NEW DAIRY PRICES

New Zealand Herald, Volume LXXV, Issue 23150, 23 September 1938, Page 13

NEW DAIRY PRICES

WAIKATO DISAPPBOVAIJ CRITICISM OF GOVERNMENT FARMER LEFT WITH BURDEN RETURN BELOW LAST YEAR [from our OW>" correspondent] HAMILTON, Thursday Dissatisfaction with the guaranteed price of 14.89 d per lb. for butter and 8.42 d per lb. for cheese was unanimously expressed by members of the South Auckland Dairy Board, which met at to-day. Strong disapproval of the action of the Minister of Marketing, the Hon. W. Nash, in altering to a lower level the standards of 15.605 d per lb. for butter and 8.770 d per lb. for cheese recommended by the Guaranteed Prices Advisory Committee was also voiced by the board. "Members of the committee approached the task of setting standard figures with a great sense of responsibility toward the producers,", stated Mr. W. Marshall, a member of the advisory committee. "The committee's work was to examine thoroughly the problem, one which has never been properly investigated in New Zealand before. I would not say even now that the last thing has been done in compiling data, but a large quantity of valuable information was brought before the committee. Our conclusions were based on the evidence placed before us." Committee's Service The opinion that Mr. Marshall and the committee had done a great service to New Zealand and to the dairy industry in particular was expressed by Mr. W. Darrall, of Tati-anui. "It appears that the Government can do what it likes with us," Mr. Darrall added. "We can do nothing except express disapproval." t "A fact that should be made clear is that the farmer will net id per lb. less for butter-fat than he got last year," stated Mr. A. J. Sinclair, of Te Awamutu. "He has been left to carrj the whole burden of increased costs. I think this fact will answer statements which have come from Hawera that farmers are well satisfied with the new standards." "I do not think the Minister could have worked out a cleverer piece of political strategy," was the statement made by Mr. F v H. Anderson, of Cambridge. Mr. Nash would be able to show the farmer who_did not employ labour that the Government had done a great thing. But the Government had done nothing for the average farmer, the man who employed labour. Standards Approved

Members of the board unanimously approved of the standards recommended by the advisors' committee and the following resolution was carried:— "That the meeting, after perusing the report, unanimously endorses the standards established by- the report of the Guaranteed Prices Advisory Committee of 1938." Disapproval of the Government's action in altering the standards was expressed in the following resolution: —"That this meeting emphatically protests against the action of the Government in altering the standards unanimously established by the Guaranteed Prices Advisory Committee of 1938. thus reducing tlie return to the producer to such an extent-that, if he employs all paid labour, he will net approximately id per lb. butterfat less than he received last season, leaving him to carry the steadily increasing costs by the use of unpaid family labour." Local Market Price Further resolutions were carried as follows: "That this association regrets tha attitude adopted by the Government in reducing the price recommended by the Guaranteed Prices Advisory Committee, which implies that the (government 'finds it impossible to pay the dairy farmers a price which will cover ascertained costs, although these have been increased largely as a result of recent legislation." "That this'meeting emphatically protests against the delay of the Internal Marketing Department in increasing the price of butter sold on the local market to the equivalent of the guaranteed price."

STABILITY FOR SEASON MR. NASH'S ASSURANCE NO POWER TO REDUCE RATE [by telegraph—kvwn correspondent]] DANNEvikKE, Thursday Voicing approval of every reference to the guaranteed price system, large and sympathetic audiences met the Minister of Marketing, the Hon. W. Nash, at Eketahuna and Pahiatua to-day. At Eketahuna Mr. Nash took the opportunity given by a questioner of refuting a current rumour about . the stability of the guaranteed price. The questioner stated, that he had seen a newspaper report to the effect that the Labour candidate for Pahiatua, Mr. G. A. Hansen, had stated that the Minister had power to increase the price, but none to reduce it. On the other hand, the questioner had understood the Minister to say in his broadcast address from the dairy conference in Tarnnaki that the guaranteed price would have to be reduced if it were to be retained. " I said no such thing at the conference," answered Mr. Nash. "The Minister has no power to reduce the guaranteed price after an obligation to pay has been created." The Minister contended that the obligation to pay arose when the ordex-in-council fixing the price for the season was signed. Some lawyers, continued Mr. Nash, contended that the Government was under no obligation to pay the guaranteed price because the price did not become payable until butter waa actually loaded ou ships for export, and theoretically the Government might not accept dairy produce for export. Such a contention, stated the Minister, meant, if the implications were examined, that no produce could .bo exported. However, the position was that the price for the present season had been fixed by the Governor-Gen-eral-in-Couiicil and could not be altered. Prices > fixed for subsequent seasons would also be unalterable. There were 200 people present at Mr. Nash's meeting at Eketahuna at 1.30 p.m. and another 300 at Pahiatua at 0 p.m.