ECONOMIST’S OPINION.

Manawatu Standard, Volume LVII, Issue 232, 31 August 1937, Page 2

ECONOMIST’S OPINION.

QUESTION,OF EQUITY

AUCKLAND, Aug. 30

“The basis of the guaranteed price is regarded as a basis in equity, since the price is to be such that any efficient producer engaged in the dairying industry under usual conditions and in nominal circumstances should be assured, of a sufficient net return from his business to enable him to maintain himself and bis family in a reasonable state of comfort.” savl Professor H. Belsh&w, Dean of the Faculty of Commerce at the Auckland University College. “Unfortunately there can seldom bo agreement on the question of equityWhatever the price determined, there will be objection;) on the score that U does not provide an adequate return to a farmer for the services which he renders to the community. The expressions ‘efficient producer,’ ‘usual conditions,’ ‘normal circumstances’ and ‘reasonable standard of comfort’ are vague and incapable of precise definition.

“Even if the price gives some producers an income which is considered reasonable, there will lie many for whom it will not be regarded as reas onable.” he continued. “Further a price which mav appear reasonable now may not I>° reasonable as the season continues because of movements in cgists.. ‘Whether >or not the estimates o> farmers’ brganisit.’ons of the increase in costs in 1936-37 are correct I am not in a position to say. Tdo not think that tliev can be; attributed entirely to the Governments policy; It is, however, certain that we may expect further- increases-during next season. In these circumstances the comments already made bv representative farmers illustrate the danger that pressure will be in one direction to raise the guaranteed price.”