PURCHASE PRICE

New Zealand Herald, Volume LXXIV, Issue 22822, 1 September 1937, Page 15

PURCHASE PRICE

POINT CLEARED UP UNSHIPPED CONSIGNMENTS THE NEW RATE TO APPLY [by TKIjKCIt.VrH—SI'ECIAT/ hkporter] WELLINGTON. Tuesday A misunderstanding which has arisen regarding the rate of payment for butter and cheese produced for export before the close of the Inst dairy season on July 31 but not shipped from New Zealand after that date is cleared up as the result of a statement made by the Minister of Marketing, the Hon. W. Nash. In announcing, the original guaranteed price in his Budget last year the Minister stated that the rates fixed for that season would apply to butter and cheese made between July 31, 1936. and August ■ 1, 1937. However, the wording of the Primary Products Marketing Act, which embodies the legislation governing the guaranteed price procedure, suggested that the prices should apply only to produce actually shipped before August 1 this year. Under the ruling given in the Budget, butter and cheese produced for export toward the close of last season but not shipped before August 1 could have been purchased by the Government at the old rate of 12 9-16 d per lb. The actual position, as explained by Mr. Nash, 'is that the new season's f.o.b. purchase price of 13$ d per lb. will apply to all butter and cheese exported after July 31 of the present year, irrespective of whether it was produced this season or last season, and will continue until all butter and cheese made up to July 31, 1938, has been exported. Toward the end of last month, when it was realised that the guaranteed prices for 1937-38 could not be announced by the start of the. new season, the Hon. W. Lee Martin, who was then acting as Minister of Marketing, made a statement to the. effect that in the interval butter and cheese purchased for export would be paid for at last season's guaranteed price without prejudice. It is now clear that the balance of last season's production which was not shipped before August 1 will be paid for at the new and higher rate fixed loir the current season. FIXING THE RATE NEW METHOD URGED AN INDEPENDENT TRIBUNAL "The fixation of a guaranteed price for dairy produce should be done by an independent tribunal agreed to by the elected representatives of the dairy industry as well as Government nominees," stated a resolution passed at a meeting of shareholders and suppliers of the East Tamaki Co-operative Dairy Company, Limited. The resolution also affirmed- that the price should bo fixed by the tribunal from tho evidence placed before it and that the whole of the proceedings should be open to the press. Tho meeting supported the principle that tho price paid to the dairy farmer for production should bo such as to enable him to pay competitive rates of wages, allow him reasonable interest on the capital invested in his farm and stock, enable him to meet all his costs, including tariff, and allow him sufficient remuneration forthe services lie rendered. "Wo believe the policy of any Government should be directed along these lines if the future of New Zealand as a primary producing country is not to be irrevocably impaired." further stated tho resolution. "In the opinion of this meeting this vital policy can best bo attained by reduction in the costs of production, together with reduction in the tariff barriers on a reciprocal trade basis; alternatively by the stabilisation of our currency to achieve payment to tho farmer on the lines already set out. "The principle of a guaranteed price which arbitrarily fixes farmers' returns lor a definite period without restricting costs at the same scale for the same period is disastrous, and any price so fixed which does not give effect to the ideals of adequate compensation for services rendered and capital involved is a violation of the fundamental principles of .British justice. We believe that the truest expression of democracy lies in the co-operative control of the management and marketing of an industry such as ours by the duly elective representatives of the industry." The meeting also passed a resolution vigorously protesting against the remits passed at a conference at Hamilton being accepted as representative of the opinion of the dairy farmer, as it was convened prior to the annual suppliers' meeting which alone could give a definite lead to the wishes of the suppliers.