GUARANTEED PRICES

New Zealand Herald, Volume LXXII, Issue 22191, 19 August 1935, Page 8

GUARANTEED PRICES

Guaranteed prices is the bait chosen by the Labour Party in angling for the farmer's vote at the forthcoming general election. Like Mr. Savage's "usehold" land policy of a previous election, the latest scheme is not easy to explain in terms a practical man can underI stand. He is inclined to ask questions as to how it would work in particular cases, showing a most inconsiderate curiosity, for the Labour bubble is apt to burst at the prick of reality. For the benefit of Te Aroha electors, however, Mr. Walter Nash has attempted to show that guaranteed prices for New Zealand produce would work. To assist his demonstration, he quoted schemes in ; other countries, although he does not seem to have pointed out that these applied to particular commodities and not to all farm produce. Had Mr. Nash cared to look for an i example nearer home, he could have found it in the sliding scale of duties for the protection of Canterbury wheat growers. Perhaps it was discreet, however, not to quote such an example to an audience of wheat and flour consumers, or pig and poultry farmers. It was no doubt more politic to import illustrations from overseas. Mr. Nash spoke of the Australian sugar scheme. No doubt that was most advantageous to the cane growers until the artificial domestic price of sugar was capitalised in higher prices for sugar lands. Meanwhile the Australian consumer had to pay, and still has to pay, prices much above competitive rates. The excess annual cost to Australia, compared with prices ruling in New Zealand, has been estimated at £4,000,000. That is only one commodity. The Australian butter scheme has also meant exploiting the consumer, so that the consumption a head is considerably, lower than in New Zealand and the export surplus has increased with amazing speed. Mr. Nash also mentions some of the British schemes, but does not speak of the dissatisfaction of large sections of producers with the milk and bacon schemes, or what control of these commodities and of potatoes has cost the British consumer. Neither is he reported as noting the serious reactions the milk scheme has already had on New Zealand dairy produce. Experience shows that a guaranteed price, even if it can be maintained, is a twoedged weapon. For there are two parties to any price. If the producer receives an initial advantage, it can only be at the expense of the consumer—as workers should note—and in the long run he will probably lose more than he gains by the slackening of demand.