FRUIT INDUSTRY

Gisborne Herald, Volume LXVI, Issue 20099, 20 November 1939, Page 11

FRUIT INDUSTRY

EXPORT POSSIBILITIES

NELSON REPRESENTATIONS

STATE PLAN INADEQUATE A meeting of the emergency committee of the Nelson Provincial Progress League was held in order to discuss with fruit industry representatives, tlie Chamber of Commerce and the Advance Nelson Association, the position of the industry in its immediate difficulties. Following a general discussion, it was resolved to send a deputation to Wellington lo again interview the Minister of Finance and Marketing, the Hon. W. Nash, on the subject.

Mr. H. E.. Stephens, a member of the Export Control Board, said that up to three years ago, and since 1909, tne industry had cost the Government guarantee very little, except in 1926, when, as a result of the coal strike in England, the Government had lost £BO,OOO. Seven years ago the then Government had suggested that growers should build up their own funds independent of the Government guarantee. That course had been decided on, and in three years the fund had readied £53,000. With the advent of the Labour Government, the matter of guaranteed prices had entered, and Mr. Nash had stated there was no need for the fund, nnl it should be liquidated back m the growers'. The Fruit Board then had no option but to disburse file fund.

The greatest difficulty facing the grower at this period was the question of financing the crop, said Mr. Stephens. The outlook as far as export this coming season was concerned was not hopeless. Australia and Canada were budgeting on tiro assumption that they would not be able to export any fruit, and if only South Africa and New Zealand were available, prices would be high, so that, the speaker said, Mr. Nash was not running much risk when he had made an offer to take 1,000.000 cases. It was anything but a generous offer, and the industry had asked him that the price should be 0s at the assembly point, not 7s, f.o.b. No bank, according to the speakers investigations, would finance this 7s f.o.b. Already the position was acute for many growers. Under the Government’s proposal there had to be a general pool, and and in order to pack 1,000,000 caes for export the grower had to pack 3.000,000 cases. The net return to the grower on the one-third of what he packed was 5s lid and on that figure he would be in debt for packing and would not have anything for production costs. It was definitely not possible to carry on in preparation for the new crop under the Government’s proposal.