“SCHEME UNSOUND”

Poverty Bay Herald, Volume LX, Issue 18192, 13 September 1933, Page 12

“SCHEME UNSOUND”

GUARANTEED RETURNS PRICES FOR PRODUCE Reasons why It would be impracticable to adopt the Labor policy of guaranteed prices for primary produce were given by the acting-Prime Minister, the lit. lion. .T. G. Coates, in the course of his election addresses in the Lyttelton by-election campaign. Mr. Coates said it was apparently the plan of tho Leader of the Opposition, Mr. H. E. Holland, to guarantee prices, presumably based on an average including bad years and good years. “In justice of Mr. Holland,’’ said Mr. Coates, “I have taken an average of prices over the seven years 192(5 to 1932 to arrive at a base for his guaranteed prices. The idea is to pay to farmers the difference between prices as they exist to-day and this guaranteed price. At present, prices are well below the average for the past seven years. With Mr. Holland’s scheme, the Government would have had to pay out in 1932 the huge sum of £19,345,000. If wo take July, 1933. average prices, the Government would have to pay out £20,4(10,000 to give the guaranteed price to fanners. These figures are calculated for butter, cheese, wool, mutton, lamb, beef, pork, “If Mr. Holland would guarantee 1928 prices, the loss to. the Government would be even greater. On exports alone, to make up 1928 prices, the Government would have lmd to pay out £27,200,000, When we realise that the total Government expenditure last year was something over £22,000,000 we can see that what Mr. Holland proposes is fantastically irn*

possible. There are several ways of doing this, nil at present impracticable and unsound. They are these —• borrowing, taxation, printing notes,