PRICE GUARANTEE

New Zealand Herald, Volume LXXV, Issue 23145, 17 September 1938, Page 11

PRICE GUARANTEE

THE SPANISH PROJECTCOMMENT IN LONDON COURSE OF NEW ZEALAND PLAN [prom our own correspondent] LONDON', August 25 "The New Zealand dairy marketing scheme provided us with our model," said Don D. Fernandez Shaw, Spanish commercial attache in London, on his return after establishing the machinery for Government marketing and guaranteeing of prices for primary producers in Republican Spain. The scheme, which originally applied to onions only, has been extended to pepper, citrus fruits, oranges, grapes and other fruits. "Republican Spain, ]ik'dr«New Zealand, is dependent upon satisfactory prices for hor primary exports," said Don Fernandez. "All our produce now comes under the ownership of the Government, which pays tho farmer a fixed price within 14 days of delivery of the product. As the producers are represented on the controlling boards they have ample say in tho fixing of prices. Whatever the.result of the war, it is probable that, as their control is dictated by economic rather than political reasons, the marketing boards j will be retained." - Attention is drawn by the city editor of the Evening Standard to the course taken by the guaranteed price system in New Zoaland in commenting on the Spanish project. "In New Zealand some confusion has arisen regarding the future of this fixed price system," he states. "When it was inaugurated it was clearly intended that in years of? world prosperity the Government should set aside the difference between the export price of farm products and the amount paid to farmers. j "By this means a fund could be created' which would help to bridge the gap when export prices fell below; those paid to the producers. Last year, however, the New Zealand farmers objected to this retention, of profits, with the result that a large portion was distributed in the form of a bonus and only a small portion retained as a reserve against bad years. "Having once departed from the original plan the New Zealand Government may find it almost impossible to retrace its steps. It will, therefore, be interesting to see what measure of success attends the efforts of the Spanish administration in this direction."