BOARD'S POSITION

New Zealand Herald, Volume LXXVI, Issue 23401, 18 July 1939, Page 11

BOARD'S POSITION

QUESTION OF POLICY INDUSTRY'S VIEWS DEFINEC GUARANTEE NOT REQUESTED [HV TEfjEGRAIMT—OWN CORRKSPONDKNT] WELLINGTON, Monday The attitude of the Dairy -Boari owarel tlio guaranteed price sclieuie was Mitlined in a statement made bv the chairman, Mr. W. K. Hale, in'com nenting on the recent statement b\ lie Prime Minister, Mr. Savage. He -aid tlie board had from the outset •egarded tho scheme as a matter of jo\ eminent policy, and had co-operated villi the Minister of Marketing, the Hon. W. Nash. At the same time ht \mphasised that, the industry had never iskod for the scheme, nor had it hail :he opportunity of voting independcntl.v )n the question, and that that section vhicli luid originally favoured it hail iince found that costs had soared above :he benefits. Mr. Hale said a meeting of the special •ommittee set up to handle the guaranteed price question on behalf of the ndustry had been fixed for early in August. By then the Government's intentions would probably bo clarified and the industry would be in a sound position to review the matter in light of recent developments. 00-operation Given "The position which tho Dairy Board iias taken up from the very inception oi the guaranteed price scheme is that it is a matter of Government policy," continued Mr. Hale. "The board has thereFore worked in co-operation with the Minister of Marketing and has presented the industry's viewpoint to him t'rom time to time." The dairy industry had never asked for the guaranteed price scheme, 1101 bad it ever had tho opportunity ol roting inde|x;iulently 011 the question, •ontinued Mr. Hale, but in view of the nost of production in New Zealand toJay the dairy farmer had to have sonic protection. That section of the industry which Driginally favoured the guaranteed price scheme considered that the price to bo paid was to bo a New Zealand price based on the farmers' costs, but bad since found to its sorrow that its costs of production and manufacture bad been running continually ahead of the benefits obtained under the scheme. Rising Costs The dairy farmer's complaint, particularly during the past season, when the standard recommended by the guaranteed price advisory committee had been altered by the Minister of Marketing, was that he was not protected against the steadily rising cost*. He felt now that his price, instead of being a price fixed in accordance with the terms of the Act, was simply an average of the market price and did not take fairly into account the high cost under which he was labouring. Mr. Hale added that it had been decided at the Dairy Board meeting last Wednesday to call together early in August the special committee set up to handle the guaranteed price question on behalf of the industry. That meeting, comprising representatives of the National Dairy Federation, the South Island Dairy Association, the New Zeaand Farmers' Union and members of he Dairy Board, would closely consider ;he present position, and, if it was houglit necessary, the elected delegates o the Dairy Board's Dominion conference would be called to Wellington. That decision to call the committee ogether had been made before the 'rime Minister's statement, but by the ime it met the Government's in teutons would probably be clarified md could be considered along with ither aspects of the matter. SYSTEM APPROVED IMPORTANT. PROVISO FIXATION OF THE PRICE TARANAKI SUPPLIERS' VIEW [by telegraph—OWN correspondent] NEW PLYMOUTH, Monday The first indication of the reaction of lairv farmers in Taranaki to tho Prime 1 Minister's hint that the Gov•rnment may dr.op the guaranteed irice system was provided at a meetng of suppliers to the Oaonui Dairy Dompany to-dav, when support for the )resellt system was expressed, provided ;hc guaranteed price was a figure recommended by the commission aplointcd for that purpose. This provis--011 was included because it was couriered that rising costs must be taken nto consideration. Mr. E. M. Reynolds, who said that tie was satisfied with the system, moved that tho meeting express its satisfaction with the present system of tho handling of dairy product by tho Marketing Department under tho guaranteed price plan. Mr. Reynolds referred to the Prime Minister's remarks about the advocacy of a free market and Mr. J. Young said the Fanners' Union had never consulted the suppliers of the company to find out whether they were satisfied. Mr. T. Gardner said he did not consider that the delegates who went to Wellington representing the Farmers' Union represented the majority of working farmers. Mr. J. S. Stronge said rising costs must be taken into consideration in fixing the price for produce, and he moved an amendment to the resolution idding a provision that the guaranteed price be that set by the commission lppointed for the purpose. The resolution as amended was carried by a substantial majority.