PLACED IN PERSPECTIVE

Wanganui Chronicle, Volume 87, Issue 275, 20 November 1943, Page 4

PLACED IN PERSPECTIVE

COMMENT BY MINISTER

(P.A.) Wellington, Nov. 19. Commenting on the statement of the Fruitgrowers’ Federation, Mi. Nash said that, while recognising the great importance of the production of ‘ iruit in New Zealand, it was necessary to consider the affairs of the industry in relation to the economic position of New Zealand as a whole and to ensure that it was seen in the proper perspective.

“be position is that, prior to the oubreak of the war, the industry was in receipt of a State guarantee in regard to its exports. At the outbreak of the war, when export markets vanished, the industry was guaranteed an average return ot 5s per case, increased to 5s 3d on the average for the 1941 and 1942 seasons, the assistance given to the industry in 1941 amounting to a sum of £468,000. The following year the assistance was continued, the cost to the Government being £130,000. "Last season negotiations concerning prices were proceeding when the Prime Minister; Announced the general scheme of economic stabilisation. Special consideration was, however, given to the financial position of the fruit industry, and additional cost allowances were granted which had the effect of improving the growers’ position for last season as compared, with the earlier years of the war, and probably placing the industry as a whole in as good a position as it was under pre-war years. During the past year, under stabilisation, the growers’ costs have been firmly held, and at an interview which took place on the 18th. Indicated additional assistance which the Government was prepared to give for the forthcoming season, the effect of which would give the growers a higher return per case than they obtained last year. All enquiries which have been made into the’affairs of the maustry nave proved that quite a substantial proportion of the crops marketed are produced on a payable economic basis, and the economis survey which has now been offered is not merely a further enquiry but has, for its definite objective the placing ot the uneconomic portion of the industry on a satisfactory basis. “It is considered that, under war conditions and within the framework of the economic policy which aims at holding costs and prices, the offer made by the Government was an equitable one.”