NO CHANGE IN PRICE

Waikato Times, Volume 127, Issue 21258, 31 October 1940, Page 9

NO CHANGE IN PRICE

1940-41 DAIRYING SEASON CONSTANT FIGURE FOR PERIOD OF WAR DEFICIT OF £2,160,000 SHOWN IN ACCOUNT (By Telegraph. —Pre«s Association) WELLINGTON, Wednesday A clear indication that there will be no increase in the guaranteed price for the 1940-41 season was given the Dominion Dairy Conference by the Minister of Marketing, the Hon W. Nash, today. The Minister said also that the price, in general, would remain constant for the period of the war if New Zealand received the same price for her produce, but if there were exceptional circumstances the Government must come in. At the morning session the conference passed a motion, part of which expressed “strong dissatisfaction with ihe manner in which the Minister has evaded his responsibilities to the industry, as expressed in section 20 of the Primary Products Marketing Act, 1936.” When he arrived in the afternoon Mr Nash protested that before he had come he had been condemned in the resolution.

Discourtesy Charged Mr Nash said the invitation from the board was for him to come to the conference and discuss the problems of the industry. Before he had a chance to come he had been condemned in a resolution passed that morning. “Is that playing the game?’* the Minister asked. “Since I have been associated with the Government and the farming industry I have never seen a more discourteous resolution and procedure. Before there is any chance of discussion a resolution is passed condemning me in two particulars.” Mr C. P. Agar, a member of the Dairy Board: You have had two years, sir. Mr Nash: It may be Mr Agar’s way of doing it, but it is not the way of the average decent farmer. Mr W. E. Hale, chairman of the Dairy Board, who presided: I (Jo not think, Mr Nash, it is of any use pursuing those lines. Mr Nash: Was this resolution carried? Mr Hale: Yes. Delegates: Unanimously. Economic Conference Mr Hale: If you do not want cooperation, then say so. (Applause.) Mr Nash: I am saying this was not the way to get it. Proceeding with his address, the Minister said the Economic Stabilisation Conference had come to certain recommendations. Since then, with other members of the Government, he had been taking every possible step that could be taken to give effect to the resolutions. He had been hoping to come and discuss what had taken place at that conference. A Delegate: That is what we want. Mr Nash: I have been condemned before I got here. Continuing, Mr Nash paid a tribute to the farmers of the Dominion, and particularly the dairy farmers, for the splendid work they had done and the co-operative spirit there had been in the industry. Deficit In Account

The guaranteed price, Mr Nash said, had brought a greater element of stability to the industry than it had ever had in its history. The deficit in the Dairy Industry Account today was £2,160,000. The demand for an increased price at the conference last year had been fairly strong. He had said it was impossible on the evidence he had at that time to fix the price any higher, but that there were added costs. The Government would be glad to go into them and to the extent that they were proved to recommend that something should be done. The Price Tribunal, in determining the prices to be charged by manufacturers and others, allowed them to add any extra added costs, provided the tribunal was satisfied the industry itself could not carry them. A Delegate: We are tied to the price. Mr Nash replied that there were two qualifications to that. The price of fertiliser was being maintained at its preesnt level and the Government had done what it could to bring men back to the farms. It was paying 30s a week for six months and 15s a week for the subsequent six months for inexperienced labour taken on farms, and was paying married men who went into the Delegate: Why didn’t you give us the extra price so that we could pay our own men? Mr Nash: There was a considerable number of men in the industry to whom it would not be justifiable to pay the price. Proceeding, Mr Nash referred to the benefit of the rural housing scheme, and said the Government proposed to maintain the price of superphosphate. It would also take into account factory costs if they became abnormally high in excess of the amount allowed in the price. There was some suggestion in the resolution that the question of procedure in connection with costs had not been carried out, Mr Nash said. There would be costs incurred on the farm that would be greater than costs incurred when the price was originally fixed. The cost at the factory had not been completely met and it could not be met, in the Minister’s opinion, because the nation was at war. “The guaranteed price formula and procedure remains.’’ said Mr Nash, “with the qualification that we are at war and cannot do what we would do in normal times. When we get back to normal the dairy farmer will want all the help possible.” The Minister said he had talked to 20 farmers last Sunday and they had said the price would do them. What had hurt him was the statement that he had evaded his responsibilities. He was not the Government. He was one member of it and happened to be in charge of marketing and finance. He had never evaded anything. “I came here last time and told

