GUARANTEED PRICES

Otago Daily Times, Issue 22824, 7 March 1936, Page 14

GUARANTEED PRICES

TO OPERATE FROM AUGUST 1 OWNERSHIP OF DAIRY PRODUCE WILL PASS TO GOVERNMENT (Per United Press Association) AUCKLAND, March 6. The guaranteed prices plan of the Government will involve the taking over of the ownership of all dairy produce exported from the beginning of next season, according to advice received from the Minister of Agriculture, Mr Lee Martin, by the directors of a local dairy company. The company approached the Minister seeking information regarding the Government's intentions and whether it was proposed to place its plans before the industry.

The views of the company's directors regarding marketing were also placed before the Minister, and the following reply has been received from Mr Lee Martin:—

"The Labour Party's policy of guaranteed prices was fully explained prior t-> the elections and was unmistakably approved by the electors, including the dairy farmers. No purpose can now be served by submitting it either to companies or to individual suppliers for further endorsement, and much valuable time would be taken up which might make it impossible to bring the programme into operation as intended on August 1. As the ownership of produce will pass to the Government before the produce leaves New Zealand eyery care will be taken by the Government that the produce is marketed to the best advantage."

The Minister's reply makes it clear that the Government intends to proceed with its giu'i-anteed prices plan as soon as the details are arranged. Probably the details will not be made known until Parliament is in session. The fact that the Government will take over all produce raises a question regarding the group marketing scheme of the Dairy Board. The grouping of factories probably will not be necessary, and the Minister's statement leaves open the question whether the existing distributing agencies will be retained or whether the number of importing firms will be reduced.