FARMERS WARNED

New Zealand Herald, Volume LXXV, Issue 23123, 23 August 1938, Page 12

FARMERS WARNED

GUARANTEED BATE

PROSPECT OF "CUT" MR. F. W. DOIDGE AT OHAKUNE [by tklf.grath —OWN ' correspondent] OHAKUNE. Monday "Should we run into a depression while a Socialist Government is in power, the farmer will he the -first to suffer. The guaranteed price will not save him," said Mr. F. W. Doidge, who addressed a public meeting here to-night in support of Mr. C. A. Boles, the National candidate for the \Vaimavino seat. "Mr. Forbes lins told'us, n continued Mr. Doiclge, "that in 1931, when the last slump occurred, the lroasnry ollicials went to him and said ho was £9,000.000 short of the sum required to run the State. Mr. Forbes had £15,000,000 with which to meet commitments of £'21,000,000. "J.6-day we liavo a ' Government which has committed us to an expenditure for tho year of £35,000,000. On top of that we have a social service scheme which is to cost us £17,500,000. If revenue fell to £15,000.000 in the last slump, how shall wc find £45,000,000 in the next.? ""When Mr. Savage had to retrench, where will he begin? Ho is not likely to cut-the benefits of his alluring social service scheme, ho will hesitate to interfere with the 20,000 men recciv ing £20,000 per day on public works, and it is exceedingly unlikely that he will disturb the peaceful pursuits of the 35,000 men who last year took £4,500,000 out of the unemployment fund.

"A drop of a penny a pound in tho price of butter represents a loss of approximately £1,000,000 sterling to tho Dominion. With tho guaranteed price schenio in operation a setback on the London market could involve the Government in a-loss of millions. The Minister has authority, under a section of the Primary Produce Marketing Act, to alter by Order-in-Council tho guaranteed price at any time, have more than once argued that tho farmer, because he possesses a home, and for other reasons, is better off than the town dweller. Should a recession come, we can exjicct a revival of this argument, but the section of the Act which gives tho Minister authority to alter tho guaranteed price will present an opportunity of making the first of tho 'cuts.' The farmer who believes the guaranteed price ensures security, fools himself."