! you we could not pay any more i money,” Mr Nash said. “I have j never worried about coming and I facing people who disagreed with j me. I have never had any other approach to the dairy industry than j with the object of getting a decent : standard of living for the farmer.” The Minister devoted a consider- : able time to answering questions put | by delegates. Request to Britain | In reply to one he said that in the i approach to the United Kingdom I Government the New Zealand Govi ernment put up the idea that if the l prices of goods the Dominion bought from the United Kingdom advanced j by more than 10 points the Dominion I should have the right to raise the question of the prices they paid for our produce. “We are paying 'much more for a lot of commodities we import,” said Mr Nash, “but we have not the heart to ask the United Kingdom Government for more.” Mr H. E. Blyde (Taranaki) asked whether the Minister would not apply the same principle to the farmers as he applied to other sections of the community. The worker had received a 5 per cent, rise in income and the public servant had got a rise. Mr Nash: The extra price would help the rich man more than the poor. A Delegate: There are no rich men. Mr F. W. Seifert (Northern Ward): Do you propose to pay dairy farmers on £260 or less the 5 per cent ? Mr Nash: I think there is something in that, if you will show me how to do it. Replying to a further question by Mr Blyde,«the Minister said in general the economy of the country would have to be organised on the basis of what it received for exports. There might be circumstances in which the Government would have to pay more than it received. After the war the country might get 68s or 70s for butter instead of 112 s, and that was where the Government had to come in. A Delegate: What wtuld it do at that point ? Mr Nash: The Government would have to ensure that the farmer received a bigger price. We would have to take steps to give him a greater share of the national income than he received from the actual price for his produce. If I am a member of the Government at that time I will guarantee it is done. A Delegate: If we agree to the stabilisation at the present figure, w ; ll the Minister give us an assurance no increases in the remuneration of any other section of the community will be allowed? Mr Nash: The Government is tak-

ing every step to give effect to the recommendations of the Stabilisation Conference. I cannot give you that pledge, but I would point out the Economic Conference recommendations were carried by representatives of workers, manufacturers and farmers. Mr W. Marshall, a member of the Dairy Industry Council: Is the conference to take it that with the exception of certain subsidies the Minister has decided the price for the 1940-41 season will be the same a 6 for the previous two years ? Mr Nash: Yes, in general. Mr Marshall: Is it fair that the man on the lower income should pay part, of the higher income granted to others? Mr Nash: The average farmer will have a bigger income this year than last year. A Delegate: Why? Mr Nash: Because of the season and because he is working harder. The Minister added that he would be prepared to discuss ways of subsidising farmers getting less than £260 a year as with others. Replying to a question by Mr Marshall on this poin + , Mr Nash said: “It is no use trying to pin me down in a conference like this. If you come to me I will discuss ways and means with you to give the same treatment to the dairy farmer on a smaller income as is given to people outside on a like income.” Mr A. J. Murdock, a member of the Dairy Board: Is it reasonable and fair to suggest an industry like this should have a differential price ? Mr C. J. Parlane. New Zealand Co-operative Dairy Company: Would you take into account the number of hours farmers work ? Mr Nash: I do not know. We could discuss that. Fixation During War Referring to Mr Nash’s statement that farmers were very much better off this year than last, a delegate asked: “Did the farmers find any more capital for their farms to produce that high income?” Mr Nash: They may have done. A Delegate: What are you going to pay us this year for our dairy produce ? You have not said definitely yet. Mr Nash: I have said clearly that the present procedure would continue. A Delegate: Is the guaranteed price to remain the same for the duration of war ? Mr NashVyriave not said it would

remain constant for the duration of the war. The price, in general, will remain constant for the period of the war if we get the same price for our produce. If there are exceptional circumstances the Government must come in. LONGER HOURS OF WORK CONFERENCE IN FAVOUR (By Telegraph.—Press Association) WELLINGTON. Wednesday A remit from Whangarei urging that “ in view of the absolute necessity for every section of the community making the greatest possible contribution to the war effort, the operation of the 40-hour week should be suspended for the duration of the war,” was carried at the Dominion Dairy Conference today. Moving the remit, Mr E. G. Appleton (Northern Ward) said it seemed to be a matter of common sense. It was not possible to put forward the greatest war effort on a 40-hour week. Mr W. A. McCracken (Northern Ward), seconding the motion, said there were many instances where staffs were prepared to work longer hours, but were not allowed to do so. Other speakers emphasised that increased hours should be worked without an increase in award wages.