MINISTER'S WORDS RESENTED

Press, Volume LXXIV, Issue 22509, 17 September 1938, Page 18

MINISTER'S WORDS RESENTED

CRITICISM , OF FARMERS* UNION

BLENHEIMr September 16. - "I think the Minister should mind his own confounded business and leave the farmers' affairs to. the Minister concerned with that department," declared Mr A. V. Badman. at a meeting . of the Blenheim branch of the Farm-, ers' Union last night, when condemning a statement by the Minister for Public Works (the Hon. R. Semple) in an interview here recently, that the farming community was more than pleased with the guaranteed - price. Mr Semple said the opposition did not come from the farmers, but from the Farmers' Union, which, did not represent the farmers of the country and never had,, "I think we should express resentment of that statement" added Mr Badman. "This business about the Farmers' Union not representing the farmers is all eyewash. Anyone saying so is talking through his hat." A member: The Minister might come over here and-stir us up.if you don't look out. Mr Badman: Well, let him. He might find someone;else has the gift.of the ' gab too. ■ The meeting resolved to .place on record strong ( resentment, .Minister's - --;. •

"EXPERT ADVICE REJECTED"

Hon; A. Hamilton On

Price Decision >

FIGURES HELD

INACCURATE

Election Assurance To

Farmers

fl'rom Our Parliamentary Reporter.

WELLINGTON, September -16

"The. Government is hoist with its own petard," said the Leader of the Opposition* the Hon. A. Hamilton, in; a statement issued this evening on the guaranteed prices for the current season, which were announced in the House of Representatives to-day by the "Minister for Marketing (the Hon. W. Nash).

"If the position were not so serious it would be almost ludicrous," Mr Hamilton said. "The Government produced its socialistic commandeer scheme with assurances of benevolent treatment for the dairy farmers, and in spite of warning notes sounded at the time went blindly ahead in the belief that it could ignore world market conditions. Now the Minister for Marketing has admitted that world parity must be regarded as a determining factor. He has had to choose between a large deficit in the Dairy Industry Account and innumerable deficits in the accounts of dairy farmers, arising from the high costs policy which his Government has deliberately pursued. "In spite of all the flowery verbiage which the Minister put into the Primary Products Marketing Act the farmer is being left to carry the .burden, Farmers may well feel amazed at the Minister's statement. "An advisory committee was appointed some time ago, representing both the Government arid the dairy industry, and its unanimous recommendation was that the basic guaranteed prices should ■ be 15.605 d per lb for butter and 8.775 d per lb for cheese. In a manner reminiscent of his juggling with the social security figures of the British actuary, Mr G. H. Maddex, the Minister has rejected the advice of experts and has arbitrarily reduced these figures to 14.89 d and 8.42 d respectively. The advice of experts means nothing to Mr Nash. His view is that the armchair Socialist planners In the Government know far more nbout farming problems than men who have spent their whole lives in close association with the dairy industry. ■ ■■. Figures Questioned

"There are now two different statements' as to the working costs of the average efficient dairy farmer. One is the considered opinion of experts, based on a consideration of evidence and statistics, and one is the despairing cry of a Minister who has to think of deficits running into millions before he can think of the dairy farmers which he himself has helped to create. Even the Ministers figures cannot be .accepted as accurate," Mr Hamilton said. "We know how .he was forced to vary his estimate* from time to time last year concerning the possible surplus In the Dairy Industry Account. Now he estimates a surplus of £600,000 for the season just passed, and uses this to predict a net estimated deficit of something over £900,000 at the end of the current season. "in our view, last season's surplus is likely to work out at something Hke £1,000,000. and this should provide for a corresponding reduction in the net estimated deficit at the close of tha present season; The Government's dilemma is purely and simply a result of Government, action. The "necessity for a .correct balance between eosts and prices has been ignored, and as a result the Government has gone a long way toward destroying the economic equilibrium of the Dominion." , party's Policy Stated . Another point mentioned, by Mr Hamilton was the possibility, amounting,, he said, almost to a certainty that higher labour costs would absorb a portion of the increase irij. the guaranteed price. The , legislation governing the wages of dairy farmworkers provided that wage-rates shbUld be varied in keeping with the guaranteed price, end a mandatory increase in the pay of farm workers was practically inevitable, i "What of the future?" Mr Hamilton continued. "We realise that the dairy farmers want stability in their industry—a fact which hardly seems to be appreciated by the Minister when he announces his price after nearly two months of the season have elapsed. In order to give the farmer that necessary degree of stability the.: National Party, when it takes over the : Treasury benches after the election, will honour all commitments which have been eh-' tered into by the Labour Government with regard to the current season's prices, while at the same time we will take immediate action to reduce farming costs ' ' "Our first step will be to return to the farmer the ownership of his own produce," Mr Hamilton concluded. "The commandeer principle in the Primary Products Marketing Act will be entirely removed. We will ' then discuss with the dairy industry all matters relating to marketing and finance. Internal prices and the level of farming costs will both receive attention, and we will assist the industry to attain a. position in keeping with its economic importance to the Dominion." ' '

