PRICE OF PIP FRUITS

Greymouth Evening Star, 19 November 1943, Page 6

PRICE OF PIP FRUITS

GOVT. OFFER REJECTED. WELLINGTON,. Nov. 18. The directors of the New Zealand Fruitgrowers’ Federation/ Ltd., have refused to accept the vrovernment’s price for the coming season’s pip fruit crop.' For some months the rederation has been negotiating with the Government for an increase in the price. Last year’s price, with concessions, was the equivalent of an average of 6/- a case. Eor the coming season the Federation claimed G/TgCi, which, it said, was barely the cost of production costs as a basis of the price. The Federation’s statement is as follows: —“A distinct shoe?; was experienced by the directors to-day they met the Minister of Finance (Mr Nash), the Minister of- Suppiy (Mr. Sullivan), the Minister of Marketing (Mr. Roberts), and the Minister of Rehabilitation (Mr. Skinner), to hear the result of the consideration which had been given by a sub-committee of the Stabilisation Commission to production costs in the pip fruit industry. The committee had spent three months imconsideration of tnese costs, but Mr. Nash advised the directors oi the Federation that production costs could not be considered, and that the only concession which would be granted was a small allowance in the way of a cool store premium on portion of the crop, and the cancellation of the inspection levy with a' vague promise that the position of growers on uneconomic orchards would be considered.. “Amazement and dissatisfaction were most emphatically expressed. The directors refused point blank to accept such unreasonable terms.” MR. NASH’S COMMENT . Mr. Nash said to-night that the information conveyed to the Federation was in accordance with the decision of the Stabilisation Commission, in which it was stated that’ since 1939 the costs of fruitgrowers had increased by lid a case, while the Government had increased the price by 1/2 a case. Fruitgrowers were covered by the Prime Minister’s original pronouncement when he introduced stabilisation in December, 1942, when he said that the price of main farm products would not be allowed to rise, nor would farm costs be allowed to increase. “It has been established,” said Mr. Nash, “that between the 1943 and 1944 growing seasons no increase in costs has had to be borne by the industry. It was recommended that a bonus of fid a case should be paid on all fruit which, in the opinion of the inspector is of a type and maturity suitable for storage for four months or longer. This bonus will be paid during the coming season. The inspection fee of Ida case at present charged by the Government will be abolished. The Internal Marketing Department will extend its purchasing schedule to include fruit beyond the maximum count of 252 apples to the bushel, at a price to be arranged. The return to the producer for such apples will be outside the apple pool arrangement. “A .committee of inquiry wnl be set up to make an economic survey of the industry with a view to determining means of improving the position of that part of the. industry below the economic margin.” Mr. Nash said that when the evidence was available, the Government . would make special provision, for fruitgrowers whose orchards did not show a reasonable economic return for the labour entailed in production.

TOO MANY INQUIRIES ?

WELLINGTON. Nov. 19

The Fruitgrowers’ Federation, in reply to Mr. Nash's statement last evening, says: “Mr. Nash’s promise, to set up another committee of inquiry into the pip fruit industry is ludicrous. Since the Government came into power, the following commissions ol inquiry have already sat: 1936 Coleman Commission, 1937 Departmental Commission, J 939 Picot Commission, 1943 Stabilisation Commission. In addition. the Government’s own body. National Fruit Advisory Board, has recently reported on the alarming decline in production throughout New Zealand. Another survey of industry will only cover the ground already ■ullv explored and to judge by yesterday’s interview with the Ministers they will not take notice of the report anyway. The directors of the Federation were definitely led to believe the Stabilisation Commission was to inquire into the whole cost of production, and at the request of the Stabilisation Commission the Federation prepared and presented its evidence accordingly. Now the Commission reports on increased costs only, a matter which has never been in dispute. When the fruit was originally purchased by the Government on the outbreak of the war, the price offered was at least tenpence a case below the cost of production, but was accepted as a temporary expedient, as explained to Mr. Nash repeatedly. To continue to build the price on that temporary foundation is futile. The industry has been fooled again and there is a feeling that even the Ministers themselves may have • been misled by their own officers.”