GUARANTEED PRICE

Dominion, Volume 32, Issue 154, 25 March 1939, Page 12

GUARANTEED PRICE

Attitude Of Dairy Industry BOARD AS ADVOCATE By Telegraph—Press Association. DUNEDIN, March 24. The guaranteed price in relation to the farmer and the Dairy Produce Board’s reaction to legislation in that direction was discussed today by Mr. W E. Hale, chairman of the Dairy Board, at a ward conference - The dairy farmers, he said, had agreed to a guaranteed price as an accepted principle of the Government and had mutually agreed upon a standard of costs of production, ‘which should be altered only under very exceptional circumstances,” and the dairy industry was not prepared to accept any variation of the standards as recommended by the 1938 advisory committee. Under today’s conditions, he believed any return to the basis of accepting an open market price was unthinkable. He did not agree with the suggestion made by the Minister of Marketing, Mr. Nash, that the guaranteed price for next season should be the same as at present obtaining. The suggestion that the expert committee should go into the question, of farm costs simply meant the reopening of the inquiry which was satisfactorily completed last year. Mr. Hale contended that under the system by which the whole of the dairy produce was purchased by. the State it was essential to have an intermediary body acting as advocate for the dairy industry. Such an organization .must, of course, accept the broad outline of the Government’s policy, but at the same time it should endeavour to obtain for the producers the best possible terms. The Dairy Board had statutory powers and was the representative organization of the producers and, as an indication of its value to the industry, the cost of the board was recouped many times over by way of the. increase in the guaranteed price, which, was largely the result of the com incing statistical evidence collected and analysed by Professor Tocker, Christchurch. Referring to the future of the guaranteed price, Mn Hale mentioned a two-hour interview with Mr. Nash. He had reported to the Minister the attitude of the dairy industry—a unanimous attitude—that the suggestion of the guaranteed price for next season being the same as announced for the present season was not acceptable. It was imperative that the Government should accept the prices and standards recommended by the 1938 advisory committee with adjustments as to known increases in costs. “If this proposal is acceptable to the Government,” said Mr. Hale, “it will place price fixation on a sound foundation and the question will simply be left foj discussion and decision between the industry and the Government as to what adjustments of prices may be necessary because of increases in costs.