Guaranteed Prices

Manawatu Times, Volume 64, Issue 171, 22 July 1939, Page 9

Guaranteed Prices

(To the Editor.) -Sir, —There have been such a lot o.t confusing statements made about the above matter that I have been asked to set out clearly the attitude of the union on this matte;?. As your readers will recall the annual Dominion Conference of the union was recently held in Wellington, and at this meeting the official attitude of the union was expressed after a very full discussion in the following resolution: — “That the standards and conclusions ! as recorded by the 1938 Guaranteed Price Investigation Committee be endorsed and the conference protests against the arbitrary alteration of such standards and prices by the Minister. That this conference is unable to agree that the prices fixed by the Government for the current season should be continued for the 1939-40 season. That this conference is of the opinion that in' order to do justice to the producer and to give effect to the provisions of the Primary Products Marketing Act the price to be paid for the 1939-40 season should be the price recommended by the 193 S Advisory Committee, plus ascertainable increases in costs since the date of the .committees report. However, in conformity with the union’s policy of reduction of costs, and in order to co-operate with the Government this conference supports the offer made by the Dairy Board Dominion Conference to forego any increase in costs and to accept for the 1939-40 season the standards and prices recommended by the 1938 Advisory Committee.” Since the conference passed the above resolution the Prime Minister remarked that he would give consideration to abolishing the guaranteed price principle and Mr. Mulholland, the Dominion president of the union, indicated that personally he would welcome control being left in the industry’s hands. It is upon the remarks of these two men that the misapprehension has arisen, but 1 can assure readers that in no way do these remarks represent the attitude of the union on this question. Our official attitude is clearly shown in the above resolution. There is one point which should be borne in mind and that is in regard to the estimated deficit of £2,000,000 in the dairy industry accounts. If the guaranteed price is carried out properly this deficit will have to bo paid for from future sales of produce, and although no official indication has yet been given as to how it will be dealt with, farmers should keep this in mind. In conclusion might I emphasise the point that the union is not antagonistic to the guaranteed price, but is insisting that the spirit and provisions of the Act be carried out. In doing so it is standing firm for an adequate remuneration for the producer, and the attitude being adopted is consistent with that of any union which does not receive the remuneration recommended by the Arbitration Court.—l am, etc., L. I. PLIMMER. Manawatu Provincial Secretary, N.Z. Fanners’ Union. July 21, 1939.