Greymouth Evening Star. FRIDAY AUGUST 2, 1946. Higher Export Prices

Greymouth Evening Star, 2 August 1946, Page 6

Greymouth Evening Star. FRIDAY AUGUST 2, 1946. Higher Export Prices

’J’TJE Minister of Finance, Mr. Nash, was

able this week to announce substantial financial gains to New Zealand through the revision of "the bulk purchase agreements with Britain. Britain is to buy New Zealand butter at 175/- sterling per cwt. —an increase of 16 per cent, on current rates—and there is to be an ‘‘equated increase” in price for cheese. Meat prices are to be advanced by 7| per cent., with. the. exception of pig meats, which are to rise by 11-J per cent. These rates mean that no hard bargain has been driven, as they are well below world parity as measured with the United States and Canada.

The Government proposes to credit the increases “to the dairy and meat stabilisation accounts, where they will be held for the exclusive benefit of producers.” It is interesting td note that figures given in the annual report of the Marketing Department for the year ended July 31 7 1945, show that at that date the aggregate credit in the farmers’ overseas trading accounts was £14,255,428. The balances in the stabilisation accounts were given as follows: Dairy industry, £4,675,446; meat £2,913,671; bobby calf, £102,940. To these must be added credits of £6,245,413 in the meat pool account, £226,934 in the bobby calf pool account, and surpluses of £91,024. This was the position over 12 months ago and the additional credits which have since accrued will no doubt be considerable.

Mr. Nash has told the farmers what the British Government will pay the New Zealand. Government for the farmers’ products. He has yet to tell the farmers what proportion of the increases the New Zealand Government will allow them. That Mr.- Nash has succeeded, on the revision of the purchase agreements, in obtaining higher prices from Britain is in itself an admission that costs in New Zealand have risen. To what extent is a question on which there will do doubt be divided opinions. Mr. Nash has not been very sympathetic to farmers’ claims in the past.

It has to be recognised by farmers in their own interests that stabilisation is an efficient weapon with which to counter the effects of fluctuating prices. There is, however, a dearth of information as to how the various funds are being held and, if invested, how they are being invested. It is known, of course, that part of the stabilisation credits are used for the payment of a subsidy to keep down the price of meat to Now Zealand consumers. Another aspect of the position on which the public is entitled to more information is the question of what limit is to be set to the primary products stabilisation funds. As has been shown they have already reached a total of many millions. It is no wonder that in these circumstances the farmers should desire a larger share in the control of the marketing of their products.