THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY “Public Service” WEDNESDAY, DECEMBER 6, 1950 BULK PURCHASES

Hauraki Plains Gazette, Volume 60, Issue 4365, 6 December 1950, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY “Public Service” WEDNESDAY, DECEMBER 6, 1950 BULK PURCHASES

Mr Nash has used the opportunity of the Commonwealth Parliamentary Association Conference for a defence of bulk purchase agreements between governments. That is not surprising; the former Minister of Finance believes in the theories of State-directed trade, guaranteed prices, pool accounts and import selection and control, and under his direction these theories were advanced intensively in New Zealand’s overseas trade. It may not be easy to break loose from the bulk purchase systems developed necessarily during the war. But it would be unwise to disregard their psychological and political dangers. Lord Llewellin in the same discussion touched on a point ignored by Mr Nash, declaring that in contracts between countries it is possible for a body of people in one country to feel they had been “taken down” by the other country if full agreement is not reached. This danger is all the greater within a union of nations such as the British Commonwealth, and New Zealanders lately have been embarrassingly aware of the strong feeling caused by Britain’s refusal to increase dairy purchase prices. Letters have been published in the New Zealand Press charging Britain with ingratitude, reminding the British people, of what was done for them through gift food parcels, and emphasising that New Zealand never put the “screw” on Britain, during the war when much higher dairy prices could have been obtained. These views are so foreign to the loyal sentiment of New Zealanders that they cannot be disregarded, however excessive some of the opinions may be. Further, there is a feeling that Britain, having improved her own position by depreciation of sterling, should be more ready to recognise the resultant economic problems of her Commonwealth food suppliers. There is another aspect of bulk purchases that may lead to a decline in Commonwealth goodwill. Political affiliations of sister Governments are so close that a Labour Government in Britain' might be more helpful to a Labour Government in New Zealand than to a non-Socialist one. Such a possibility would be very wrong, but of late years there has certainly been a greater tendency for Commonwealth Governments to interfere in each other’s domestic affairs. Under bulk agreements jt would be possible to carry this interference into the economic field. Indeed, the temptation would be almost irresistible to doctrinaires. When Mr Aneurin Bevan regards his political opponents in Britain as “vermin’’ he cannot be expected to look kindly upon non-Socialists elsewhere in the Commonwealth.

A London commentator admitted recently that it may be the duty of the British Government to make the best possible deal for its people, and he added: “That argument, however, can only be sustained if it is shown that in making such deals, the Government is not’losing something which any business man will agree is much more important than immediate bargaining advantage; that is goodwill.” Lord Lie wellin did well to mention this, in another way, to Mr Nash.