MR NASH’S PLAN

Timaru Herald, Volume CXL, Issue 20260, 8 November 1935, Page 8

MR NASH’S PLAN

Of more than passing interest is the statement of the deputy-leader of the New Zealand Labour Party that tlie first step in the procedure in the introduction of the Party’s guaranteed-price plan would be the arrangement of reciprocal agreements with Great Britain and other countries, under an undertaking, by the Dominion to utilise the credit obtained for die purchase of goods for import--11 ion into New Zealand. It is not ■nr intention at the moment to

discuss the soundness or otherwise of Labour’s guaranteed price plan: suffice it to say at the moment, that so many plans have been proposed by various members of the Labour Party, that it is somewhat difficult to discover just what are the ideas of Mr Savage and his colleagues on this much discussed question. Mr Nash’s statement serves to show however, that one of the conditions controlling his peculiar guaranteed price plan is the making of satisfactory reciprocal agreements with Great Britain and other countries for the purchase of New Zealand products. This statement is interesting because other Labour candidates have ridiculed the very idea that New Zealand depends upon oversea markets for its prosperity. Labour politicians, moreover, have denounced the Government for teaching the people that their income is derived from overseas. In other words, it has been stated that New Zealand does not live on its exports! The deputy-leader of the Labour Party lias other ideas. He comes forward with his guaranteed-price plan based on the arrangement of reciprocal agreements with Great Brtain and other countries for the purchase of New Zealand’s products; indeed, these agreements will determine the whole plan. This is proved by the statement of Mr Nash that “when these agreements have been completed,” etc., etc., the Government will proceed to fix prices. In other words, the terms of reciprocal trade agreements will determine the fortunes of the New Zealand farmer. But Mr Nash goes a little too far! “In the event of there being a surplus over the agreements negotiated, a Labour Government would dispose of the surplus to the best available market and pay out to the farmer.” No man on the land needs to lie warned of the danger that lurks in this proposal. Mr Nash talks as though the arrangement of reciprocal agreements with Great Britain and other countries presents no difficulties. The purpose of this Suggestion is perhaps to excuse the Opposition for its sorry failure to give Mr Coates credit for the meritorious service he rendered New Zealand in general and the meat producers in particular, in concluding the existing agreement. But, of course the Opposition have not thought it wise to discuss the agreement Mr Coates concluded because they preferred to look on in the days of severe economic crises, and no praise could be given to Mr Coates. Nevertheless, it is just as well that the New Zealand producer should not shut his eyes to New Zealand’s problem of finding a market for her output. This is outlined in the report of the Meat Producers’ Board: Production for export has far outstripped expansion in demand, especially in view of the virtual closing of so many European markets. In 1924-25 killings for export covering meat of all kinds, amounted to 5,705,600 carcases; in 1934-35 the total was 9,099,000. United Kingdom imports of frozen and chilled beef in 1934 were nearly double those of ten years earlier in the case of New Zealand, while in regard to the larger , producers the amount from Australia varied little, and in the case of South America they were nearly a million quarters less. Between the same years the landings in England of New Zealand mutton and lamb rose from 125,100 tons to 177,700 ton,s. Expansion on this scale emphasises not only the difficulties confronting the overseas pastoral industry in present world political and economic conditions but also the need for careful handling in maintaining a balance with the home consumer and producer interest.

And Mr Nash now confesses his guaranteed-price plan will require reciprocal agreements with Britain and other countries with undertakings to purchase goods for importation into New Zealand, while any surplus will he sold “in the best available market”—after the British and other markets have been supplied. Then the pay-out to the farmer would then be made! But perhaps some other Labour candidate’s guaranteed-price plan will find a way to surmount the complexity of the meat import situation, which would hamper Mr Nash in operating his own peculiar plan.