PRICE GUARANTEE

Poverty Bay Herald, Volume LXIII, Issue 19098, 20 August 1936, Page 5

PRICE GUARANTEE

FARMERS BETTER OFF MINISTER’S ASSERTION SURPLUS DISTRIBUTION REDUCTION OF INTEREST (Per Press Association.) HAMILTON, this day. “I am prepared to pay £25 to the crippled children’s fund or any other' charity if your company does not make a better pay-out for the current season that it did for last season,” declared the Minister of Agriculture, the Hon. W. Lee Martin, when speaking at the New Zealand Co-operative Dairy Company’s annual dinner last evening. Mr. Martin said that had the Hon. \V. Nash announced the guaranteed price three months ago he would have been acclaimed as the greatest benefactor in New Zealand. The Minister expressed appreciation, on behalf of the Government, for the many letters of goodwill that had been received with regard to the guaranteed price. (Laughter.) He went on to say that he had received only two letters of disapproval as against hundreds of lettei's which approved of the price. It was inevitable that there would have been disagreements, no matter what price was announced. Mr. W. P. Endean, M.P., had stated that the scheme would cost the country £8,000,000, while his bench mate, the Hon. J. G. Cobbe, said that there would be £20,u00,000 in the “kitty” at the end of the year. INCREASE IN COSTS The average price was determined by the most qualified men in the industry, including Mr. W. Westwater, of the New Zealand Dairy Company’s staff. Both Mr. Savage and Mr. Nash had stated that if there was a loss at the end of the year it would be borne by the Government, but if there was a surplus it would be distributed to the farmers of the country.

In support of his argument that the Government had placed a generous interpretation on the basis it had adopted in fixing the guaranteed price, Mr. Martin said the additional sum that would be available over the last eight years average would he £1,413,650. Over the last nine years, the average addition would be £1,082,000, and oyer the last 10 years the average additional sum would be £862,500.

Referring to costs, the Minister said that interest rates, insurance, and fertilisers comprised 60 per cent of farmers expenses. Interest would be reduced and there would be no increase in the other items mentioned. The industry would be saved £60,000 in bank charges this season.

Mr. Martin believed that the Government had lived up, absolutely and entirely, to its pre-election promises. He had previously described the scheme as a tremendous experiment, but he was now satisfied that it would be a successful one.

Mr. Martin said he had had the increased costs on his own farm worked out, and these amounted to per lb. It must be realised that payment was being made for butter, but when the overrun, manufacturing cost, and cost of f.o.b. were taken into account the payment to the farmers themselves would probably amount to 13.08 d, the Ministei concluded.