MINIMUM PRICE

Gisborne Herald, Volume LXVI, Issue 20023, 23 August 1939, Page 16

MINIMUM PRICE

GUARANTEE PROPOSAL ALL SHEEP FARM EXPORTS NATIONAL INCOME LEVY SCHEME FROM MAT A VAX A scheme to provide a guaranteed minimum price tor all sheepfarmers' exported produce is to be laid before the commission inquiring into the position of the sheepfarmers by a committee representing the hill country sheep farmers of the Matawai and Motu districts. The proposaL is that a levy of 3d per £ on the national income, estimated to produce £1,750,000 annually, should form the nucleus of a stabilising fund to be controlled by a board on the lines of the Moat Pioducers. Board, and that when prices rise above the minimum level set the sheepfarmers should contribute from their excess income. A plebiscite of sheepfarmers on the matter is also suggested. A meeting held in Matawai decided to ask the Government to give legislative authority to the following scheme: ‘‘That the Government be asked to give legislative effect to the following resolution: — Method of Control “A guaranteed minimum price for all sheepfarmers’ exported primary products by: “(a) The appointment of a tribunal to ascertain the approximate costs of production of all sheepfarmers’ primary products, such costs to form a basis for the computation of the minimum price; “(b) The levying of a tax of 3d. in the £ per annum on the national income, such tax to form the nucleus of a stabilising fund, or, if necessary, to form an interest and sinking fund for any overseas or other loans which may ibe required to finance the scheme; “(c) The appointment of a controlling board to review the minimum price from time to time and to make necessary adjustments, the board to consist of elected representatives of the sheepfarmers, elected representatives of the non-farming contributors, and Government representatives, such board to be constituted on the. lines of the Meat Board, or a reconstituted Meat Board to take control. Disposal of Excess “It being realised that under the scheme many of the contributors to the stabilising fund will be other than sheepfarmers, it is considered necessary that the sheepfarmers should carry a reasonable share of the burden. Therefore, it is suggested that when the market values for exported products are definitely above the guaranteed minimum price the sheepfarmers should augment the stabilisation fund -by a direct contribution of a percentage of the excess on the basis of a graduated scale working from a minimum to a maximum, For example, say the minimum price for wool is 9d per lb.:

“All other sheepfarmers’ exports should be on a somewhat similar basis, Justification for Tax “The existing channels for the distribution and disposal of produce to be retained and, where possible, improved and extended. “With regard to a justification f.of a tax on the national income, it must be remembered that the stabilisation of the farming industry would have a beneficial effect on the whole country by: “(a) A steadying of the incomes of producers and their purchasing power; “(b) Thus assisting in turn to do tha ame for the secondary industries and their employees; “(c) Steadying the sources of Government revenue and thus preventing the disastrous consequences if extreme fluctuations in prices. Plebiscite* Urged “That a plebisc te be ‘alt n of an -mers whose main occupatio . is heepfarming. “Many farmers did not apply to the Mortgage Adjustment Commissions because they Avere in hope of meeting ■heir commitments, hut owing to the increase in production of synthetic wool and the quota on meat, which may be increased, coupled with the higher cost of production qnd low level of prices, they now find themselves in difficulties, and remedial measures of some sort are necessary. “It will be seen that the general 'object of this scheme is to give stability and confidence, not only to primary producers themselves, but through them to the secondary industries also and, indeed, to all business oeople and wage-earners in the Dominion. Explanatory Notes “The national income is estimated by the Hon. W. Nash at £170.000,000, but by Mr. Maddox, an English actuary, at £140,000,000. Threepence *n the £ on £140,000,000 gives "1.750,000. “Industries carrying a guaranteed orice are not included in the scheme, 'hough if this scheme is adopted it is thought that all exported products probably will be included. “The example of 9d for wool is air example only, and is not intended as a suggestion for the minimum price.

If market Payment to Fund: rises to Excess. % of per bale, d. d. . excess. £ s. d. 10 1 5 1 6 12 3 15 13 6 14 5 25 1 17 6 10 7 35 3 13 6 18 9 45 6 1 6 19 10 50 7 10 0