A COMPENSATING PRICE

New Zealand Herald, Volume LXXIII, Issue 22403, 27 April 1936, Page 15

A COMPENSATING PRICE

Sir, It will doubtless be a relief to the Government to know that the fai mors have at last come to a unanimous agreement as to what they want to assist and restore their industry. A combined meeting of directors representing 40 factories in the South Auckland district adopted the following resolution:—"That the only equitable basis of payment for primary produce is to pay the producer a compensating price to cover the difference between the price level in the country in which his goods are marketed, as compared with the price level in the country in which his goods are produced." This resolution is in complete agreement with the proposals made by the president of the Farmers' Union, Mr. Poison, M.P., on behalf of his union, to the Hon. the Prime Minister and the Hon. the Minister of Finance, some few months ago. By this the farmers desire that tho exchange value of their products be fully guaranteed to return to them, either in New Zealand, where they are produced, or in any other country where they are sold, the full exchange value in the goods and service of other producers. That is a perfectly clear, equitable and just demand, that would return to the farmers of New Zealand at least an additional advantage of 15 per cent on their exchange. They are to be congratulated upon their wise and businesslike decision. To achieve this end they must bo guaranteed that all units of weights, measures and values that are applied to the goods they produce in New Zealand shall never be permitted to fall below the units of weights, measures and values used in other countries to weigh, measure and value tho goods that come to them in exchange for what they send away. For instance, they demand that the unit of value that values the products of their farms in New Zealand shall be guaranteed to equal at all times the sterling pound—that unit of value that values all goods sent to New Zealand in exchange for what the farmers export —and when we remember that tho primary industry exports 85 per cent of its production, the benefit to those in the industry would be very great. The resolution also demands a removal of all other barriers to exchange. This the farmers of New Zealand have never enjoyed. This resolution, so unanimously agreed upon by the primary industry, will be welcomed by the Minister of Finance, as it not only makes his task easy, but will save liim £2,000,000 a year on his overseas commitments. The farmers are to be congratulated, not only for improving the prospects of their own industry, but also for rendering great assistance to their country. J. Hislop.