MARKETING DAIRY PRODUCE

Nelson Evening Mail, Volume LXIX, 8 February 1936, Page 7

MARKETING DAIRY PRODUCE

BOARD TO RETAIN RESPONSIBILITIES

FIXING GUARANTEED PRICES

Ijjj Telegraph— Prenß Association]

WELLINGTON, This Day,

Although no decision has yet been made by the Government as to the guaranteed price of New Zealand dairy factory suppliers of butterfat, it appears'to be definitely certain that the rate will be rather less than Is 3d per lb. It is true that 15d has been men-., tioned during official and other discussions on the vital question, but it is generally agreed that such a level represents the ideal of the “Left Wing members of the Government Party. The moderates seem to be more inclined to fix the price nearer one shilling than 15d, it being contended that a revenue of land value inflation must not be stimulated, to. say nothing at ail about other effects, including .The interests of consumers of dairy produce. Meanwhile, it is pointed out that the question of guaranteed prices for dairy produce is under investigation bv a committee of departmental experts, and that a final decision may not be reached during this month. Indeed, it is. doubtful whether any statement as to price will be made before the introduction of a legislative measure giving effect to the Government's policy. As to the possibility of the Government assuming definite control of the marketing of dairy produce, it is gathered that there is no likelihood of _ any drastic interference with the existing system. The prospective new control is expected to be more administrative than of a machinery nature. There is no official talk about eliminating the Dairy Board. In • all probability it will act as the commercial agent of the Government, but giving effect to the Government's policy rather than purely to its own. Such, at any rate, is the trend of political discussion, but it cannot be asserted that it is the whole policy of the Government. 9 STATEMENT BY PRIME MINISTER Following on the announcement in “The Dominion” as to the prospect of Government control of the local and overseas marketing of dairy produce, the Prime Minister, the Hon. M. J. Savage, made the following statement: — “The Dairy Board is working with us, and will continue to work with us. Existing channels and existing institutions will be used as far as is humanly possible, but we can’t afford fo stick in the old rut. We must try to do better in Britain. There is nothing in our minds that is going to lessen in any way our responsibility to the board. It still has a job to do.”

The Prime Minister said that the Minister of Finance, the Hon. W. Nash, had a committee working on the details of the payment of guaranteed prices, which was going ultimately to land the Government with the ownership of the produce. “But the board is still there, and its responsibility for the marketing has not got any less; it has become greater, if anything,” he said. “The Government has always been interested in securing the best price for the country’s produce, but we have undertaken to pay an economic price to the dairy farmer. He will be paid in New Zealand, and it will be obvious to anyone that our responsibility has not become less. - We still have to market' the exportable part of the dairy produce which has been purchased and to cooperate with the board and its officers here and in London. We have an added responsibility in getting the very best price obtainable.

GOVERNMENT’S POLICY TO BE CARRIED OUT “We are not relieving the board of any of its responsibilities, except that it would be fair to the board to say that the Government’s policy will be the policy that will be carried out. The idea of the board in the past to get an economic price by orthodox methods for the farmers goes in favour of a guaranteed price. “In the marketing of the surplus produce, the farmer is paid immediately, but the job of selling and marketing remains. The board has to do the job, and the Government has to help it.” Mr Savage said that the actual price to be paid under the Government’s guaranteed price scheme had yet to be decided upon, but it was bound to be such as to keep the dairyfarmer doing his job. That left the responsibility still with the board for the marketing of the export, and it increased the responsibility of the State, which, in its own interests, would have to see that the best price was obtainable on the overseas market. “It doesn’t destroy the board, or take away its resnonsibility for marketing with the object of getting the very best results,” he said. CIRCULAR ISSUED BY BOARD That the Dairy Board will have full details of the Government’s guaranteed price scheme for its next meeting on 4th and sth March, is made clear in a circular which the board issued to factories yesterday. It is the intention of the board to make these details available to factories as soon as possible after the meeting. The circular issued to factories reads: “The board has been in consultation with the Government in connection with local and export marketing. The policy of the Government to pay guaranteed prices for butter and cheese is now being organised in co-operation with expert members of the industry. In the meantime the proposals previously submitted to you are held in abeyance until the details of the Government's policy have been communicated to the board. It is anticipated that these details will be available some time before the next meeting of the board and on receipt they will be communicated to all factories. ”