BUTTER PRICE DEFENDED

Poverty Bay Herald, Volume LXIII, Issue 19099, 21 August 1936, Page 5

BUTTER PRICE DEFENDED

MR G ODDFELLOW’S OPINION

“LOSS TO GOVERNMENT”

.MINISTER’S LASTS SOUND

(Per Press Association.) HAMILTON, this day

“Our Government lias undertaken the great responsibility ol improving the marketing of dairy produce, commented Mr. W. Goodfellow, at. the annual meeting of the New Zealand Co-operative Dairy Company.

“The guaranteed price is not essential to the efficient marketing of our produce in Great Britain, and its retention will, in my opinion, depend on whether or not, the losses are too great even for the Government, to carry. 'Hie surest way to end the guaranteed price would be, to fix the price at a figure which would result in a big deficit. “If Australia has a normal season during 1936-37. and nothing unforeseen occurs elsewhere, it is probable that 13 9-16 d f.o.b. for butter will mean a loss to the Government. From this angle. I personally consider that, the Hon. W. Nash has made a sound decision. Present prices are little or no indication of what London prices will be for the coming season. The right time to analyse the guaranteed price will be at the end of the season, when its true value will be obvious.

“It is rather unfortunate for the Minister that the price had to be named during a period when London values were temporarily at an artificial figure, Mr. Goodfellow said. “The Government is to be congratulated upon its decision to send Dir. Nash to London for the purpose of negotiating a bilateral agreement between this Dominion and flic United Kingdom Government.’