SALE OF DOMINION'S PRODUCE OVERSEAS

Chronicle (Levin), 31 August 1946, Page 7

SALE OF DOMINION'S PRODUCE OVERSEAS

-Press Association

Opposition Asks Pertinent Questions In House

By Telegraph—

WELLINGTON, August 30. Transactions iiivolving tho saJe or New Zeaiand's primary produce ovor.icas occupied the attontion of the llouse of Represen ta ti ves this afternooii during a discussiou on the Iiiiprest Supply Bill. Mr. Nash oxplained that recent restrictions on tho sale of hides, pelts anu ; calfskins had been 'to* reserve a portion of the Dominion \s output for Britaiii against the competition of inflateu iirices in the United States followmg ihe liftina of price control there. Mr, W. J. Broadfoot (.Waitomo) said he had never .jeen couviuced of anything else other than thut the money paia uy the United Kingdom for New Zeaiand's produce beionged to the primary producers and they had been pillaged uumercifully by the Focialist Government. lle thouglit it v\as time that the .eadors of tlie meat and dairy industries Oue amo a great doul inore wary of the Minister of Finance than they had been in ""trhd " pust.* Tf tho Government hacl uothing to hide dt should mahe known lo tlie Jtiouse all amingements for the sale and payment of New Zeaiand's produco to Britain. Hon. W. E. Parry said it was sig-nilir-ant that no.citv Members of tlie Opposition liad spoken. The reason. was, that- the city Members did not elaiin that.. the money beionged to the farming comniumty. Mr. J. T. Watts (Riccarton): I wiJU claiiu it. I am a city Mernber. Mr. Parry said that the attitude ot" the Opposition was to appeal to the: pcejudices of 'he people. The Opposi- , tioii had attributod ulterior motivus aiid, dishonesty to the (rovernmont in these, tiansaclions and tliis also incriminated; representat ives of the meat and dairy1 industries. | Mr. \V. A. Blimit (Patea): Oh 110.-' . Mr. Parry: You can't incrimiifate. the Government without incr-iminating, those men. Mr. J. N. Massey (Franklin) said the Government nad he!d to tlie point. oi \iew that the produce of the farmers . 'clonged to the people as a whole and not to Ihe producers. If the producers wero given a full retuni for their produce, 'tho Government would find that. production would increase. M'r. Nash: Does .tho Ilonourabie Member suggest the- producers are not doing their best ? . . . ; SFr. Massey said Mr. Nash woula never understand the farmers' mettlality or appreeiate fost increases witn which the farmers had to eontend, necessitating their reeeiving a better revvard. Mr. Massey said year after yenr the Govennnont had withh'eld froin ihe farmers, portion of the return fo.r their produce. During the past fortf night, an agreement had been reaehed between the New Zealand Government and producers on the ono hand, and the British Government bn the other hand, concerning the price to be paid tor dairy produce, su.ppljed. to Britain th.is season l>ut Members of the Opposition kijew nolhipg about the terms of that agreement un'less they went cap in haua to tho Minister or met him in the corridor and questioned him. The proper wn.v to release detnils of sucli ugreement was to the. Members of Ihe Houso •is representat ives of the people. Mr. Massey .-uid that during recent monthfl priees had soaixvl in tho I'nited States ••s the result of the lifting of price controls there. The efTect in New Zealand as that priees of hides, skins, etc., in the Douiinion went up at once. But the

