DAIRY PRICES

New Zealand Herald, Volume LXXIII, Issue 22392, 13 April 1936, Page 8

DAIRY PRICES

GUARANTEED SCHEME EARLY APPEARANCE OF BILL SPECIAL BRANCH DEPARTMENT PRODUCERS' BOARD POSSIBLE [by telegraph SI-ECIAL reporter] WELLINGTON, Sunday Although the Guaranteed Price Bill will probably be one of the first to bo introduced in the House of Representatives after the Easter recess, the vital question of tho price to be fixed for dairy products is not being disclosed. However, the statement made by the Minister of Agriculture, the Hon. W. Lee Martin, at Matangi, that the price would be paid on the finished product and not at so much per pound butterfat, is regarded as being of special significance.

Several details of tho Government's plans have already been disclosed. The Prime Minister, Mr. Savage, announced some time ago the proposed setting up of a special dairy industry account for the financing of the guaranteed price scheme, and possible methods of finance were revealed in the provisions of the Reserve Bank Amendment Act. These factors have suggested that a special departmental branch will be charged with the duty of administering the whole of tho scheme.

Tooley Street Marketing The Minister of Finance, the Hon. W. Nash, who has co-operated with Mr. Lee Martin and a committee of experts in examining the various proposals for the scheme, has already made it clear that guaranteed prices will not mean the end of Tooley Street marketing, and that the distributive outlets offered by the best existing firms will be utilised to the full. However, the Minister has emphasised that thero will be a check on speculative interests both in New Zealand and overseas.

Another point made by Mr. >»ash is that the Government wishes to act in harmony with the Dairy Board, although possibly a future development will be the setting up of a board representative only of producers, with wide powers to deal with local problems and advise on overseas marketing. Making Close Contact

A further possibility is the strengthening of the staff of the High Commissioner's office in London in order that the Government, as the sole owner of dairy produce, may maintain the closest possible contact with distributing firms. The presence in London of Dr. R. M. Campbell, economic adviser to the High Corftmissionerj is already regarded as being extremely valuable in this respect. The report of the expert committee which has advised the Government on guaranteed prices has been completed. It is so voluminous that a summarj has been prepared for the benefit of members of the Cabinet and others. However, it is understood that the bill which will give effect to the Government's policy is not yet absolutely complete. ________