FRUIT INDUSTRY

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 13

FRUIT INDUSTRY

EXPOET POSSIBILITIES NELSON REPRESENTATIONS GOVERNMENT PLAN INADEQUATE [by tknF.cnapii—own correspondent] NELSON, Tuesday A meeting of the emergency committee of the Nelson Provincial Progress Leaguo was held in order to discuss with fruit industry representatives, the Chamber of Commerce and the Advance Nelson Association the position of tlio industry in its immediate difficulties. Following a general discussion it was resolved to send a deputation to Wellington on Thursday to again interview the Minister of Finance and Marketing, the Hon. W. Nash, on the subject.

Mr. H. E. Stephens, a member of the Export Control Board, said that up to three years ago and since 1909 the industry had cost the Government guarantee very little, except in 1926, when, as a result of the coal strike in England, the Government had lost £BO,OOO. Seven years ago the then Government had suggested that growers should build up their own funds independent of the Government guarantee. That course bad been decided on, and in tlireo years the fund reached £53,000. With the advent of the Labour Government the matter of guaranteed prices had entered, and Mr. Nash had stated thero was no need for the fund, and it should bo liquidated back to the growers. The Fruit Board then had no option but to disburse the fund.

Tho greatest difficulty facing the grower at this period was the question of financing the crop, said Mr. Stephens. Tho outlook as far as export this coming season was concerned was certainly not hopeless. Australia and Canada were budgeting on the assumption that they would not ho able to export any fruit, and if only South Africa and New Zealand were available prices would be high, so that, tho speaker said, Mr. Nash Avas not running much risk when he had mado an offer to take 1,000,000 cases. It was anything but a generous offer, and the industry had asked him that the price should bo Gs at the assembly point, not 7s, f.o.b. No bank, according to the speaker's investigations, would finance this 7s f.o.b. Already the position was acute for many growers. Under the Government's proposal there had to bo a general pool, and in order to pack 1,000.000 cases for export the grower had to pack 3.000,000 cases. The net return to the grower one the one-third of what lie packed was 5s 6d and on that figure lie would be in debt for packing and would not have anything for production costs. It was definitely not pos-' sible to carry on in preparation for the new crop under the Government's proposal.