FIXED PRICE

Wanganui Chronicle, Volume 79, Issue 45, 22 February 1936, Page 10

FIXED PRICE

NOT A GUARANTEED PRICE. There appears to be considerable con. fusion in the minds of many speakers and writers on this question. The recent fixation of prices for wheat, flour and bread is assumed by some to be a step in the direction of a guaranteed price, whereas the scheme as issued by the Government does not disclose any guarantee. The proposal with regard to our dairy produce however, so far as tne Government has been able to announce, is definitely that a guaranteed price will be named and given by the Government. In this case, as forecasted during the election campaign, the Government will fix a price for dairy produce and under its guarantee the State will pay that price and take over the produce. The producer is in no way concerned with the sale price or indeed with the sale itself. He will receive the price guaranteed and it is the state’s concern as to how. or for what, the produce is sold. This is essentially different from the fixation of wheat, flour and bread. In this case the price at which these commodities are to be sold is fixed, but there does not appear to be any sort of guarantee that this price will* be paid by the purchasers, or any guarantee that this produce will even be >old. The producer has to take the usual business r;sk as to sale and the payment of the fixed price. In pointing out this distinction we are not in anv way criticising the Government's decision. it would be absurd to criticise until it has had time to disclose its programme. A new Government must have reasonable time after taking office to investigate the position before making a public announcement. (Contributed by the N.Z. Welfare League.)