Minister's Answers

Northern Advocate, 1 December 1939, Page 6

Minister's Answers

The conference this afternoon received the following written reply from Mr Nash to the questions put to him the day before;

“Question 1: As the 1938 Advisory Committee unanimously recommended standards and prices to the Minister, this conference respectfully inquires on what date the Minister altered both standards and prices?

“Answer: The basis of the alteration was set out in the statement made announcing the prices for butter and cheese for the 1938-39 season.

“This statement was quoted in full in the annual report of the Marketing Department for the year ended July 31, 1938.

“The Government realised that the report of the committee was entitled to be given very careful consideration, and this was done.

“Qualified Recommendation”

“In my statement announcing the prices for the 1938-39 season, I drew attention to the fact that the recommendation of the committee was a qualified recommendation, because in the report reference was made to certain relevant factors which had not been fully assessed by the committee, but which in its opinion, should be considered by the Government in the determination of factors. “These factors were duly considered with the whole of the evidence on standards and prices, as given to the 1937- and 1938-39 committees. “In dealing with standards, the 193738 committee reported that 62501 b of butterfat was the production per adult male unit of labour; the 1938-39 committee took 57501 b as its standard. “The Government, after careful inquiry and examination of the evidence, considered that a fair standard was 60001 b and the price was determined accordingly. Increased Costs “Question 2: If the price for the 1938- season as fixed by yourself, was reasonable to cover costs of production in your judgment, will you indicate how farmers’ increased costs incurred for the 1939-40 season are to ■be provided for?”

“Answer: During my address to the conference in April last and at subsequent conferences, 1 announced that the Government would, as circumstances warranted, fully examine the effects of the major rises in costs. “As stated yesterday, the Government has already- been considering costs of fertliser, with a view to covering added costs, and, in particular, to meet the requests of the United Kingdom for the maximum production.

“When this examination is concluded, I willbe pleased to convey to you the procedure the Government proposes to follow.

War Conditions

“In general, the major items of increased cost should be covered in the price, but in the present war conditions it is not possibel to pass on all additions to costs.

“The Government will, however, use every possible endeavour to ensure that the effect of increased prices shall be equally shared by ail sections of the community.

“It should be noted that for the 1938-39 season the average payout of butter factories was .319 d per lb of butterfat in excess of the basic payout. “The cheese factory payout was .18d per lb of butterfat in excess of the basic payout. “Costs, as you are aware, depend to a certain extent on output, and during last season exceptional weather caused lower production, and consequent higher costs on farms and in factories.

Set Price Principle

“Question: The conference desires to ask if it is still an essential principle of the guaranteed price scheme that farmers shall receive a price which will cover the cost of production?” “Answer; With the essential qualification that all forms of our social and economic life may be affeced by the war, there is no intention to alter the principle of section 20 of the Marketing Act. “I will bring the remaining subjects raised in various speeches before the Government for its consideration at the earliest possible moment.”