PRIMARY PRODUCE

Otago Daily Times, Issue 23930, 4 October 1939, Page 8

PRIMARY PRODUCE

PURCHASE BY CROWN WIDE POWERS TAKEN SALE TO UNITED KINGDOM SPECIAL ACCOUNTS CREATED (From Our Parliamentary Reporter) WELLINGTON, Oct. 3. Authority for the purchase by the Crown of any classes of goods and itheir disposal in the Dominion or elsewhere, is contained in the Marketing Amendment Bill, which was introduced by GovernorGeneral's Message in the House of Representatives to-night. The Bill, which was read a first time after a lively discussion, changes the name of the Primary Products Marketing Act and the Primary Products Marketing Amendment Act to the Marketing Act and the Marketing Amendment Act respectively. The name of the Primary Products Marketing Department is to be changed to that oi! the Marketing Department, and the Dairy Produce Export Division of that department will, in future, be known as the Export Division. The Fixing of Prices The Bill extends the functions of the department, and enables it by Order-in-Council to purchase or otherwise acquire any specified goods, and to sell or otherwise dispose of them for consumption or use in New Zealand or elsewhere. The prices to be paid by the department may also be fixed by Order-in-Council. The provision of the original Act relating to the handling, pooling, shipment, storage, and insurance of dairy produce are extended to apply to any other commodity which may be acquired by the department. The powers given in the Primary Products Marketing Amendment Act for the fixing of price margins for certain classes of foodstuffs are extended to apply to any goods acquired under the Bill, whether foodstuffs or not. Accounts at Reserve Bank Special accounts to be given such appropriate names as the Minister of Marketing may determine may be opened at the Reserve Bank for the purposes of the Bill. No limit is to be placed on the authority of the Reserve Bank to grant accommodation by way of overdraft to any account established in this way, and such accommodation is not tq be deemed an unsecured loan or advance. All moneys derived from the operation of the department will be paid into the relevant account. Similarly, payments for goods acquired by the Crown, charges for freight, insurance, storage and marketing, interest payable to the Reserve Bank on any overdraft, and administrative costs are to be met from the accounts. . The Bill makes it clear that in fixing the prices of goods acquired by the department during the present emergency due regard is to be given to "the existence of such state of emergency or of war and to the conditions created thereby." This.clause will condition the provision in the original Act setting out how the price of produce is to De fixed. MEASURE EXPLAINED A LIVELY DISCUSSION MEMBERS SEEK INFORMATION (From Our Parliamentary Reporter) WELLINGTON, Oct. 3. "The Bill gives power to specify by Order-in-Council the classes of goods or any particular goods that, can be taken over," said the Minister of Marketing (Mr W. Nash) when the Marketing Amendment Bill was introduced in the House of Representatives tonight. "The Dairy Produce Export Division simply becomes the Export Division, and leaves the present director as director of the Export Division. "The Bill gives power to do the same with meat, wool, and other primary products, as has been done with dairy produce," the Minister added. " The Export Division will act as agent for the United Kingdom Government in connection with the purchase of such of our products as the Old Country wants. . , Mr W. J. Poison (Opposition, Stratford): What will happen to our selling organisation? Mr Nash: The director, the assistant director, and five members of the staff have been absorbed by the United Kingdom organisation. Mr S. G. Holland (Opposition, Christchurch North): What will happen to our stock and station agents? Mr Nash: That question is now under discussion. Appraisal of Values Sir Alfred Ransom (Opposition, PahiatuaT: Does the Bill provide for .any price-fixing? Mr Nash: The idea is to ensure that a maximum portion of the price paid will go to the producer. I hope there will be a fixed price at which the United Kingdom will buy our wool, meat, etc. We are setting up an organisation to carry out that buying for them and to appraise the value of the wool and meat with the object of getting it to them as soon as possible. Mr Poison: Have you settled the question of storage? " That is a major difficulty." Mr Nash said. "We want our products to be sold before shipment. The United Kingdom wants to buy them, but- only when they are on the ship. The United Kingdom Government's offers to us in general are as good as anyone could expftct them to be. They are very fair but there are some controversial points. , t . Mr Poison: What is going to happen to our produce brands? "They are going overboard, Mr Nash replied, "because our butter will be sold by the United Kingdom merely as butter. To the extent that the produce reaches the distributors in boxes, however, it will be, New Zealand butter. It is agreed that our butter should be paid for at a margin over other butter. , t . Mr Poison: Will the system of appraisal for wool be the same as in the last war? , , .. „„ Mr Nash: That is under consideration We want to avoid any profiteering as a result of the war and have already taken some steps to stop it. Method of Payment Accounts similar to the Dairy Industry Account would be set up for dealing with other products, the Minister aided. The Government would pay Out from the Reserve Bank to the producers and the payment from the United Kingdom Government for produce would be to a major degree f.o.b. That would be a real advantage. " The Marketing Department will be acting in connection with the canteens at the camps," Mr Nairn said, " and the Bill gives power for the purchase of any goods for that purpose so long as thev are specified." . _ Mr H. S. S. Kyle (Opposition, Riccarton): Is this for the duration of the war? " No. It is for all time," the Minister replied. " but in fixing prices we will have to take into account that present conditions are of an emergency nature"