GUARANTEED PRICE

Wanganui Chronicle, Volume 79, Issue 143, 18 June 1936, Page 8

GUARANTEED PRICE

NOT YET DISCLOSED THE DAIRY INDUSTRY GOVERNMENT’S MARKETING POLICY ; MINISTER ADDRESSES M.D.A. s CONFERENCE. t d i ( Fer Press Association j HASTINGS, June 17. A statement that the Government had no intention of dealing with anything but dairy produce during the present season in connection ( with its export marketing principles, was made to the National j Dairy Conference in Hastings this afternoon by the Minister of Finance, Hon. W. Nash. 4 ‘One great object we set out to 1 achieve was the removal for all time ' of the fear of the price falls and 1 ecstasies of price rises,” he said. ‘‘Of ' course the farmer does not mind s ecstasies, but there often are very unfortunate sequels and it is to avoid t these that Government policy will 1 strive to accomplish.” He had been 1 reminded, he added, of Dickens* 1 “Great Expectations.” He did not s know whether these expectations would I be realised nor would he tell what the ( price this year would be, but it wou.d I be more than the price obtained ,last • year, or the year before, or the year 1 before that. Dealing with the provisions of the < Act, Mr. Nash said that the Market- ' ing Department would ultimately take ; control of the marketing of all primary i produce. That did not mean that meat 1 and wool would be taken any time m I the immediate future, but when the ‘ imperative need for such control had ’ been proved. The same procedure as 1 had been applied to dairy produce could be applied to other products. The people at the head of the fruit-growing industry, said Mr. Nash, had already expressed their anxiety, and the same procedure should be made to apply to the export of fruit. He had answered that he would discuss the request next year as it was not the Government’s intention to include any produce other than butter and cheese under the Act this year. The existing meat and fruit boards would be used as the machinery for putting into operation a marketing system as it would apply to the fruit and meat industries. Getting the Money. The great question was where was the Government going to get the money, Mr. Nash continued. Before passing the Act he had discussed the financial aspect with Mr. Leslie Lefeaux, Director of the Reserve Bank, and had arranged for whatever money might be necessary to enable the dairy export policy of the Government to be put into effect. This would be in the Reserve Bank account into which all money from guaranteed prices would be paid and into which the proceeds from the sale of products overseas would be paid. All that could be done at this end and if it were to be successful must be supplemented at the other end and not solely by Tooley Street. So far as the Tooley Street merchants were concerned they would obtain the most profitable results by co-operating with the New Zealand Government, and the Government had not had word that thev were unwilling to do so. Thev would have to carry out their marketing in accordance with the Government’s intentions. Then they would be paid as well as it was humanly possible to pay them for their services. The dairy export policy, continued the speaker, could not be put into etfeet unless’ the Government could establish a reciprocal tradings agreement with the British Government. Under the new methods of marketing i it would be possible for him to say to the British Government: We can pro duce 150,000 tons of butter, we have taken every step to ensure its uniform and maximum quality, and we can let you have it at a minimum price according to what the farmer ought to be paid for the work of producing it. W e agree to take from you goods to the value we receive for our butter. You take this £15,000,000 worth of butter from us and we will, in turn, after provision for interest and for redemption of the debt we owe you, use the money in Britain for buying what we want. Those principles, said Mr. Nash, would be in being among all countries within the next ten years. “That may mean.” Mr. Nash added, “that our produce will be taken nowhere else, but I won t > worry. It may mean we will have to take all our cotton goods from ; Britain and not, say, from Japan. If there were products that might be ; brought into being in New Zealand and that were not wanted by Britain, then the Government would make a bilateral agreement with the countries that would take those products. One Economic Unit. Going on to speak of his conception of the world as one economic unit, Mr. Nash said that the rest of the world could not keep Germany or JaP an India on a lower level than itself. K we have resources tha. are not available to other countries.” he said, “then we must make bilateral agree ment« with those ronr.tr>?.’’ He had been asked whether if t._--rices realised were, greater than the guaranteed prices the excess would be lon<r to the farmer or to the Government. As Mr. Savage had said, t.ie Government did not want » profit out of any industry. If th were an excess it would be credited to the Dairy Industry Account and irner for the benefit of the industry. Mhy not a bonus? he had been asked. Ther. would be no bonus. He could say, hovv ever that the excess, if any. would not be used without consultation with representatives of the industry. Inner ♦he policv of the Government no section of the community would beneut at the expense of another section, lhe Government was trying to ensure that every man on the land, every man on the waterfront, and every clerk in an office was paid a legitimate share of the wealth he brenght into the country. In answer to a question which dealt with the possibility that men offered 16s a day on public works would not be willing to work on farms, and com sequent!/ farm labour might be diffi 7

cult to engage, Mr. Nash said the Government was acting in the matter. It was ensuring that farm labour would be available and the rates of pay nad already been determined. It meant that if work were not available on public works and farm labour were available, men refusing to accept farm work would not be paid sustenance.