GUARANTEED PRICES

Wanganui Chronicle, Volume 80, Issue 137, 11 June 1937, Page 8

GUARANTEED PRICES

NZ DAIRY INDUSTRY MINISTER DEFENDS SYSTEM REPLY TO RECENT CRITICS [ Ter Press Association. ] DUNEDIN, June 10. In full defence of the guaranteed prices plan the Minister 01 Agriculture and acting-Minister of Marketing (the Hon. W. Lee Martin) gave a comprehensive explanation 01 the Government’s policy to the South island Dairy Association to-aay. lie quoted figures to contradict the criticism that many dairy factories had not obtained the amount of the guaranteed price lor their produce, me

Minister gave little hope of the (inferential payment for cheese being increased to 3d per 10, and did nm anticipate that the f.o.b. ocean-steamer-policy as a point at whicn me Government assumes ownership Ox produce would be changed. The Minister said tnat it would be recognised that the marketing side ox the industry was on a better footing than ever oetor<*. Some months ago an attempt was made to show that the fall in prices of dairy produce on the London market was attributable to the Government’s policy, but they could compliment themselves on the position to-day. He ottered his congratulations to the dairy industry and the Dairy Control Board for the measure of co-operation given the Government. He would not claim 100 per cent, success in obtaining support, but the Government s policy was framed on the right lines. Some farmers in the North Island felt that the guaranteed price was not sufficient. Whether the Government could satisfy all ns was doubtful, but as a prouucer he was among the many who were satisfied. Sincj the guaranteed price was brought, into operation he Knew from his bal-ance-sneet the state of his improved position. The price was fixed on the average basis of prices in the pas*, eight to ten years. Every body knew ot the system which the Government proposed to introduce lor the computing of the price, which was fixed by Cabinet after a report was made by a committee. "We claim that we gave a generous interpretation of the rule by which the price was to be fixed,” said the Minister, ”and I believe, with all sincerity, that by fixing the price we have stabilised the position of dairyfarmers, stopped tne drift off the land, made it possible for farmers to budget and provide a security not enjoyed previously.” Investigations which would lead to the fixation of the price for the coming year were being carried out by a committee, only one member of which (Mr Ben Roberts) was a Labour man. The committee was representative of the industry and its uuty was to consider, in the public interest, the maintenance of stability of the industry.

The Minister elaborated the points to be considered by the committee. All the effects of the Governments legislation would be taken into account in fixing the price. Obligations in the Act covered all the points raised in a remit on the association’s agenda, and he suggested that they snould wait till the committee's report was released. The Government was more desirous of helping the farmers than any previous Government. Committee representatives of the industry shoulu be giver, credit for their anxiety to do the right thing. The result of the payment on a basic guaranteed price for butter and cheese and for quality premiums for butter and cheese ur nigher grade was discussed by Mr Lee Martin. In an address recently Mr Bodkin, M.P., criticised the Government’s guaranteed price plan and asserted tnat the actual guaranteed price was being paid only for a certain grade of butter and cheese, and that, in consequence, many dairy factories had not actually obtained the amount of the guaranteed price for their produce. The facts of the matter were as follows:

“A basic guaranteed price of 12 9-16 d per lu. for butter is paid for butter scoring 93 to 931 points. A basic guaranteed price of 6 13-16 d per lb. for cheose is paid for cheese scoring 92 to 92* points. Of the total shipment up to May 31, 1937, of creamery butter, 38.80 per cent, re-

ceived the premium of Is 2d per cwu over the guaranteed price; 43.5 per cent, received the guaranteed price; 9.7 per cent, received 2s 4d per cwt. below the guaranteed price; .35 per cent, were second grade, in fact, 82.Jj per cent, received the guaranteed price and over, and 17.65 per cent, received below the guaranteed price. ’’Of the cheese, 2.55 per cent, received Is sid per cwt. above the guaranteed price; 19.25 per cent, rejeived Is 2d per cwt. above the guaranteed price; 56.15 per cent, received the guaranteed price; 19.85 per cent, received 7d per cwt. below the guaranteed price; 2.2 per cent, received 2s 4d per cwt. below the guaranteed price. A summary was that 77.95 per cent received the guaranteed price and over, and 22.05 per cent, received below the guaranteed price. ‘That shows quite clearly that the guaranteed price has been paid to practically the full extent in comparison with grading,” Mr Lee Marin added.