GUARANTEED PRICES

Manawatu Standard, Volume LVI, Issue 169, 18 June 1936, Page 4

GUARANTEED PRICES

MINISTER OUTLINES PLAN. TRADE WITH BRITAIN. Per Press Association. HASTINGS, June 17. The statement that the Government had no intention of dealing with anything but dairy produce during the present season in connection with its export marketing principles was made to the National Dairy Conference in Hastings this ‘afternoon bv the Minister or Finance (Hon. Walter In ash). “One great object we set out to achieve was the removal for all time the fear of price falls and the ecstacies of price rises,” he said. Of course, the farmer does not mind the ecstacies, but there are often very unfortunate sequels, and it is to avoid these that the Government policy will strive to accomplish.” v He had been reminded, Mr Nash added, of Dickens’s “Great Expectations.” He did not know whether these expectations would be realised or could he tell what the price this year would be; but it would be more than the price obtained last year or the year before, or the year before that. Dealing with the provisions of the Act, Mr Nash said the marketing department would ultimately take control of the marketing of all primary produce. 'That did not mean that meat and wool would be taken in now or at any time in the immediate future; but when the imperative need ot such control had been proved the same procedure as had been applied to daily prod uce could be applied to other products. The people at the head of the fruit-growing industry, said Mr Nash, had already expressed then-anxiety that the same procedure should t>e made to apply to the export of fruit. He had answered tlia.t he would, discuss the request next year as it was not the Government’s intention to - elude any produce other than butter and cheese under the Act this year. The existing Meat and Fruit Boa ds would be used as machinery for putting into operation the markotin .y tern as it would apply to the fruit and meat industries. SOURCE OF FINANCE.

The great question was where was the Government going to get the mouev, Mr Nash continued. Before the passing of the Act lie had discussed the financial aspects with M Leslie Lefeaux, Governor ot the ireserve Bank, and had arranged tor whatever money might be necesoaiy o enable the dairy export policy of the Government to be put into e u ec '.. There would be in the Reserve Bank an account into which all the money from guaranteed prices would be paid and into which the proceeds from the sale of products overseas woiud be I>d Ali that could be done at this end, and if it were to bo successful must be supplemented at the other end and not solely by Tooley Street. So fa.r as the Tooley Street merchants were concerned, they would obtain the most profitable results by co-operating with the New Zeuland Government, and the Government had not had word that they were unwilling to do so. they would have to carry put their marketing in accordance with the Government’s intentions. Then they would be paid as well vs it was humanly possible to pay them for their services.

The dairy export policy, continued the speaker, could not be put into effect unless the Government could establish a reciprocal trading agreement with the British Government. Under the new methods of marketing it would be possible for him to say to the British Government: VVe can produce 150,000 tons of buttei. We have taken every step to ensure * its uniform and maximum quality. Wc can let you have it at a minimum price according to what the farmer ought to he paid for the work ot producing it, and wc agree to take from you goods to the value of what we receive for our butter. You take this £15,000,000 worth of butter from us and we will in turn, after the provision for interest and for the redemption of the debt wc owe you, use' tiie money in Britain rot buying what we want.”

Those principles, said Air Nash, could he in being among all countries within the next ten years. “That may mean lie added, “that our produce will be taken nowhere else; but I won’t worry. It may mean wc will have to take all our cotton goods from Britain and not, sav. from Japan.” If there were products that might he brought into being in New Zealand and that were not wanted hv Britain, then the Government would make bilateral agreements with couutiies that would take those products. NO BONUS. Going on to speak of his conception of the world as one economic unit, Alt Nash said the rest of the world could not keep Germany or Japan or India on a lower level than itself. “If we have resources that are not available to other countries, then we must make bilateral agreements with those countries.”

He had been asked whether, if prices realised were greater than the guaranteed prices, the excess would belong to the farmer or to the Government. As Air Savage had said, the Government did not want to make a profit out of any industry. If there were an excess it would bo credited to the dairy industry ac-

count and used for the benefit of the U 1 Why y not a bonus? lie had been ■ asked There would bo no bonus. He could say, however, that the excess if anv, would not be used consultation with the representatives of the. industry. Under the policy of the Government no section of the conirnmuty voukl benefit at the expense of anothei section. The Government were trying to ensure that every man on the him , civery man on the waterfront, and every clerk in an office was paid a legitimate share of the wealth h brought into the country. In answer to a question which dealt with the possibility that men offered 16s a day on public works will not be willing to work on farms, and consequently farm labour may be difficult to engage, Mr Nash said the Government were acting in the matter towards ensuring that farm labour would be available and the rates of pay lmd alreadv been determined. It meant that if work were not available on public works and farm labour were available, men refusing to accept farm work would not be paid sustenance.