GUARANTEED PRICES

Nelson Evening Mail, Volume LXVI, 21 February 1935, Page 6

GUARANTEED PRICES

EFFECT ON EXCHANGE RATE (By Telegraph) (From 'The Mail’s” Parliamentary Reporter) WELLINGTON, This Day. The Labour Party’s plan for guaranteed prices for the New Zealand farmers was criticised by Mr W. A. Bodkin (Government, Otago Central) during his speech on the second reading of the Mortgage Corporations Bill in the House of Representatives last night. Mr Bodkin said that the Labour Party had issued a pamphlet advocating a guaranteed price of Is 3d per lb. for butter. This was to be ensured by the issue of irredeemable paper money. The pamphlet had pointed out that, although the butter might be sold at (kl per lb overseas, the additional 9d would not be lost, as the goods which were purchased for 6d overseas would be sold for Is 3d. Mr Bodkin said that the Labour Party’s policy would mean the raising of the exchange rate by 150 per cent, and it was hoped that the workers and civil servants would note that attack on wages and salaries. The guaranteed price scheme was absolutely unsound. The Minister of Finance had been wise in making provision at the outset for a working margin of 1 per cent. That margin would ensure a sound basis for the institution. By bringing forward the Bill, the Government was ensuring for solvent men the preservation of their assets. The Minister of Finance realised the true position of the farmers and was not being sidetracked by irrelevant issues. If the farmer was going to rehabilitate himself, it ”’us essential that he should obtain his money on the niost favourable terms.