Pool Moneys For Farmers Only

Chronicle (Levin), 15 July 1948, Page 5

Pool Moneys For Farmers Only

WELLINGTON, July 14. Mr. Nash, replying to a question asked by Mr.* Gillespie based on a statement made by Mr. W. H. Mulholland ' concerning the pool' aceonnts, stated: "It would be neithpj politically nor financially impossible to pay out to farmers the pool moneys referred to, in the event of a depression. The whole purjrose -of building up these moneys ha'd been to lim.it the intprnal repereussions of rising export, prices during good- tinies and to have something set aside to support producers"5 prices during- bad times. The fact that payments will be made to one seetion of the eommunity, tlie farmers, does not mean that other sections of the eommunity will be prejudiced. On the contrary, the maintenance of farm incomes will have beneficial efCects geuerally. Mr. Nash continued: "These farm incomes will in turn be spent and will help to maintain incomes in. other sectors of the economy. Tlie .fact that these moneys are at present invfest'ecl. makes no difference to the basic prin ciple outlined. These funds will not be taken away from the farmers. They will he used in accordance with the agreement between the Government and industries concerned. They will not be paid out to any other seetion oi the eommunity. The expressed undertaking of the Government is that the funds are beiiig held solely for the benefit of the farm ing industries concerned. Payments to farmers from these funds in time of falling overseas' prices, will undoubt edly help maintain farm incomes and thereby contribute to general stabilitv. The Government is always ready to discuss the whole question With- the appropriate farmers ' organisations. Under present arrangements it is the level fixed for the guaranteed price and other producers' -prices internally, in comparison with -vices received for export, which determines whether any call on the accumulated funds is neeessary. Primary producers at present have a full voice in negotiating both these price levej^. Regarding a suggestion to go. further than this and to pay out, in excess of prices received by producers internally, a substantial part of the accumulated funds, the effeet at the present time would only be to add to the inflationary dangers and at some later date to leave the farming industries without funds to cushion possible price recessions. This would be the very opposite effeet of economic stabilitv."