GUARANTEED PRICES

Press, Volume LXXIV, Issue 22510, 19 September 1938, Page 14

GUARANTEED PRICES

TO THE BDITOS OT TOT POTSS. Sir —New Zealand being essentially a primary-producing country, and practically certain to remain so for many vears to come, it follows that internal costs must be kept to, as l°w fi gure as possible in order to meet world market conditions. This indisputable position has been, absolutely ignored, by the Government. Whether this is so owing to crass ignorance or not X do not know, but there it is. Internal costs have been swollen to a figure which means that a huge deficit will have to be borne by the unfortunate taxpayers., who, of course, include the dairy farmers themselves. The estimated net deficit this year is more than £900,000. Next year, if present conditions obtain. the deficit will approach £2.000,000; and this will go on expanding as costs increase, as undoubtedly market price of butter is practically fixed, as the mass of consumers switch off butter and turn to margarine directly a certain price is exceeded.-Yours^etc. kEALANDEß< September 17, 1938.