“ULTIMATE END OF SCHEME

Southland Times, Issue 22915, 13 June 1936, Page 14

“ULTIMATE END OF SCHEME

Vast Possibilities of Guaranteed Prices “MOST REVOLUTIONARY MEASURE” “From the viewpoint of the farming community the Primary Products Marketing Act is the most revolutionary measure ever placed on the statutes of this country,” states the report of the executive of the National Dairy Association to be presented at its fortysecond annual conference at Hastings on June 17. “Described even by a Minister of the Crown as a tremendous experiment, so vast are its possibilities for good or ill that the ultimate end of the scheme cannot be foreseen at this stage,” the report continues. “In introducing it, the good faith of the Government toward the farmer cannot for one moment be doubted; nor must it be forgotten that the Government was placed in power largely because of its pledge to ensure to primary producers a reasonable return for their labour. Whether the present scheme is quite what farmers were led to expect from pre-elec-tion pledges of guaranteed prices is open to question, but it is safe to say the majority did not anticipate guaranteed prices would entail State purchase and marketing of the whole of our exportable produce. Vital Question of Price. “With the vital exception of naming the price it proposed to pay farmers for their produce, the Government has placed its plans frankly before the industry, inviting comment and constructive criticism in order to make the machinery of the Act as perfect as it was possible, and answering questions on any points which, in the opinion of the industry, needed elucidation. The question of price is, of course, a very vital one, and the reasons given for withholding this information appear rather weak, it being difficult to understand how the announcement of a definite figure could result in speculation It would be more reasonable to expect that in the face of certainty, speculation would cease, and it appears evident that the Government has reasons other than those stated for continuing the present state of uncertainty. “Leaders of the industry have accepted the scheme with a measure of reserve, and the Wellington conference called together to discuss the proposed legislation with the Ministers concerned made it quite clear that it left full responsibility with the Government While delegates assisted in improving the machinery of the Act by sound advice and suggestions based on the practical experience of the past, it was obvious that thoughts regarding the soundness of the scheme were in the minds of many. However, the Government made it clear that it was irrevocably committed to the scheme, and as nothing can be gained by destructive criticism, the industry will best be furthering its own interests by continuing to give all the help and co-operation it can.

“Details regarding the method of marketing are so far vague, but it is not thought that there will be any revolutionary changes in the existing system, and the present channels of distribution will no doubt be used to a large extent. “Costs Must Rise.”

“Indissolubly linked up with the marketing plan is the remainder of the Government’s legislative programme, and the ground needs to be cleared a lot more before a true perspective of the position can be obtained. Adjustment of mortgages, financial plans, improved conditions for both urban and rural workers and other enactments must inevitably have a bearing on the future, and in spite of the Prime Minister’s repeated statements, it is difficult to avoid the conclusion that working costs must rise. Guaranteed prices should make for stability, and by establishing computable land values should imbue farmers with a feeling of security which has been sadly lacking in the past. That undoubtedly is the aim of the Government, but if these desirable factors are to be outstripped by the rising tide of farming costa, it might well be asked what the ultimate benefit will be to the producer. However, conjecture at this stage is futile. The results of this tremendous departure from the beaten paths will be awaited with world-wide interest, and insofar as the dairy industry is concerned the Government can rest on the assurances already given that it will be given the utmost assistance to ensure the success of the scheme.”