an increased return Avhereby those costs could be met, and Government control Avas the only basis upon Avhich Mr. Nash would agree to give further assistance to the industry. “So long as 2800 fruitgrowers continued to compete one. against the other Avithin Neiv Zealand in blind and often criss-cross consigning to auction markets, so long would there be glutted markets and needless expenditure. On many occasions leaders of the industry had tried to bring order out of chaos by organised effort, but all these efforts lacked statutory authority and failed. “Because of this, in 1937 the local market position, in 11m face of rising costs, became so acute that fresh efforts to obtain a satisfactory basis for producer control Avere discussed, but as this could not be obtained, the Government gave a. general undertak-

ing that if the general price of apples within New Zealand during 1938 fell below 5/2 return to the grower, f.o.b. or f.0.r., at the local dispatch point, the Government would subsidise the general average up to the 5/2 level, and pay this to all growers. This guarantee resulted in a substantial pay-out by the Government. HEAVY PAYMENT “So heavy was this payment that Mr. Nash said he would not. consider the continuation of this arrangement and would give the industry no fuither assistance on the local market unless the industry requested. Government control. It had been pointed out to him that it would be difficult to get all growers to make a request of this nature. He said that if the Fruitgrowers’ Federation and the Fruit Board on behalf of the industry made the request he would be prepared to introduce Government control. “The Federation and the Board requested the Minister to take control and give to the producer his cost of production, plus a fair standard of living. Mr. Nash thereupon appointed a committee to investigate ways and means.

“The inquiry conducted by this committee was extended to receive the vieAvs of all concerned Avith the industry, and a report of the committee was awaiting Mr. Nash on his return from London. Shortly after Mr. Nash’s return. and before he had • time to peruse the report, the present war occurred, and all fruit matters had to be set aside until such time as the national interests Avith regard to more important primary products had been fully dealt with. “By reason of the emergency conditions and loss of expert markets control on the local market became more than ever essential. Realising that our previous request for a price-fixing tribunal might be a factor in delayingproceedings, the industry withdrew that request and suggested that the Minister fix prices to growers on the evidence submitted to recent investigation.

“The Minister has suggested that a producers’ organisation be created, associated with Avhich Avould be representatives from interested Government departments, this organisation to be given statutory ipoAvers for the sale of fruit on the local market, the Government to assist by purchasing approximately a third of the crop at 6/9, f.0.b., the groAvers’ organisation to be responsible for collection and storage of that fruit until called upon by the Government to deliver it, whether to an overseas ship or as otherwise directed.

“This offer after being considered by the growers’ conference Avas not accepted, but they suggested an alternative Avhich Avas unacceptable to the Minister. The Minister said he was not prepared to take over fruit at the essembly point, nor Avas he prepared to accede to the industry’s request to increase the Government, purchase to 1,250,000 cases, but Avas prepared to increase the f.o.b. price from 6/9 to 7/-.

FULL CONTROL SUGGESTED “As an alternative to the Minister’s proposal, groAvers’ organisations have again requested that the Minister take full marketing control of all apples and pears, and guarantee to the producer his cost of production plus a reasonable standard of living, or alternatively to grant to the producers’ organisation, with which Government officials Avould be associated, statutory poAvers necessary for organising the local market, and through this producers’ organisation guarantee to the grower a minimum return of 5/- a case at the assembly point.

“We noAv aAvait the Minister’s reply. Arising from the present, position groAvers are faced Avith grave immediate problems. Through their being unable to make satisfactory financial arrangements for the coming crop they are unable to make commitments for their usual supplies. The repercussion of this is that supplying firms in various parts of the Dominion are even now making inquiries from the federation as to when the return to normal supply of material may he expected. The Federation is unable to give a satisfactory ans Aver to them. "Perhaps the point of most importance is that through the present uncertainty growers’ ordinary finance facilities are restricted, making it difficult for groAvers to get the cash necessary for the engagement of essential labour for current operations in the orchard. Unless the necessary labour for spraying can be engaged the quality of the coming crop is endangered.

“The New Zealand Workers’ Union lias notified the industry that the union desires a new agreement, as the present scale of wages was determined with the cognisance of the Government and on the understanding that Government assistance to the industry would he provided to enable growers to pay such wages. Withdrawal of the Government assistance now jeopardises the workers’ prospects of the present wages scale being continued.”

LATE SPORTING NEW ZEALAND CUP MEET.INC. [PER PRESS ASSOCIATION.] CHRISTCHURCH, November 4. The Canterbury Jockey Club’s New Zealand Cup meeting opened at. Riccarton this afternoon, in showery weather. Results: — SPRING HURDLES, 1“ miles. 4-4 FUNDY BAY (G. Ridgway) 1 1- DIVIDEND (R. Register) .. 2 2- DORADO (R. Mackie) .. .. 3 SPRING PLATE, one mile. MOORSOTIS •• } AUTHORESS great swoop • • ■ • “