PRICE GUARANTEE

New Zealand Herald, Volume LXXVI, Issue 23413, 1 August 1939, Page 12

PRICE GUARANTEE

PRODUCTION STANDARD FIGURE CARRIED TOO HIGH GREATER EFFICIENCY NEEDED ' £from our own* HAMILTON, Monday Comment on the Government's notion regarding the guaranteed price for farmers, recommended by tho advisory committee last year, was made by Air. R. A. Candy, chairman of directors Or the New Zealand Co-operative Herd Testing Association, at the annual meeting of tho association to-dflj. "To the mass of the farmers throughout the country, this committee became the Arbitration Court of the dairy industry," said Mr. Candy. "When the Minister of Marketing, the Hon. W. Nash, announced the price for this season, and also announced that it was estimated to return .87d per lb. of butter-fat less than that unanimously recommended by the advisory committee, the industry was thunderstruck. Production Per C«w_ "The basic reason given by the Minister was that, in the Government's opinion, an efficiency standard of production per cow of 2501b. was more correct than that of 2-tolb. as recommended by the committee. In placing evidence before the committee last year I was able to show clearly that over a period of years the average effective production per cow had not averaged 2301b. Therefore the committee, in accepting the 2401b. figure, had, to my mind, given the most liberal interpretation possible to this point.

"One is therefore forced to the conclusion that the real reason why the Minister did not accept the committee's figure was because .of his fear that such a figure would result in a deficit so great that, in his own words, 'if repeated, must inevitably wreck tho whole guaranteed prices procedure.' " Principle Not Opposed

"An attempt scorns to lie being made to-day to make the dairy industry the political chopping block of the country," said Mr. Candy. "Certain election results are held up as giving a clear indication that the fanning community does not want anything to do with the guaranteed price. "Nothing is further from the truth," he added. "The farming community has not at any time expressed an opinion against the principle of a guaranteed price, but it has expressed the opinion very strongly that the price as fixed is not adequate.

""Without entering into any political discussion as to the justification for certain acts, if the position is that the Government cannot give a price to the dairy industry that will meet all costs, then it must he recognised that the only way in which the industry as a whole can enjoy a standard of living in comparison with the general standard of living throughout New Zealand, is by still further increasing its efficifcncy."

BASIS OF PAYMENT KNOWLEDGE VITAL TO VOTE [nv telegraph—own con respondent] TE KUITI, Monday Concern lest the Government proposed to place the dairy farmer in an invidious position by asking him to vote for or against the guaranteed price without specifying what was meant bv that, term was the main topic discussed at the annual meeting nf the To Kuiti branch of the Farmers' Union to-day.

It was hold (lint if ilie legislation was administered according to the promises made and according to the wording of the Act. the farmer would he quite satisfied; hut that if the administration was to he on the linfa of that following when fixing the 19.'?8-09 price, the farmer had a right to be very dissatisfied. However, because of rising costs the farmer had no option hut. to accept tire guaranteed price. Some speakers were of the opinion that financial exigencies might, soon compel the legislation to he withdrawn. A resolution was carried that, in the event of the Government taking a rote on the question, it should first, definitely state the basis of the guarantee and the method bv which it meant to arrive at. the prire. A further resolution was carried that dairy farmers he circularised witlf j\ view to their refraining from voting on the cruarnntoed price ouestjon until the position had hoon made clear.

The following officers were elected:— President. Mr. .T. F, Roberts; vicepresident. Mr, J. J. Warriner; secretary. Mr. .1. TTislop; delegates to stibnrovincial conference, Messrs. J. F. Roberts and .T. Hislop; auditor. Mr. H. Gould; executive, the president and secretary and Messrs. W. Walker. W. T>. XV»nl. TT. W. T. FTimt. .T. J. Warriner. Tnpin and G. C. Miln.