BRITISH PURCHASE

New Zealand Herald, Volume LXXVI, Issue 23481, 19 October 1939, Page 13

BRITISH PURCHASE

PRICES 3S T OT SETTLED THE RETURN TO FARMERS POSSIBLE LOSS IN ACCOUNT [BY TELEGRAPH—SPECIAL REPORTER] "WELLINGTON, Wednesday The possibility of a loss being incurred in tho Dair3* Industry Account in the event of prices paid by the Imperial Government for New Zealand dairy produce being below those paid to the dairy farmer was mentioned by tho Hon. W. Nash to-night. The Minister said that negotiations between tho Governments of the United Kingdom and New Zealand concerning tho prices to be paid for the Dominion's exportable surplus of dairy produce were still in progress.

Mr. Nash revealed that he had informed representatives of the dairy industry tliat it .was by no means certain that the prices received for butter and cheese from the United Kingdom Government would justify an increase in. the guaranteed price. If the price offered by the Imperial Government for the total exportable output of butter and cheese where the only consideration the guaranteed price for the 193940 season should have been v reduced. Negotiations Proceeding

'The negotiations are still in train," said Mr. Nash, "and the New Zealand Government has stated to .the United Kingdom Government that ft does not desire to take any advantage of the situation created by the war, but that it considers New Zealand should receive prices more in keeping with the cost of production. •

"There have, of course, been other aspects than the actual price. These concern the possible liold-up of shipping and the question of storage charges, as well as outside markets. As vet 110 final price has been agreed upon with the Imperial Government." The Farmers' Position Although there was a delay in completing the agreement, he it would be preferable, in view of the fact that the dairy season was in progress, to guarantee to producers the same price as was paid for the 1938-39 season, Mr. Nash (Continued. This course was adopted in spite of the fact that the prices ultimately to be received from the Imperial Government might be below those being paid to the dairy farmer, involving a possible loss in the Dairy Industry Account. The dairy producer had been put in a different position from that of other classes'of producers who were required to accept the prices paid by the British Government, lie said. However, it was felt unreasonable to reduce the prices below those received by the dairy companies for 1938-39. Fixed Price in Britain "Reference has been made in some quarters' to the price of 14os per cwt. advised by a press statement as being the maximum wholesale price fixed by the British Government in the United Kingdom on September 26," Mr. Nash said. "It will be clear that this price has no relation to the price which the British Government is willing to pay Xew Zealand and Australia for their season's output and is fixed to cover a period of the year in the United Kingdom when supplies of imported butter are at their minimum. "At this period the supplies from the northern hemisphere. * owing to enemy attacks on neutral shipping, are falling away, and supplies from the southern hemisphere, Australia. New Zealand and Argentina, have not commenced to arrive in any quantity. Full • Co-operation Needed "It will be remembered that on the basis of the conditions prior to the outbreak of war the guaranteed prices fixed for New Zealand butter and cheese were the equivalent of the following' London market prices:—Butter, 124s 3d per cwt.; cheese, 73s 6d per cwt. Since the outbreak of war the rates of freight and war risk insurance have risen and the corresponding London market equivalents are much higher. "The evidence proves that the industry has been continuously consulted and that the Government is taking every possible step to ensure that reasonable prices are obtained for both butter and cheese," Mr. Nash added. "What is now required is full co-opera-tion between the • farmers, industrial organisations and the Government, so that production may be at the maximum and that the produce is shipped without delay to enable the United Kingdom to make the major effort in the difficult days ahead."

WOOL NEGOTIATIONS

ARRIVAL AT PRICE OF 12JD REVIEW BY MR. J. G. BARCLAY [from our OWN correspondent] Wednesday In an interview to-day, Mr. J. G. Barclay, M.P. for Marsden. gave a resume of the negotiations that led up to the fixation of the price to be paid for New Zealand wool for the war period, and replied to criticism that has appeared. Mr. Barclay said that the Imperial Government had first made an offer considerably less than the price finally agreed upon, 12id. When the negotiations were first opened .Mr. Nash called a conference of wool buyers, stock and station agents, representatives of the sheepfarmers and others interested in the industry, Mr. Barclay continued. This conference appointed a sub-committee to go fully into the position and ascertain what would be a fair price. This committee had reported that Is a. lb. was a fair price to ask. The Minister had been able to secure an even better price than this. The price fixed would mean about £3,000.000 more to New Zealand woolgrowers than was secured for last year's clip. Before Mr. Nash accepted the final offer he asked Mr. Miillholland, the president of the Farmers' Union, Mr. T. Duncan, representative of the Sheep-owners' Federation, and other representatives, if they were satisfied with the price and they all said that they were. In fact, the representatives of 1 the industry were consulted all the way through the negotiations. Generally speaking the price was considered a fair one. but. of course, there was a section that would never be satisfied, Mr. Barclav concluded.

INTOXICATED DRIVER

[by TBLKftllAl'lf —Pit ESS ASSOCIATION] OAMARU, Wednesday For being intoxicated while in charge of a car. I'obert Alexander Winslev. builder, of Onmaru. was fined £3O and his licence was cancelled for 12 months. Another motorist renorted the offender to the police and his action was commended bv t.he mneistrat.fi.