NATIONAL PARTY

Wanganui Chronicle, Volume 80, Issue 110, 12 May 1938, Page 6

NATIONAL PARTY

MR. HAMILTON AT HAWERA PRINCIPLE OF COMPENSATED PRICES AN EQUALISATION SCHEME HAWERA, May 11. The National Party's support for the principle of a compensated price scheme for dairy farmers was indicated by Mr Hamilton who instanced the equalisation scheme in Australia as being on much the same lines ana eulogised the assistance it was picking to the Australian dairymen in comparison with the financial disadvantages he said were accruing ia New Zealand as a result of the guaranteed price. Mr Hamilton said that one of U.c country’s biggest problems was to balance its internal costs with the export prices for farm produce to keep a just comparative reward. and the same problem was seen when costs became too high in the manufacturing industries. The compensated price dealt with that problem. Farmers claimed that the soundest way to handle the problem was to keep internal costs from rising out of proportion to the farmers' income, thus leaving him on a lower standard o£ living than other sections of the community. Farmers naturally were all free traders and would be prepared to accept open competition, but if other sections were protected by tariffs and other legislation and the farmer was left to compete against the world, that was not fair treatment. To meet that situation was the task of the compensated price suggestion. The farmer would prefer that costs should be kept low enough for him to need no artificial subsidy, but if costs were forced upon them and on manufacturing concerns too it was not fail that the farmers should have to carry the whole burden. “The National Party has accepted the principle of compensated prices as a just principle,” said Mr Hamilton. The problem was met in Australia by what was known as an equalisation scheme, the principle of which was that if the costs were raised by extra tariffs and other charges against the farmer, the farmer was to receive similar treatment. Last season the actual “pay-out” of butter factories in Australia was on the average fully a penny a pound of butterfat above he average for New Zealand, and at the present time butter was being sold on the Australian local market at about 2d a pound above New Zealand local prices. The problem was, of course, easier in Australia, where about 60 per cent, of the .butter produced could be consumed locally, whereas in New Zealand only about 20 per cent, was consumed in the country. “The equalisation scheme in Australia is giving real assistance to the Australian farmer,” concluded Mr Hamilton, “whereas the guaranteed □rice in New Zealand has actually burned out to the farmers’ financial disadvantage.”

LARGE MEETING ( I*2: Pr«ss Association. | HAWERA, May 11. The Hon. A. Hamilton and Mr S. G. Holland addressed a meeting of 1000 electors at Havvera last night and were accorded an enthusiastic reception. Mr Hamilton's speech was along the lines of his address in Wellington on Monday, with particular reference to the compensated price principle for dairy produce and criticism of the guaranteed price. Mr Holland spoke on Labour's preelection promises and post-electioii performances. The meeting was the largest of its kind held here and was lively but good humoured.