THE GUARANTEED PRICE

Press, Volume LXXIV, Issue 22514, 23 September 1938, Page 6

THE GUARANTEED PRICE

“NO POWER OF REDUCTION” MINISTER’S EXPLANATION U’RESS ASSOCIATION TELEGRAM.) DANNEVIRKE, September 22. General approval of the guaranteed prices system was expressed by electors who met the Minister for Marketing (the Hon. W. Nash) at Eketahuna and Pahiatua to-day. At Eketahuna Mr Nash took the opportunity given by a questioner .of refuting a current rumour about the stability of the guaranteed price. The questioner said that he had seen a newspaper report to the effect that the Labour candidate for Pahiatua (Mr G. A: Hansen) had stated that the Minister had power to increase the price; but none to reduce it. On the other hand, the questioner had understood the Minister to say; in his broadcast address from the dairy conference in Taranaki, that the guaranteed pirico would have to be reduced if it were to be retained. “I said no such thing at the conference,” answered Mr Nash. “The Minister has no • power to reduce the guaranteed price after an obligation to pay has been created.” The Minister contended that the, obligation to pay arose when the Orders in-Council fixing the price for the season was signed. Some lawyers, continued Mr Nash, contended that the Government was under no obligation to pay flic guaranteed price, because the price fiid not become payable until butter was actually loaded on ships for export, and theoretically the Government might not accept dairy produce for export. Such a contention, said the Minister, meant, if the immplications were examined, that no produce could be exported. However, the position was that the price for the present season had been fixed by the Govcrnor-General-in-Council, and could not be altered. Prices fixed for subsequent seasons would also be unalterable.

There were 200 persons present at Mr Nash's meeting at Eketahuna at 1.30 p.m., and another 300 at Pahiatua at 5 p.m.

MINISTER’S ACTION CRITICISED

RESOLUTIONS OK SOUTH AUCKLAND FARMERS (rtCSS ASSOCIATION TELBOBAM.) HAMILTON. September 22. Although endorsing the recommendations of the Guaranteed- Price Advisory Committee, and complimenting them on their work, the South Auckland Dairy Association to-day emphatically protested against the, action of the Minister for Marketing (the Hon. W. Nash) in reducing the standards set by the committee. After long discussion the following resolutions were passed:— “That this meeting of members of the South Auckland Dairy Association, after perusing the report, unanimously endorses the standards established by the report of the Guaranteed Price Advisory Committee of 1938. “That this meeting of members emphatically protests against the action of the Government in altering the standards unanimously established by the Guaranteed Price Advisory Committee, thus reducing the return to the producer to such an extent that, if he employs all paid labour, he will net approximately Jd per lb of but-ter-fat less than he received last season, leaving him to carry steadily increasing costs by the use of unpaid family labour. ’“That this association regrets the attitude adopted by the Government in reducing the price recommended by the committee, which implies that the Government finds it impossible to pay the dairy farmer a price which will cover ascertained costs, although these have been increased, largely as a result of recent legislation. “That this meeting emphatically protests against the delay of the Internal Marketing Department in increasing the price of butter sold on the local market to the equivalent of the guaranteed price.”