LONDON EQUIVALENTS OF PRICES

MARKETING' DEPARTMENT'S FIGURES / fFrom Our Parliamentary Reporter.! WFXLINGTOyf, September 16. The London equivalents of the basic guaranteed prices for butter and cheese, which were announced in the House of Representatives to-day by the Minister for Marketing (the Hon. W. Nash) are: 124 s 3d per cwt for butter, and 73s 9d per cwt for cheese. These figures were supplied to-day by the New Zealand Marketing Department.

CONCLUSIONS OF COMMITTEE

Butter-Fat Payment Of

16.75 d Per Lb.

"FUNCTIONS PURELY

ADVISORY"

(P»B8S *S»OCUT!O* TEI*»»*M.)

WELLINGTON, September 16,

"After giving the fullest consideration to all the evidence presented, the committee has come to the conclusion that the price of butter, assessed in conformity with the committee's order of reference, should be calculated on a basis designed to provide a butterfat payment of 16.75 d per lb"," states the report of the Guaranteed Prices Advisory Committee, which was laid on the table in the House of Repre-l sentatives this morning. The report, which is a bulky document of some 30 foolscap pages, continues: "The committee therefore recommends that the prices of butter and cheese manufactured from cream and milk supplied to dairy factories between August 1, 1938, and July 31, 1939, and placed on board ship with the concurrence of the Primary Products Marketing Department for export from New Zealand, shall be set out as hereunder (it also recommends that the differential premiums for quality remain as at present):-Work-ing and maintenance costs 5.695 d per lb for butter-fat, capital charges (interest) 3.375 d, labour reward 9.220 d, a total of 18.290 d; less pig returns 1540 d, giving a butter-fat price tor, butter of 16.750 d per lb, equivalent to an f.o.b. basic purchase price per Jb of butter of 15.605 d. Butter-fat price for cheese, 18.750 d per lb, equivalent to an f.o.b. basic purchase price or 8.775 d per lb of cheese. "The present basic f.o.b. purchase prices for butter and cheese are 13.66 d and 7.75 d per lb respectively. It is, reasonable to estimate that the average market realisation for the 1937-3 H season will be 118 s per cwt for butter and 68s 6d per cwt for cheese. If it be assumed that during the 1938-39 season the same average market realisations, neither more nor less, will be obtained, and for approximately the same quantities of butter and cheese, the deficit on the season's operations may be estimated at £2,030,000 on butter, and £794.000 on cheese, making a total of £2,824,000. Against this estimated deficit is to be set any surplus for the 1937-38 season." The committee stated that it recogr nised that its functions were purely investigatory and advisory, and that it could not make a definite finding on the possible financial implications involved in the payment 'of the prices it recommended. The decision both on prices and financial implications was necessarily dependent on general considerations of Government policy regarding finance, and the committee therefore could only submit its recommendations in accordance with it? order of reference.

In another portion of the report the committee stated that its report was unanimous on all points. It reviewed at length tljs various aspects which it considered in arriving at its conclusions, and outlined the standards and their practical application on' which it based its finding.

DISAPPOINTMENT EXPRESSED

"CASE FOR SUBSTANTIAL

INCREASE"

BOARD TO CALL CONFERENCE OP INDUSTRY

WELLINGTON, September 16.

"After the very strong case for a substantial increase made out in evidence presented to the Guaranteed Price Committee on behalf of the dairy industry last month, the price as announced by the Minister is very disappointing," was the comment of Mr W. E. Hale, chairman of the Dairy Board, when the new season's figures were communicated to • him by telephone. Mr Hale went on to say that at the expressed wish of the industry as conveyed in a unanimous resolution at the last Dominion Dairy- Conference, supported by the conference of the National Dairy Federation, the New Zealand JParmers* Union and the South Island Dairy Association, the Dairy Board had instituted a comprehensive survey throughout the dairying districts of the Dominion. From the information thus secured it prepared a detailed statement providing irrefutable evidence of the need for a higher price if dairying was to be restored to an economic basis,, and if the dairy farmer was to be secured a just and reasonable reward for his labours in comparison with that enjoyed, by other sections of the'community. - The facts contained in the statement had-been fully supported by the independent evidence of witnesses on behalf of various- organisations in the industry, arid in face of tnese facts the Government's decision was hard t'o understand. The board would take the first opportunity of conferring with those sections of the -industry which joined with it in appointing the industry's representative on the Guarantee. Price Committee. Following that conference a comprehensive statement would be issued, probably some time next week.