GUARANTEED PRICE

Wanganui Chronicle, Volume 83, Issue 167, 18 July 1939, Page 8

GUARANTEED PRICE

GOVERNMENT’S AIM VIEWS OF THE INDUSTRY i I “COOL ASSUMPTION” REPLY TO MR. MULHOLLAND WELLINGTON, July 17. Replying to-day to the statement made on Saturday by the Dominion president of the New Zealand Farmers’ Union (Mr. W. W. Mulholland) concerning the guaranteed price, the Prime Minister (the Rt. Hon. M. J. Savage t emphasised that his main object was to learn from the | dairy farmers themselves whether they wanted to scrap the Government's marketing and guaranteed price policy. He pointed out that the present dairying season would probably end with the farmers getting in the’ aggregate about £2,000.000 more than they would have received if Mr. Mulholland had been successful with his propaganda against the Gov ernment’s policy. That, after ail. was the test, and only the dairy farmers themselves could say whether their opinions were truly represented by some of their representatives in Parliament and elsewhere. "In his statement to the Press on j Saturday, Mr. Mulholland appears to ; have only one object in view, and that , is to misrepresent my answer to a question put to me in the House of > Representatives by Mr. Barrell, Gov- j ernment member for Hamilton, in re- | ference to guaranteed prices and the attitude of the farmers towards the. policy of the Government," said Mr i Savage. “In reply to this question I stated definitely that the Government had not considered the matter, out that consideration would be given to • it at a later date. My answer was . based upon the alleged opposition to . the guaranteed prices and to the , general marketing policy of the Gov,- | ernment—a campaign against ' v n |C , h has been carried on by Mr. Mulho- ■ land and others in the country and in Parliament from the very inception of that policy. "If their attitude represents a genuine attempt to release the dair. farmers from a policy which was put j into operation as a means of finning. ■ them to be free of tne vagaries o. i the overseas market, it is obvious tn.a | the Government must take notice of u , and seek to learn the min ..' o. farmers on the matter. "Now. Mr. Mulholland says: in-.-Government deserves well of the industry for the eaergetic manner m which it established the market mg oi - | ganisation in London, an organisation, which. I think I can say. ha. the undivided and unqualified appreciation of all sections of the industry. It h? also done well in the organisation a. this end. both in regard to the necessary control of shipping and marac - , ing, but very specially in regarc. to | those measures which have reduce , , the overlapping and unnecessary competition in the menufac.tiring side of the industry, particularly in regard to those actions which have made the manufacturing .’ide practically 1 per cant, producer-controlled.’ "After that complete somersault. | continued Mr. Savage, "comes the j cool assumption by Mr. Mulhollan that "it is my intention to hand ove: to the industry all the present fi< i - ties for organised mark'-tin--. including facilities for operating the long- ; term stabilisation plan which is so vital a feature of •?.? Governments ynlicy as originally expounded. This will, of course, include facilities for

finance either through the Reserve Bank or through th? trading nenk . "Extraordinary Assu nipt ion” "That is an extraordinary assumption." said Mr. Sava? e. It me n that after building ar. orgai which Mr. Mulhollan i says de.-erve-vvell of the industry.’ the Government is now asked to hand it over to a lev. private individuals. Mr. Mulholland further assumes that of the Government’s lariti carry with it the control, ether wholly or in part, of more than one State Depart ment t partment. including the internal r.n i external activit is. Bank. "But that is not all. as Mr. Mulholland concludes his very modest suggestion by saying: ‘This a lion on th - part of the Government does not relieve them of the necessity of takin: such action as will place producers costs in proper relationship t their prices. Failing a reduction of costs which the Prime Minister has repeatedly refused to consider, th - only alternative apparent is for them to enable sterling to b Zealand currency tor the purpose o. paying the farmer at a sufficiently high rate of exchange to bring about this result.’ "May I again assure the farmers o New Zealand of my deep interest in their welfare and of my desire to have from them first han 1 a cleat statement as to whether they thin?, the present m I guaranteed price is an improvemen. on the old order of thing recall what the old order t eally was. It meant in actual practice that the farmers doubled their production over a ten years' peri ■ : with >ut a in : a penny' piece to their income. "Moreover, under the old sy- em. the farmers had to be content with the overseas prices ruling for their exports. Under the present marketing and guaranteed price system they are entitled to claim their share o’ the Dominion’s total production from all sources. "The present dairy season will probably end with the farmers getting in the aggregate about £2.000,000 mor; than they would have received if Mr Mulholland had been successful v ::r his propaganda against th? Govern ment's policy. That, after all. is th. test, and only the dairy farmers themselves can say whether their opinion; are truly represented by some o! their representatives in Parkamen and elsewhere. "Finally," said Mr. Savage, "Mr Mulholland wants to know what my proposals to the farmers really are My reply is that my proposals are ex pressed in the present government, marketing and guaranteed price pol icy. but I want to know from the farmers if they would favour scrapping that policy."