PRICE SYSTEMS

New Zealand Herald, Volume LXXV, Issue 22955, 5 February 1938, Page 17

PRICE SYSTEMS

RIVAL ADVOCATES DEBATE IN HAMILTON GUARANTEE OR COMPENSATORY The respective merits of the guaranteed price for dairy produce, as worked out by the Government, and the compensatory price, as advocated by the Farmers' Union and other organisations, will be debated at a public meeting in Hamilton on Monday evening by the Hon. W. Nash, Minister of Marketing, and Mr. J. H. Furniss, a Ruawaro farmer, a leading advocate of the compensatory principle. An accepted definition of the compensatory price is that it should be sufficient, (1) to enable the farmer to pay competitive wage rates, (2) allow him reasonable interest on the capital invested in farm and stock, (3) enable him to meet the increased costs imposed by legislation, including tariffs, and (4) allow him a remuneration commensurate with the services rendered to the community and with that obtained by other sections rendering equal service. The Farmers' Union still believes that the desired result could best be reached by complete free trade, but, despairing of that ideal, has adopted the compensatory price as the next best system. It agrees with Mr. Nash in his statement that "payment of farmers must be measured by the same tape as is used to measuro the payment to others who render equal service." It does not agree, however, that the guaranteed price is producing tho desired result and puts forward the compensatory price instead. The debate between Mr. Nash and Mr. Furniss is therefore of considerable interest, although many farmers do not favour either scheme. Some would wish to be left free to sell their own produce, accepting the market, and others would ask no more than a guaranteed minimum price, such as export fruitgrowers receive. Hence a debate on only two aspects of tho question of produce prices cannot be decisive or even complete. Mr. Nash will take part in a "round table" conference with representatives of the Farmers' Union and dairy companies at Morrinsville on Tuesday afternoon. The object of the meeting is to give Mr. Nash an opportunity of explaining the Government's policy relating to payment and marketing of dairy produce.