GUARANTEED PRICE

King Country Chronicle, Volume XXXIII, Issue 4814, 24 July 1939, Page 5

GUARANTEED PRICE

PRINCIPLE SUPPORTED. RESOLUTION CARRIED AT PIO PIO CONTINUATION OF POLICY WANTED. At the annual meeting of the Pin Pio Co-operative Daix-y Co., Ltd., on Saturday a resolution, moved by Mr. I. M. Kidd, and seconded by Mr. A. H. Morris, was carried as follows:

“That this annual meeting of suppliers express, approval of the principle of the guaranteed price, and trust that the Government will continue with this policy.” In proposing the motion Mr. Kidd read a report of the recent statement of the Prime Minister that if the dairy farmers contended that they could do better under the old system of rising and falling prices it would be the duty of the Government to endeavour to meet them. Certain election results and statements might induce him to take steps to determine whether or not the farmers desired the continuation of the guaranteed price system.

Mr Kidd said that never in his ten years’ experience of farming had farmers received Is 3d per lb for butterfat, and,- from his experience he could say definitely that farmers’ accounts had shown a marked improvement in the last few years. He maintained that increased costs had not wholly absorbed the increase in payouts which had followed the guaranteed price. It had been said that the Government had not followed the advice of the guaranteed price committee, but it had to be recognised that the Dairy Conference at New Plymouth had refused to accept the finding of such a committee, but had elected to place the responsibility of fixing the figure of the guaranteed price upon the Government. By this decision the dairy industry had lost the difference between the committee’s finding and the figure fixed upon by Mr. Nash.

In giving his support Mr. V. R. Smith criticised the voting of members to the Dairy Board on a tonnage basis. It was possible under this system, he said, for the Dairy Board to represent only a minority of dairy farmers. If it came to a vote it would be found that the majority of farmers supported the guaranteed price. Mr. Stead asked if the resolution went forward, would it mean that suppliers were in accord with the price paid out. If that was the case, many would not give their support to it. However, when the chairman indicated that the resolution supported the principle, and not the actual figure, of the guaranteed price, Mr. Stead indicated that he was satisfied.

Replying to criticism of the election of the members of the Dairy Board, the chairman of directors, Mr. J. E. Trust, pointed out that each factory directorate elected members to the district ward—in the case of the Pio Pio factory to the South Auckland Ward, and from this conference members were elected to the Dominion Conference. At this conference last year it had been decided to accept the price recommended by the committee, and forego the increase in costs which had ocuiTed in the interim.

He considered that all present at the meeting agreed with the principle of the guaranteed price legislation, but it would be held that the price should be set at the figure recommended by the Committee. As Mr. Kidd had said, the New Plymouth Conference had wanted the Government to accept the responsibility for the fixing of the price, but this had been done when consideration was being given to the setting up of a tribunal consisting of a Supreme Court judge, and a nominee of the Government and of the dairy industry, to consider the matter. As one nominee would cancel the other, it would mean that the responsibility for the fixation of the guaranteed price would rest on one man alone, and this the industry was not prepared to accept. The position became altogether different when a committee of practical men were' appointed.

Mr. Trust said that the company should pass a resolution agreeing with the principle of the guaranteed price, though he added that a resolution agreeing with the actual price paid would be a very different matter. When put to the meeting Mr. Kidd’s motion was carried unanimously. It is to be forwarded to the Prime Minister, the Minister for Marketing, and to the 1 member for Waitomo, Mr. W. J. Broadfoot,