RETREAT FROM GUARANTEE

New Zealand Herald, Volume LXXVI, Issue 23401, 18 July 1939, Page 13

RETREAT FROM GUARANTEE

Pi r —| liked tout sub-lesuler in Saturdays issue. You have put the vexed question of the guaranteed price m a nutshell. I have always claimed that the Government never intended the farmer to «'et a cent more than his produce brought in the world's niarthe Government has to find a million and a-half to make up the deficit, this past season, the point is that, although ostensibly paid to the farmer, that million and a-hali is merely passed on in his increased costs and more besides. It is true that tlieie may be a slight gain to the farmer who omplovs onlv his wife and children, but taken' by and large if the farmer got what his produce brings abroad and did not have what must, now he -4d per pound increased costs, ho would be much better oil'. A section of the farmers were badly hoaxed by the guaranteed price. Under the Coates .Reform Government we got Is 6d for butter and often Is Sd for cheese butter-tat, and we did not have anything like the hcavv costs, but all the Labour Government can do is to compare prices to-day with approximately 8:1(1 in IJ.M. The farmers are now facing vital issues and must stand solidly together. Why should the farmer pay his security tax and hospital tax as well? Why should he pav road rates and petrol tax too? If there in no other course, let the Government increase the security tax and relieve the farmer of these unjust taxes. There are instances of farmers having to'sell cows to pny the security tax. W. P. KENAH. Raglan«