PIP FRUIT PRICES

Greymouth Evening Star, 20 November 1943, Page 4

PIP FRUIT PRICES

MR NASH’S STATEMENT

WELLINGTON, November 19. Commenting on the statement of the Fruitgrowers’ Federation, the Deputy-Prime Minister (Mr Nash) said that while recognising the great importance of the production of twit in New Zealand it was necessary to consider the affairs of the industry in relation to the economic position of New Zealand as a whole, and to ensure that it was seen in the proper perspective. “The position is that before the outbreak of war the industry was m receipt of a State guarantee in regard to its exports,” said Mr Nash. ‘At the outbreak.of war, when the export markets vanished, the industry was guaranteed an average return of 5/a case, which was increased to 5/8 average for 1941 and 1942 seasons, the assistance given to the industry in 1941 amounting to the sum of £468,000. The following year the assistance continued, the cost, to tne Government being £130,000. Last season negotiations concerning prices were proceeding when the Prime Minister, announced the general scheme of economic stabilisation. Special consideration was, however, given to the financial position of the fruit industry, and additional cost allowances were granted which had the effect of improving the growers’ position for the last season as compared with the earlier years of the war, and probably placing the industry as a whole in as good a position as it was in pre-war years. “During the last year, under stabilisation, growers’ costs have been firmly held, and at an interview which took place on November 18 I indicated the additional assistance which the Government is prepared to give for the forthcoming season, the effect of which would be to give growers a higher return to the case than they obtained last year. All inauiries which have been made into the affairs of tne industry proved that quite a substantial proportion of the crops marketed are produced on a payable economic basis, and the economic survey which has now been offered is not merely a further inquiry, but has for ‘its definite objective the placing of the uneconomic portion of the industry bn a satisfactory basis. It is considered that under war conditions, within the framework of the economic policy which aims at holding costs and prices, the offer made by the Government was an equitable one.”