A NEW DEVELOPMENT

Bay of Plenty Beacon, Volume 1, Issue 84, 6 November 1939, Page 6

A NEW DEVELOPMENT

THE PRICE OVERSEAS GOVERNMENT'S EXCUSE TO FARMERS "There is quite a new development to-day," said Mr Sinclair, in dealing with the Government's refusal to raise the guaranteed price. "This is the contention that the price of butter must be dependent on the price received from the overseas market." When this argument was put up in the first instance, and some farmers asked how the Government Avas prepared meet a possible deficit they Avere laughed out of court, by those who declared that they would meet anything of this sort by economic insulation. If that was so, why not to-day? "I'll tell you why!" said Mr Sinclair. "It's because the whole theory was so much hot air. It was absolute foolishness and crass stupidity to believe that wc could ever isolate ourselves, so as not to lie dependent on the prices realised in the overseas market." He read a circular from the Labour Parly issued prior to last election in which all farmers were assured of a guaranteed price, based on the principle of a fair and equitable return for labour commensurate Avith the standard and earnings of other sections of the community. What the farmers had got Avas merely an equalisation scheme Avith no compensation for the tremendous costs which Avere piled up against him.