STATE PURCHASE PLAN

Wanganui Chronicle, Volume 83, Issue 289, 7 December 1939, Page 8

STATE PURCHASE PLAN

NZ APPLE AND PEAR CROP I PROPOSALS APPROVED BY INDUSTRY FIVE SHILLINGS A CASE I Per Press Association ] WELLINGTON, Dec. 6. Proposals approved by representatives of the fruit industry and by the Government for the purchase and disposal of the apple and pear crop for the coming season were announced by the Minister of Marketing, the Hon. W. Nash, in a broadcast to-night. The Government has undertaken to buy all graded fruit at assembly points designated by the Internal Marketing Department at a price which will work out at five shillings. The Department, which is to be responsible for marketing within New Zealand, will take over the existing staff of the Fruit Export Control Board. The overseas marketing will be under the control of the Export Marketing Division. An advisory committee will be appointed to work with the Government to assist both it and the industry. Mr. Nash said the expected apple and pear crop for next season was unusually high. In addition to that, the British Government was not arranging to buy New Zealand s export crop, as it was doing with the country’s other main commodities. The war situation meant at a time when the country had perhaps a record crop, it migh? be without its main overseas market. The crop in normal times was not absorbed in New Zealand, for usually about 1,000,000 cases were exported. After referring to the Government's previous offer to representatives of the fruit industry, an offer they considered insufficient to maintain the industry, Mr. Nash said that the new proposals had been submitted by the Government at a representative conference on Tuesday. He had told the conference that the scheme would be carried through if the Government could get the support of the Fruit Board and the Fruitgrowers’ Federation. Mr. Nash said the scheme he had suggested to the conference was that the Government would be responsible for the purchase of the entire crop of graded fruit, both export and for the local market. The Government would undertake to buy all graded fruit at roughly an average of 5s a case. This would work out at approximately 4s lOd a case for fruit in the local market and 5s 2d a case for fruit for the export market. He did not know that the Government would be able to export any, but it was trying to make arrangements to get some shipping space. Some Growers Excluded. The scheme covered all apples and pears sold on the fresh fruit market, but growers who had developed their own private trade direct to consumers, including sales made at the orchard gate might, under certain conditions, be excluded from the scheme. One ol these conditions would be that fruitgrowers supplying customers directly would be required to send in regular returns showing sales made. “For the purpose of the scheme fruit will be graded for the local market into three grades—extra fancy, fancy and commercial,” said Mr. Nash. “This later grade has been given a great deal of thought by both the Agricultural Department and the Internal Marketing Department. It might not be exclusively the old commercial A grade. There may be in it some commercial B, but that has still to be worked out. For export, the grades will be two—extra fancy ana xancy. Here the difficulty is that shipping may not be arranged and the idea is not to arrange for any good grade for export unless th?:e is a certainty of an overseas market. Cancellation of Contract.'. “Some fruitgrowers have alieady made contracts iur t*ie supply u*. apples and pears for next season. it will probably be necessary to take steps to cancel exisLiig cuiuzacu, because they may c.estroy any possibility of competently marketing the whoie of the crop. I’hai wuuid not apply generally tu contracts in caanecaoa with by-products entered into by growers for the supply of fruit juices or for canning. Ah mat the Government wouiu oc concerned in would be that contracts would not interfere with the marketing organisation tnat will have to be bunt up. The Minuter said it was not possible at the moment to decide the exact date at which the scheme wouiu start. It would probably taxe six to eight weeks to make the necessary arrangements and it would possibly be about the end of January before it could be put into operation. The scheme was likely to cost the Government a fair amount of money, but the Government would try to arrange the marketing so as to eliminate losses as far as possible. The price was reasonable and it was considered would enable the fruitgrower to carry on. After hearing the Government's proposals, representatives of the fruitgrowers retired to discuss them. They again met the Minister later in the day and informed him that they would accept the scheme.