Guaranteed Prices

Manawatu Times, Volume 61, Issue 142, 18 June 1936, Page 7

Guaranteed Prices

What Will Happen To Surplus—lf Any? BARTER WITH BRITAIN HON. WALTER NASH ADDRESSES DAIRY CONFERENCE Per Press Association. HASTINGS, Last Night. The statomeut 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 by the Minister of Finance (Hon, Walter Nash). "Ono great object we set out to achieve was the removal for all timo the fear of price falls and the ecstacios of price rises,'’ he said. “Of course the farmer does not mind the ecstacies, but thcro are often very unfortunate sequels, and it is to avoid those that the Government policy will strive to accomplish.” He had been reminded, Mr Nash added, of Dickens’ “Great Expectations.” Ho 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 a'nd wool would bo taken in now or at any timo in the immediate future; but when the imperative need of such control had been proved the same procedure as had been applied to dairy produco could be applied to other products. Tho people at tho head of the fruit-growing industry, said Mr Nash, had already expressed their anxiety that the same procedure should be made to apply to the export of fruit. He had answered that he would discuss the request next year, as it was not tho Government’s intention to include any produce other than butter and cheese under the Act this year. The existing Meat and Fruit Boards would be used as machinery for putting into operation the marketing system as it would apply to the fruit and meat industries.

The great question was where was the Government going to get the money, Mr Nash continued. Before the passing of the Act he had discussed the financial aspects with Mr Leslie Lefcaux, director of the Reserve Bank, and had arranged for whatever money might be necessary to enable tho dairy export policy of the Government to be put into effect. There would be in tho Reserve Bank an account into which all tho money from guaranteed prices would be paid and into which the proceeds from the sale of products overseas would be paid. All that could be done at this end, and if it were to be successful must be supplemented at the other end and not solely by Toolcy Street. So far as the T’ooley Street merchants were concerned, they would obtain the most profitable results by co-operating with the New Zealand Government, and the Government had not had word that they were unwilling to do so. They would have to carry out their marketing in accordance with the Government’s intentions. Then they would be paid as well as 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 vrith the British Government. Under the new methods of marketing it would be possible for him to say to the British Government: “We can produce 150,000 tons of butter. We have taken every step to ensure its uniform and maximum quality. We can let you have it at a minimum price according to what the fanner ought to be paid for the work of producing it, and wo agree to take from you goods to the value of what wc receive for our butter. You take this £15,000,000 worth of butter from us and wc will in turn, after the provision for interest and for the redemption of the debt we owe you, use the money in Britain for buying what we want.” Those principles, said Mr Nash, could be in being among all countries within the next ten years. “That may mean,’’ he added, “that our produce will be taken nowhere else; but I won’t worry. It may mean we will have to take all our cotton goods from Britain and not, say, from Japan.” If there are products that might be brought into being in New Zealand and that were not wanted by Britain, then the Government would make bilateral agreements with countries that would take those products. Going on to speak of his conception of the world af> one economic unit, Mr 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, thet wo must make bilateral agreements with those countries. He had beeu asked waether, if prices realised weie greater than the guaranteed prices, the excess would belong .to the farmer or to the Government. As Mr Savage had said, the Government did not want to make a profit out of any industry. If there were an excess it would be credited to the dairy industry account, and used for the benefit of the industry. Why not a bonus? he had been • asked. There would be no bonus. He could say, however, that the excess, if any, would not be used

without consultation with the representatives of the industry. "Under the policy of the Government no section of the community would benefit at the expense of another section. The Government was trying to ensure that every man on the land, every man on the waterfront, and every clerk in an office was jjaid a legitimate share of the wealth he brought into the country. In answer to a question which deal; 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, Air Nash said the Government was acting in the matter towards ensuring that farm labour would be available and the rates of pay had already been determined. It meant if work were not available on public works and farm labour were available, men refusing to accept farm work would not be paid sustenance.