PRINCIPLE, NOT A PLAN

Timaru Herald, Volume CXLV, Issue 21090, 16 July 1938, Page 8

PRINCIPLE, NOT A PLAN

COMPENSATING PRICE Bridging Gap in Costs cl Fid Returns | By Telegraon —Press Assoc»-u<'n WELLINGTON, July 15. The compensating price is a prinj ciple, not a plan, said the Dominion | President of the New Zealand FarmI ers’ Union. Mr W. W. Mulholland, toi day, when shown the report of a recent • address to the Nelson Branch of th? I Union by Colonel S. J. E. Closey. The i report stated that the branch “en- . dorses the compensated price plan as j outlined by Colonel Closey.” Mr Muli Holland said he could not find in the ; report of Colonel Closcy’s address any- ; thing to justify the use of the word i “plan” rather than “principle.” The speaker had stated the cause of injury, namely, that the New Zealand I farmer was selling his goods overseas i at the lowest world price level but was ; buying his requirements in New Zealand on a high protected price level, i He had said the gap must be closed, ■ and with this principle the New Zeaj land Farmers’ Union was in perfect agreement. , The address had offered four ways ' in which the gap might be closed, said jMr Mulholland. (1) reduction of I tariffs. (2) reduction of taxation. (3) 1 reduction of wages. (4) increasing the i farmers’ reward. The attitude of the i New Zealand Farmers’ Union was to ' leave it to the Government of the day ; to decide how the gap should be closed. • The general principle was clear, and | the union contended itself with stating • it. I “Summed up. the union’s attitude is as follows,” said Mr Mulholland. (I > “A policy of reducing costs is tho soundest way in which the economy of New Zealand can be kept stable, and by which the fanner can be enabled to carry on his business properly; (2> if the Government is not prepared to keep costs and prices in proper relationship by reducing costs, the farmer should receive a price compensated in such a way as will adjust this relation- . hip; (3) the compensating price is not to be brought about by a credit issue or by any means which will have tho effect of inflating prices, and (4) the Farmers’ Union puts forward no plan by which this end is to be achieved, but leaves that to the Government subject to the qualifications expressed above.”