IN AGREEMENT

Hauraki Plains Gazette, Volume 52, Issue 3281, 28 June 1943, Page 3

IN AGREEMENT

INDUSTRY & GOVERNMENT POSITION OF FARMER ECONOMIC STABILISATION Referring to the Government’s policy of economic stabilisation, particularly in relation to the dairy industry, Mr Barclay said that, as he had explained in a letter replying to the chairman of the New Zealand Dairy Board, Mr W. E. Hale (of Turua), the Government’s decision was based on the assumption that the industry accepted the .61d war cost allowance as covering the increased labour award. Mr Barclay read a letter from Mr Hale regarding the discussions that had taken place, and stating that the council of the dairy board appreciated the Minister’s helpful attitude and would approach the chairman, Mr Hale and Messrs W. Marshall and <C. P. Agar, as the industry’s 1943 Dairy Cost Committee. The Minister added that he would be happy to meet this committee in conference any time so that, as soon as possible, details for the practical application of the principle clearly accepted by both the Government and the dairy industry could be set out. “With further reference to the Government’s stabilisation policy, I also have great pleasure in being able to announce on this occasion the reaching of a complete agreement between the Government and the New Zealand Farmers’ Federation, as representing primary producers generally, on the question of farm products stabilisation accounts. The terms of this agreement are of such importance and are of such vital interest to all primary producers, that I propose to read the final letter submitted to the Farmers’ Federation by the Government and accepted by the federation in a letter from the chairman, Mr Mulholland: — Farm Products Stabilisation Accounts “Referring to your letter of May 31 and to discussions that have taken place between representatives of your federation and of the stabilisation organisation, I understand that agreement has been reached on the points involved subject to my approval. The forms in which the agreement now stands are as follows:—

1. A separate account will be kept in respect of each product or group of products as may be determined by the ■Government after consultation with the industry; 2. Stabilisation accounts will be kept in the marketing accounts with the Reserve Bank, but will be z recorded ■separately from existing pool and other accounts. 3. Into the stabilisation account for any product will be paid any increase in price received from sales overseas from that product after the determined date unless the increase, although related to a specific product or products, has been paid for a general national purpose, in which case it will be applied in clause 5 below. 4. If any increase in price is paid to meet increased costs in respect-of more than one product the increase will, after consultation with the particular organisations dealing with the products involved, be allocated among the respective stabilisation accounts in proportions related to the cost increases. 5. If any increase paid from overseas on any product is paid for any general national purpose such as to maintain sterling balances to offset general import price overseas or Government expenditure in holding costs that increase will be applied as follows: —- (1) If. it includes compensation for any cost increase held by. subsidy which is charged against . ' a stabilisation account, a credit , s equivalent to the amount of the subsidy will ’be made to the appropriate stabilisation account; .: (2); The balance of the payment A . will be credited as the Govern- , . ment determine. 6. Where a subsidy is required to keep costs of production of any pro-

duct down to the level existing on the determined date, the amount of that subsidy, excluding the continuation at the level on the determined date of any subsidy paid or payable prior to that date, will be debited to the appropriate stabilisation account subject to the provisions in 7. 7. If any increase credited to a stabilisation account is paid specifically to cover increases in costs including increase in costs held by subsidy paid or payable before the determined date, the account will also be debited with any part of that earlier subsidy which relates to increases specifically covered. ' 8. Any debit still remaining in a stabilisation account on the closing of the account will be transferred to War Expenses Account. 9. Any credit still remaining in a stabilisation account on the closing of the account will be _ used for the •benefit of the appropriate industry after consultation with representatives of that industry and no payment after consultation with representatives of that industry and no payment will be paid out of the account pursuant to this clause except with the consent of the producers’ organisation dealing with any products concerned, it being understood (1) that this shall not be construed as an undertaking that credits will be used at the time the scheme of stabilisation ends; and (2) that such credits will not be paid out in respect of produce sold during the period when the scheme of economic stabilisation was in operation, (3) that agreement will be reached within twelve months of the closing of the account. 10. Reasonable information concerning stabilisation accounts will be made available to the producers’ organisation dealing with the particular product. Reasonable information concerning the basis on which any increases under’ Clause 5 have been arranged will be furnished from time to time to the Farmers’ Federation. 11. The “determined date” will be December 15, 1942, unless by agreement between the producers’ organisations and the Government a different date is fixed to meet particular circumstances.

12. While this stabilisation policy continues, prices for farm products be not allowed to fall below the level of prices ruling at the date that stabilisation became effective (December 15, 1942), irrespective of the effect ■of internal or external markets. I am pleased that agreement has been reached in these terms which I formally approve, and I would be grateful to have your confirmation as early as possible. Yours faithfully, (Sgd.) D. G. SULLIVAN, Minister of Industries arid Commerce. Tribute To Farmers’ Leaders “To my mind,” said Mr Barclay, “the scrutiny of this agreement on such a vital issue is a striking tribute to the farsighterness of the leaders of our primary industries who have been prepared to co-operate fully with the Government to achieve a successful economic stabilisation policy, realising that the primary producers, as much as any other section of the community, must lose heavily if inflation becomes widespread. I also think that the agreement reached is ■fair both to the farmer and to the Government representing the commun-