THE FARMER’S PROBLEM

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

THE FARMER’S PROBLEM

RISING COSTS AND FIXED PRICES VIEWPOINT OF INDUSTRY DAIRY BOARD CHAIRMAN’S STATEMENT I Ter Press Association.] WELLINGTON, Dec. 6. “The viewpoint of the industry, as expressed at the Dominion Dairy Conference last week, was very largely along the lines that the Minister possessed wonderful qualifications in the matter of argument.” said the chairman of the New Zealand Dairy Board, Mr. W. E. Hale, commenting to-night-on the statement of the Minister of Marketing, the Hon. W, Nash, on the guaranteed price, published to-day. “If the Minister’s lengthy arguments are correct, and if the farmer is doing as well as the Minister suggests he is, there need be no worry about increased production.” Mr. Hale said. “The facts are that production has dropped seriously during the last two seasons, that the trend downward is continuing, that the industry Is anxious to make a united war effort for greater production, but. is hampered because of steadily rising costs and the cut in price made by the Minister. The Minister lengthily traversed much of the early history ot the guaranteed price scheme and even went back to the depression days. The farmer says the whole question can be brought down to very simple terms. The Government, as recently as just before the last election, stated in the most clear and definite terms that the guaranteed price was designed to cover all the farmer's costs of production, and Mr. Nash himself, at las. week’s conference, repeated that statement. The specialist committee, on which the Government had the major representation, recommended the price to be paid for dairy produce for the 1938-39 season. The Mmister, without any evidence as to the incorrectness of its findings, arbitrarily reduced this price by an amount equal to .870 d a lb. of butter-fat. Farrs, costs recently collected, which have been kept by public accountants, show that since the findings of the committee were made the amount of at least ,58d a lb. ot butter-fat has accrued as a result of increased costs. The industry, therefore, maintains that, without making any allowance whatever for costs that are still increasing steadily, the Government today is paying at least 1.451 d a lb. or butter-fat less than it is entitled to pay in the terms of its own legislature. That in essence is the farmer s problem.”