Mr. Holyoake's Remedy If Prices Fall

Chronicle (Levin), 8 September 1949, Page 5

Mr. Holyoake's Remedy If Prices Fall

WELLINGTON, Sept. 7. Spealdng in tlie Budget debate, Mr K. J. Holyoake (Pahiatua) said food production was still world priority No. 1 as tliere was a world shortage, an unlimitfid deftiaiul and high prices. Would those condit-ions, however, continue in definitely? Tlie' Gbver'nment 's Only re medy — stabilisation within New Zealand — was not enough. (tTie amber light, if not already the red light, wanied that present prices could not remain for. ever and we must plan well ahead for the production and marketing of our primary produce. The first essential was to plan for the greatest possible freedom for the farnter as this was the surest way of getting maxinunn production. We must maihtain the greatest possible freedom in international trade. To minimise the risk of tlie fail in prices, all producing countries should trv to regulate the seasonal flow of their produce and reasonable provision should be made to prevent the dumping of food surpluses. History showed thaf even small surpluses could break prices. Quantitive restrictio.ns, as practised in the past, were suicidal and were a confession of fallure.

A sblution might lie in dn extension of the butter stock procedure, such as had been developed successfully by the Joint Wool Disposal Organisation without which thefe would have been a breakdown in wool prices and chaos in world markets. "I would suggest to the Government that it should turn its attention to this probiem and seek to have set up an interhatiohal orgaiiisation With the necessary funds, to purchase and divert produce from overioaded markets," said Mr Holyoake, Such an organisation would not operate all the time but only becoine active .when surpluses occurred or threatened. Sueh an organisation would be eonstantly to survey the actual and potential output of tlie food producing countries and actual and potential demand of cousumer countries, and to disseminate that information to tlie advantage of all. The nucleus to the organisation might He in the Food and Agricultural Organisation already estai)lished. Mr Holyoake said tliat if commoditv surpluses were considered, seasotial produce could be lield in store and unloaded at the appropriate time. The organisation might be on a United Nations level but at least we should open discussions on it with British couiitries. Mr Holyoake said- that what he pro posed was not entirely new but the idea was a constructive one which should be taken up ufgently for tlie pro tection of all concerned. In time of emergelicv it would give reasonable stability of production, prices and markets, If the producing "countries did rtot eo-opCrate the result would be that when prices fell there would be a bitter trade war between tlie nations of the British Comiliop,wealth with the additional result of a loss of production and i'owered sta'nd'ards of liviiig all round, If and when falling prices and restricted niarkets bVertook us, we should, instead of wrangling over existing markets, . be joining together to roll the frontiers back for the benefit of all COheerfted. Farmers and traders should be lef't as free as possible within the genei'al §cheme to work out their own destitiieSi The psychological effect o'f such an organisation on buyers and sellers alike would be enormous and it could make a worthwhile cdntributiOn to world' peace and proeperity,