Dairy Industry And Price Fixing Topics

Northern Advocate, 16 July 1938, Page 8

Dairy Industry And Price Fixing Topics

F. U. Has No Plan For Compensated Price Leaves It To State

[Per Press Association. Copyright .l WELLINGTON. This Day. “nnHE COMPENSATING PRICE IS PRINCIPLE. NOT PLAN,” SAID THE X DOMINION PRESIDENT OF THE NEW ZEALAND FARMERS’ UNION, MR W. W. MULHOLLAND, YESTERDAY, WHEN SHOWN A REPORT OF THE RECENT ADDRESS TO THE NELSON BRANCH OF THE UNION BY MR S. J. E.' CLOSEY. THE REPORT STATED THAT THE BRANCH “ENDORSED THE COMPENSATED PRICE PLAN AS OUTLINED BY MR CLOSEY.” Mr Mulholland said he could not find in the report of Mr Closey's address anything to justify the use of the word “plan” rather than “principle,” The speaker had stated the cause of injury, namely, that the New Zealand farmer was selling his goods overseas at the lowest world price level, but was buying his requirements in New Zealand on a high protected price level. He had said the gap must be closed, and with this principle the New Zealand Farmers’ Union was in perfect agreement.

“The address has offered four < ways in which the gap might be closed,” said Mr Mulholland —“reduction or tariffs, reduction of taxation, reduction of wages, and increasing the farmers’ reward. The attitude of the New Zealand! Farmers’ Union ivas to leave it to the Government of the day to decide how the gap should be closed. The general principle was clear and the union contented itself with stating it. Summing-up. “Summed-up, the union’s attitude is as follows,” said Mr Mulholland. “A policy of reducing costs is the soundest way in which the economy of New Zealand can be kept stable, and by which the farmer can be enabled to carry on his business properly. If the Government is not prepared to keep costs and prices in proper relationship by reducing costs, the farmer should receive a price compensated in such a way as will adjust this relationship. The compensated price is not to be brought about by a credit issue or by any means which will have the effect of inflating prices. The Farmers’ Union puts forward no plan by which this end is to be achieved, but leaves that to the Government, subject to the qualifications exnressed above.”