THE DAIRYMEN' S DECREE

Hawke's Bay Herald-Tribune, Issue 191, 30 August 1937, Page 4

THE DAIRYMEN' S DECREE

After very protracted deliberations tfiat have delayed the announcement far beyond the date for which it was originally promised, our Government has indicattjd the prices at which it proposes to take over the whole of the Dominion' s exportable butter and cheese t his season. At the moment this is all the information available to us. It is, however, iniimated tuai during the day, though perhaps not in time for to-day' s issue tfe Minister of Marketing, the Hon. Walter Nash, will provide for publication a full explanatory statement. This will doubtless be awaited with very deep interest not only by the dairymen directly concerned, but also by the general body of citizens conscious of the great importance of the industry to the welfare of the community at large. Any detailed comment must necessarily await the issue of the ministerial statement. Meanwhile, however, it may be said with fair confidence' that, going on the bare figures already given us, there can scarcely but be a feeling of very deep disappointment among those most closely and seriously affected — the producers themselves. Having regard to all the lengthy and varied discussions that have" been going on during the last few months, it is very difficult to imagine any explanation, bas'ed on these figures, that will prove satisfactory to them. The very modest increases, over last season' s prices, that have been made cannot possibly be hoped to cover the very substantial increase that has taken place in the cost of production. Thus, if last season' s prices were not^such as to leave any decent margin of profit for the dairymen, then the outlook for the season just begun must be anything but comforting. While awaiting the ministerial statement and to assist in appreciating it the better when made, it may be worth while to look at the considerations for which, under the Primary Products Marketing Act, regard was to be had in fixing prices for the current and later seasons. Those fixed for the past season, the first during which the scheme operated, were admittedly of an experimental character. The Act provides that in deciding prices for the present and future seasons regard should be had to the prices fixed for last season and to the following additional consider.ations : — (a) The necessity in the public interest of maintaining the stability and efficiency of the dairy industry. (b) The costs involved in the efficient production of dairy produce. (c) The general standard of living of persons engaged' in the dairy industry in comparison with the general standard of living throughout New Zealand. (d) The estimated cost to the department of marketing the dairy produce concerned and also the cost of the general administration of the Act. \ (e) Any other matters deemed to be relevant. The Act then goes on to say that, due regard having been paid to the foregoing, The prices shall be such that any efficient producer engaged in the dairy industry under usual conditions and in norma! circumstances should be assured of a sufficient net return from his business to enable him to maintain himself and his family in a reasonable state of comfort. This is a statutory essential that is not left to the discretion of the Government or of any commission it may appoint and special interest will attach to the way in which the Minister may attempt to sliow how compliance with it is to be found in the prices now announced. It is also of very definite interest to turn to the alluring pamphlet, "Guaranteed Prices, Why and How," issued and broadcast by the now Minister during the election campaign and .note how far the bright prospects then held out are being realised. Mr Nash then contemplated as something quite easy to be achieved an indefinite expansion of the oversea markets for our dairy and other farm products; The procedure it is proposed to follow (he then said) would be through the completion of agreements with Great Britain and other countries, under which the Dominion would. be given a market by overseas countries for a quantity of butter and cheesa and other primary products under a reciprocal undertaking by the Dominion to utilise the credit obtained from the sale of our exports for the puchase of goods for importation into New Zealand. Could anything be more simple? Yet Mr Nash himself has given ten long months of his valuable time to carrying this scheme out and yet has had to come home without finalising a single agreement such as those so confidently foreshadowed for the delectation of the electors. ^ •