DAIRY PRICES

New Zealand Herald, Volume LXXIII, Issue 22538, 1 October 1936, Page 16

DAIRY PRICES

DISSATISFIED FARMERS STATEMENT BY MINISTER REPLY MADE TO CRITICISM [bt telegraph—own correspondent] \VH ANO A REI, Wednesday Further discussion of the guaranteed price for dairy produce took place yesterday at the quarterly meeting of the Whangarei sub-provincial executive of the New Zealand Farmers' Union, when a lengthy letter was received from the Minister of Finance, the Hon. W. Nash, iia reply to a number of resolutions forwarded to the Minister from various branches in criticism of the guaranteed price. After referring to tho promise made by the Prime Minister, Mr. Savage, during the election campaign that the price would bo based on the amount received over the past eight to ton years, Mr. Nash said: " You will admit that in choosing the ten-year average the Government gave a generous interpretation of the Prime Minister's promise; but in addition there was added to this ten-year average an amount to meet increased costs, so that it was estimated, on the basis of last season's production, that the Government, in fixing tho jirice at a payout for an efficient factory of Is Id per lb. of butter-fat and cheese would be paving to the dairying industry for butter ami cheese an amount which would be £1,413,650 above the amount necessary if the eight-year average had been taken. If the nine-year average were taken the industry would have received £1,082,000 less; with the tenyears average tho industry would receive £562,500 less. It will therefore be clear that the dairy industry will receive on the basis of last year's production £562,500 more than the best of t]ie averages taken. The .Sales: Tax " The Government quite definitely allowed for an amount for increased costs," continued the Minister. " The average was not a weighted average, nor was it an average of averages, but a true average. 1 cannot understand the suggestion that the Government has not fixed the guaranteed price in accordance with its election promises, unless this means they have fixed tho price greater than was promised by the Prime Minister

" Regarding the sales tax, the majority of goods the farmer needs to carry on his farming is exempt from the sales tax or customs duties. However, the Government intends to reorganise our taxation system, so that its incidence will be more equitable and more in accordance with ability to pay; but the organisation and administration machinery necessary to do this cannot be worked out in tho space of a few months, at the same time maintaining the revenue necessary for carrying out the Government's aim." Increased Costs Mr. E. H. Johnson said the farmers were definitely promised more than they had received! Although not definitely stated as the fixed amount, the price of Is 3d was mentioned by Labour candidates during the election campaign. Labour costs had increased by ahout 100 per cent as the result of recent legislation. Mr. J. C. McKay said that the Government should have a reasonable chance to make good. The farmers were responsible for the Government's being in office and they should be prepared to give the Government an opportunity to carry out its promises. The president, Mr. A. Briscoe Moore, said the farmers were led to believe they would get fair treatment, but they had not been placed in a fair position in regard to increased costs. He thought they won it] 1 ; be wise to concentrate on compensating prices and costs, and not on criticising how the guaranteed price was arrived at. Nothing could be done to improve the position this year.

" PICKED OUT TOR TORTURE " COMPLAILNT FROM TARANAKI [Br TELEGRAPH —OWN CORRESPONDENT] NEW PLYMOUTH, Wednesday Complaint against Government interference with private control of dairy produce was made by the retiring chairman, Mr. T. A. Winks, of Ararata, at the annual meeting of the Federation of Taranaki Dairy Factories. Although Mr. Winks, who was fbrmerly a member of the Dairy Board, asked for suppbrt for the guaranteed price plan, he protested .that the federation's offer of assistance had been disregarded by the Government,' which, lie said, had hardly a dairy man in it. "I do not know why the dairy industry should be picked out for torture," said Mr. Winks. "It seems that every so often some 'smart Alec' arises and sets out to reform the dairy industry. They leave our sister industries, meat and wool, alone, and they go -ahead satisfactorily." . He thought the guaranteed price system would break down. "We offered our services to the Government ait a federation of factories producing £3,000,000 to £4,000,000 worth or produce," added Mr. Winks, "but beyond acknowledgment of our letter we have heard nothing more. There is hardly a dairy man in the Cabinet, yet they take it upon themselves to introduce this system. If it had not been for the confidence felt in Mr. G. A. Duncan, who has been associated with us in the past, I do not think we would have taken this thing quietly. We feel, however, that while Mr. Duncan is associated with the marketing our interests will bo looked after."

Nevertheless, Mr. Winks, concluded, it was the duty of suppliers to put their confidence in the Government and to try hard to make the scheme a success.

BASIS OP CALCULATIONS . EXPLANATION BY MR. NASH [BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Wednesday The procedure adopted in determining the guaranteed price for dairy products for the current season was explained by the Minister of Marketing, the Hon. W. Nash, in the House of Representatives to-day, in answer to a qnqsition by Mr. W. J» Broadfoot (Opposition —Waitomo). The point raised by Mr. Broadfoot was that a weighted average gave a price of 115s 6d per cwt. f.0.b,, whereas a price average gave a figure of 123s lid. "The guaranteed price was not based on the year' book figures," replied the Minister, "but on the butterfat payout return mado by dairjy factories to the Government statistician."