POLITICAL CONTROL

Wanganui Chronicle, Volume 83, Issue 114, 17 May 1939, Page 8

POLITICAL CONTROL

MARKETING OF PRIMARY PRODUCE WRONG IN PRINCIPLE, SAYS MR. MULHOLLAND STABILISATION FOOL FOR WOOL [ Per Press Association.] AUCKLAND, May 16. Control by producers instead of by the Government of the marketing of primary produce was urged by the Dominion president of the New Zealand Farmers’ Union, Mr. W. W. Mulholland, at the opening of the thirty-ninth conference of the Auckland Provincial Farmers’ Union. Mr. H. M. Rushworth, provincial president, was in the chair. Mr. Mulholland said the day of independent marketing had passed. This condition was common to other countries, too. Referring to Government marketing of dairy produce Mr. Mulholland said there was much that was good in it, but the principle was wrong. ‘‘lt should not be in the hands of a Minister of the Crown,” he said. “Political control of marketing is worse than political control in any other walk of life.” Learning from what had already occurred, larmers should prepare the necessary organisation to take over the marketing of meat if that became necessary—a situation that in view of the recent restrictions might come sooner than expected. Auction Method Best. Referring to wool, Mr. Mulholland said the auction method of sale was probably the best so far designed but the fluctuations had been so great that it was impossible to estimate ahead what the returns would be. In that regard producers of synthetic fibre had a decided advantage, being able to quote one or two years ahead. “Price fixation is an impossibility, of course,” Mr. Mulholland said, “but it is possible to attain some degree of price stabilisation with some lasticity.” When in Sydney he had discussed tne matter and the conclusion reached had been that what was necessary was an Empire link-up of wool-producers as a special entity. This was possible by price stabilisation with some elasticity. ’ lines of the exchange equalisation pool operating in Great Britain. This pool would buy wool at the bottom price and sell wool at top prices. In between the ordinary trade would operate. Such pool would, over a period of years, make enormous profits and effect the desired stabilisation of prices. _________