The Northern Advocate Daily SATURDAY, MAY 30, 1936. GUARANTEED PRICES

Northern Advocate, 30 May 1936, Page 6

The Northern Advocate Daily

SATURDAY, MAY 30, 1936. GUARANTEED PRICES

Registered for transmission through the post as a Newspaper.

Though we have never been able to understand how the guaranteed price,, and all that hangs up on it, are to be operated to the ultimate benefit of the Dominion as a whole, we have urged that, the country being definitely embarked upon the great experiment, it is the bounden duty of everybody to assist, rather • than hinder, the successful development of the policy. For that reason we have regretted the efforts of some well-known opponents of the Government’s produce marketing policy to create unrest and discontent in the primary industry. What is the value of such action? Surely it would be better to try to make the Government ’s task easier. It should be remembered that there are at least two sides to every question, and that the Minister of Finance has presented, in support of the Government’s policy, a considerable body of argument which even strong opponents are not prepared to throw aside with contumely. We do not recede from our previously expressed opinion when we quote the editorial opinion of the “New Zealand Dairyman,” as published in the current- issue of the journal, but we feel that it is only fair, in the face of the criticism to Which the Government’s policy is being subjected by the president of the Farmers’ IjJnion, for 1 instance, that the other side of the question should be stated. The “Dairyman” expresses the opinion that much of the criticism voiced in connection with the Primary Products Marketing Bill would have beejn avoided had the Government seen fit to announce the actual price to be paid for butter and cheese exported during the coming season, but it believes that the Government had important reasons for postponing the announcement of what, undoubtedly, is the most vital point in the Act. That there will be an increase of wages and costs both on farms and in dairy factories is taken for granted by the ‘ ‘ Dairyman, ’ ’ which evidently thinks that the Government is to take this fact into consideration when fixing the “economic” price, and therefore wishes to wait as long as possible (which is August 1), in order to obtain the fullest data, before announcing the price. The paper goes on to say that in view of the fact that the Government has given every proof of good faith and, with the exception of stating the exact price to be paid, has taken the producers into its fullest confidence, it is difficult to understand the reason and motive of some of the criticism levelled , against the legislation. “There are two tremendous advantages which producers in genei*al appear to ignore or fail to appreciate. In the first place, there is not a shadow of doubt that the guaranteed price will be considerably better than the price producers would have obtained in the open market; and, secondly, from the first to the last week of the season every dairy- farmer will know for a certainty the price he will receive for his butterfat. These two advantages are so outstanding that they should check a,hy tendency to indulge in any kind of carping criticism. ’ ’ If there is any inclination towards criticism, the “Dairyman” continues, it is not to doubt the good faith of the Government in its profession to help the dairyfarmer, nor to attack the working details of the Primary Products Marketing Act, As far as it is possible to see at this stage, both are beyond reproach and certainly above suspicion. “As to the economic soundness of the principle underlying the legislation, however, only the future can tell. Notwithstanding the statement made by the Hon. W. Nash, the measure constitutes a revolutionary experiment, on a scale and of a nature never attempted by any Government outside of Russia. This, in itself, does by no means condemn it. In Anew of the precarious position of the New Zealand dairying industry one may almost be justified in regarding it as an emergency measure. But, however one may regard it, it is undoubtedly the most effective means of coming to the rescue of a very hard-pressed industry.” There will not be unanimous agreement with this statement, but we feel that Mr Nash would be helped in the difficult task he has set himself if those with whom he must negotiate in Britain realise that he lias a solid, rather than a divided, industry behind him.