GUARANTEED PRICES

Wairarapa Times-Age, 15 July 1939, Page 8

GUARANTEED PRICES

PREMIER’S STATEMENT WELCOMED BY PRESIDENT OF FARMERS’ UNION. CONFERENCE CF INDUSTRY SUGGESTED. (By Telegraph—Press Association.) WELLINGTON, This Day. Commenting today on Mr Savage’s statement regarding guaranteed prices, the Dominion President of the Farmers’ Union (Air Mulholland) said that unfortunately Mr Savage’s statement had not come into his hands in time to be placed before the Farmers’ Union conference. “Obviously the statement made by Mr Savage is not a fully considered one." Mr Mulholland added, “although I have no doubt it represents a decision arrived at by the Government Presumably. Mr Savage will in the near future state the Government’s in ■ tentions more precisely. Apparently it means that the Government is going to hand to the industry complete control of the marketing of its produce. The industry, I think, will welcome this.”

The Government deserved well of the industry for the energetic manner in which it had established the marketing organisation in London, Mr Mulholland added, an organisation which had the undivided and unqualified appreciation of all sections of the industry. It had also done well in organisation at this end, but very specially in regard to those measures which had reduced overlapping and unnecessary competition in the manufacturing side of the industry. “While of necessity the opinion I am expressing is purely personal,” Mr] Mulholland observed, “I feel that the handing over of control 'of the organised marketing of their produce to the dairy industry will be regarded asputting the coping stone on a very fine edifice. In view of the incompleteness! of Mr Savage's statement. I have to make some assumption, but I am presuming that it is his intention that to the industry will be handed over all the present facilities for organised marketing, including facilities for operating the long-term stabilisation plan which is so vital a feature of the Government’s policy as originally expounded. This will, of course, include facilities for finance, either through the Reserve Bank or through the Trading Banks. If this is so. I think the Government is making a move which will

have the hearty endorsement cf the industry. In view of the near approach of the new season. I would urge upon Mr Savage that he, or the Acting -Minister of Marketing, immediately, through the Dairy Board, call together the representatives of the industry and place before them his actual proposals, so as to enable them to immediately express their opinion and take the necessa.-* action, for which there is now so little time. This action on the part of the Government does not relieve them jf the necessity of taking such action as will place producers’ costs in a proper relation to their prices. Failing the reduction of costs, which Mr Savage has repeatedly- refused to consider, the only alternative apparently is for them to enable sterling to be converted to New Zealand currency for the purpose ofpaying the farmer at a sufficiently high rate of exchange to bring about this result.”