THE FRUIT INDUSTRY.

Hawke's Bay Herald-Tribune, Issue 160, 24 July 1937, Page 4

THE FRUIT INDUSTRY.

The chairman of the New Zealand Fruit Export Control Board, H. Stephens has assured a gathering of Hawke's Bay fruitgrowers that, although "big developments ' ' are expected in local marketing, the future of the industry lies in tlie export trade. It is difficult to believe that this statement is based on a realistic estimate of the capacity of the British market to absorb an increasing quantity of New Zealand fruit at satisfactory prices, says the Christchurch Press. New Zealand is only oue of the off-season* suppliers of the Britsh inarket; and in late years the competiton has been destructively keen. Indeed, the Coalition Government had so little faith in this particular outlot that it decided to restrict the price guarantee to apples and pears ex. ported through the Fruit Export Control Board to approved new markets. Exporters to the British market were to be assisted only by means of a price equalisation fund financed partly by a tax on exports and partly by a State subsidy. Thg,t scheme, which would have eased the pressure on the British market and might ultimately 'have weaned the fruit industry from its dependence on State support, was abandoned by the present Government in favour of a guaranteed price of 10/6 a case on all fruit exported. , From the point of view of the fruitgrowers, continues tho Press, the new axrangement is an excellent one, since it reinoves the need for seeking alternative export markets and for exploiting the domestio market more thoroughly. But if the fruitgrowers imagine that the export guarantee in its present forni is their guarantee of permanent prosperity, they are living in a fool's paradise. No policy which divorcas supply from demand can be successful in the long run. At present high commodity prices in the world markets and a favourable financial position at home are enabling the Government to subsidise all export industries which are in difficulties. When commodity prices fall again, as inevitably they will fall, export guarantees -will beeome an insupportablo financial burden. The domcstic market eould be, and ought to be, the mainstay of the fruit industry. and if fruitgrowers are capablo of looking beyond the immediate situation they will press the Government to evolve more dcfinite plans for improved local marketing.