EXPORT POLICY

Otago Daily Times, Issue 22910, 18 June 1936, Page 12

EXPORT POLICY

DAIRY PRODUCE MARKETING

EXPLANATION OF SCHEME THE METHOD OF FINANCE (Per United Press Association) HASTINGS, June 17. A statement that the Government had no intention of dealing with anything but dairy produce during the present season in connection with its export marketing policy w-is made to the National Dairy Conference in Hastings this afternoon by the Minister of Finance (Mr W. Nash). *• The one great object we set out to achieve was the removal for all time of the fear of price falls and the ecstacies of price rises.” the Minister said. “Of course, the farmer does not mind the ccstacies but there are often very unfortunate sequels and it is to accomplish the avoidance of these that the Government policy, will strive.” Mr Nash added that he had been reminded of Dickens’s “Great Expectations.” He did uot know whether these expectations would be realised, nor could he tell what the price this year would be, hut it would be more than the price obtained last year, or the year before, or the year before that. Dealing with the provisions of the Act, Mr Nash said the Marketing Department would ultimately take control of the marketing of all primary produce. That did not mean that meat and wool would be taken in now or at any time in the immediate future. But when the imperative weed for such control had been proved the same procedure as had been applied to dairy produce could be applied to other products. The people at the bead of the fruitgrowing industry, Mr Nash said, had already expressed their anxiety that the same procedure should be made to apply to the export of fruit. He had answered that he would discuss the request next year, ns it was not the Government’s intention to include any produce other than butter and cheese under the Act this year. The existing Meat and Fruit Boards would be used as the machinery for putting into operation the marketing system as it would apply to the fruit and meat industries.

THE FINANCIAL ASPECT The »reat question was where was the Government going to get the money, Mr Nash continued. Before the passing of the Act he had discussed the financial aspects with Mr Leslie Lefeaux, governor of the Reserve Bank, and had arranged for whatever money might be necessary to enable the dairy export policy of the Government to be put into effect. There would be in the Reserve Bank an account in which all money from the guaranteed prices woulo he hold, and into which the proceeds from the sale of the product overseas would he paid. All that could bo done at this end, and if it were to be successful it must bo supplemented at the othei mid, and not solely by Toolcy street. So far as. the Jooley street merchants were concerned, they would obtain the moat profitable results by co-operating with the New Zealand Government, and the Government had not had a word that they were unwilling to do so- they would have to carry out their marketing in accordance with the Government s intentions, and then they would he paid as well as it was humanly possible to pay them for their services. RECIPROCAL AGREEMENTS The dairv export policy, Mr Nash continued, could not be put into effect unless the Government could establish ft reciprocal trading agreement with the British Government. Under the new methods of marketing it would be possible for Inm to say to the British Government: “We can produce L'o,ooo tons of butter. We have taken every step to ensure its uniform and maximum qualitv. We can let you have it at a minimum price according to what the farmer ought to be paid for the work of producing it, and we agree to take from yon goods to the value of what we received for our butter. Ton take this £15.000,000 worth of butter from ns, and we will in turn, after provision for interest and for redemption of the debt we owe you, use the money in Britain for buying what we want. Those principles, Mr Nash said, would lie in being among all countries within the next 10 years. “ That may mean, ’ Mr Nash continued, “that our produce will be taken nowhere else, but I won’t worry. I may moan we shall have to take all 0111 cotton goods from Britain and not, say, from Japan.” If there were products that might be brought into being in New Zealand and that were not wanted bj Britain, then the Government would make bilateral agreements with the companies that would take those products. Coin" on to speak of his conception of the world as one economic unit, Mr Nash said the rest of the world could not keep Germany, or Japan, or India on a lower level than* itseli. If we have resources that are not available to other countries,” ho said, “ then we must make bilateral agreements with those countries.”

DISPOSAL OF SURPLUS Mr Nash* said lift had been asked whether, if the prices realised were 'greater than the guaranteed prices, the excess would belonsr to tho fanner or tnc Government. As Mr Savage had said, tiic Government did not want to make a profit out of any industry. If there wore in excess it would he credited to the dairy industry account and used for the benefit of' the industry. Why not a bonus ? he had been asked. There would he no bonus. H" could say. however, that the excess, if any, would not be used without consultation with representatives of the industry. Under the policy of tho Government, the Minister said, no section of the community would benefit at the expense of another section. The Government was trying to ensure that every man on the land.'every man on the waterfront, every clerk in an office was paid a. legitimate share of the wealth he brought into the country.

SUPPLY OF FARM LABOUR In answer tn a question wliieli dealt will) tlie possibility that men olTevcd K»s a day on public ’ works would not bo willing to work on farms, and that consequently farm labour might be difficult to engage. Mr Nash said the Government was acting in the matter. It was ensuring that farm labour would be available and the rates of pay bad already been determined, ft meant that if work were not available on public works and farm labour were available, men refusing to accept farm work would not be paid sustenance.