Government intervened virtually pro hibiting the sale of those commodities. | VVhat was the reason. fof that'/ WouJd j tho producers receivo any increase ilnder the arrangements which tlie Governinent was now negotiating Mr. Nash said if Memoers wero J anxious, he could tell the whole stor.v ! concerning the iump s.um . paymenis j ag^in, but it had been told to the iiouse j before arid there was hothihg new to be ! told. . • Discussing calfskins, ' Mr. Nash said j our trade in this commodity was traiiitionally with the Lnited Statcs and Canada, with smaller quantities goirig to Europe, Australia and Britain. Wiien 0:P..A. controls wero removed in the Enited iStates, priees soared to a point where they becaiue purely speculati \ v and were unrejated to value. Our our ; put of calfskins this year would iie j about 850,000. Until July 24, very tew j of them had been sold, but on that day ' the British Government cabled askmg | Neiv Zealand to reserve 550,000 cali 1 skins for Britain 's neods. Fnfortun ; ately that cable was mutilated in Uans- : mission and the time 'taken to refer 11 j baek to London proved snftieient tor • iieWs of the British Government 's re- ! quest to reach Canada, United -States'j ''and Australia. The result was that : orders to buy calfskins poured into | New Zealand from rhese countries and in two davs more than half of the t Dominion's output was sold forward at i all sorts of priees up to 54 cents per lb. , Gi'defs had been plhced for 280,000 tor Canada, 100,000 for Australia. 45,000 ' for Belgium, 0000 for Holland, 2800 for ■ France, 20,000 for tlie United Btates » and 20,000 for Britain. Mr. Nash said ; this meant insullicient calfskins were j Left to meet Britain 's noeds and New : Zeaiand's own requirements of 250,000. Bteps wero then takou in an endeavour .to' meet Britain 's needs and tio ono would quarrel with that. Tho Govorn- , ment decided that in view of the spevu- j lalive orgy which was goiug on, that priees must be stabilised. instruction 1 was given through the Department ot Agriculture that the payout for skins should be 32d per lb. aml that Ihe differcnce between this price and tlie speculativc priees being ollered, should be paid into the Bobiiy Calf l'ool for the benefit of the producers. That instruction virtually stopped the sclling. The whole of the arrangeinenl- niade was exclusively for thc benelit oi' tlie producer. It was designed lo soo thai the producers and not the speculators feaped the advantage-of tlie price increases. The producer-s were consulted and knew exactly where the Government stood. [ Discussing arrangements niade tn ratahi suflicient -of the ouljmt for New Zeaiand's own needsj ' .Mr. Nash said arrangement was niade with the Bo.uiy Calf l'ool 'to buy at 24 'cents per lb. coinpared with 16 cents paid previously. There would be a eheck up to ensure that skins used in the- Dominioii would ifot-be made .up into Ipxur.v. gbods. • Rovertiug to the, Juipp sum paynients, Mr. Nash said it was clear timi Britain made them as a mcaus of reducing tlie disparity between her own exjiort prico> • at the time and New Zeaiand's exporl priees. It was not an acknowlotlgeiiiem that New Zeaiand's priees were too low, but was the mcuns of bridging that disparity without. exposfng Britain lo de mands from other couiitries for a reiluction in her own cxport priees. Alr. Nash said that from tlie l>oginning, New Zealand had received a faii- price from the United Kingdom tor all the Dominion's produce. '1 liis year New Zealand had received from tlie United Kingdom a price which ino Meat and Dairy Boards sought. Those priees were 175s cwt. foi liutter and l(l2s 6d for cheese. ,Did anyone .suggest that the dairy and meat induslry sliouid get £4,(IU(I,C0U on top of tlie price asked for? The increased price from Britain to New Zealand was born hy the whole community who were entitieu to sliare the additioual payment. M. Massey: Wliat are you goiug to pay out? Mr. Nash: This is to be decided by Ihe Farmers' Federation and Stabilisation C'ommission. During a period of eross inter jeclion, Mr. Jolinstone (Raglan ) asked ihe Al i xiister: "Wliat is tlie object of tlie pajiers not being laid on (he taldc.'"' M r. Nash replied that he saw no earthly reason if tlie stateinents were to ne used for an lionest expression of opinion. Mr. ISheat: Is that a retlection on us4 * ; Mr. Nash: Oli, no. Mr. 11. G. Gerard (Mid-Uanlerlmry) : Don't we matter. Mr. Doidgo: We are onjy pujqiels. Mr. Nash then went on tn say that thc price paid to farmers was based on the position of the farmers on December 15, 1II-J2 — when slabilisation began — and everyone agreed that that was a I'air price. llc said that every proved increase since that dalo had been paid ' up. Mr. Doidge asked the Minister for a serious answer to ihe question.' " Whv won'L you pul your papers ou the table of the House?" Mr. Nash said tliat representat ives ' of'the iiulustry -had seen titi; documcnls : and were satislied. "If we could linve ■ au honest excjiange of views with tlie, .nfoniiation ohtained to be used -fairlv/ there would be no object ion. " he said. j Mr. K. ,T. Holyoake (Pahiatua) said, it was only a half statement to say ulia.1 tlie Meat and - iDairv Boards had j .'eceived the priees they asked for. All ! clie Dairy BoarcV had been asked to do , was tb calctilate the increase in costs j of the industry. Tt was true that those1 costs were granted lnit uot the price i that the dairy indusl ry had asked. I he Avhole question had been surround ! ed by mystery and there had been aj distnrbing lac.k of infornuit.ion. "Mr. j Holyoake said all availablc evidence before tlie flouse poinled to Ihe fact | that Ihe lump sum payinenj should gOi to tlie farmers or be paid into tlie j (Mabilisaliun Account. The luiprest Supply Bill was passed and thc Iiouse adjourned at 5.15 p.m. until 2.30 ji.nt. ort Tuesday. ' 1