ARE GUARANTEES ADEQUATE?

Hawke's Bay Herald-Tribune, Issue 191, 30 August 1937, Page 6

ARE GUARANTEES ADEQUATE?

Our Own Correspondent.)

Farmer Receives No More Than in Free Market BUT HE PAYS MORE

(From

AUCKLAND, This Day. Cottimenting on. the guaranteed dairy prices, the New Zealand Herald says: " Disappointment is bo'und to be widespreacl among working dairy-farmers. The Minister of marketing has named prices that promise no better return than the overseas market may be expected to give. Taxpayers will devoufcly hope that such proves to be the case. "On the other hand, the dairyfarmer has to pay heavily-increased costs largely imposed by the operation of the Labour Government 's policy. These higher charges on production have been estimated at up to about 3.40d per lb. of butter-fat. Against that, the Government is giving a rise it price of .S8d for- butter and l.o5d per cheese, leaving the farmer to carry the remainder of the increased costs. He is compelled to pay out of his hardwon output for the higher wages and shorter hours of the town worker. "His reasoning will be probably on these lines: He is getting no more under the guarantee than he would expect to obtain under ordinary marketing. He must pay added costs. Therefore he is. a deal worse oif thau ho would have been without the Government and its guarantee. Nor does it help him to reflect that his labour and effort and those of his family are being exploited for the benelit of the town worker. "If the assumption is correct that the guaranteed prices fixed are no higher than the overseas market may be expected to return on the average, then the taxpayer has cause to feel reassured that he may not be called to make good the defieit in the Dairy Industry Account. At the same time, the Government accepts a grave risk on the taxpayers' behalf. "The disturbed international outlook may defeat the promise of dairy market. Moreover, should the Loddon market fall below 101/- a cwt for butter and 57/- for cheese, the •British Government may impose a levy to ?ubsidxsp United Kingdom dairy producers. That levy would be paid by the Government. A levy of ld per lb. on butter and £d on cheese lmported into Britain would cost the New Zealand Government about £1,800,000, calculated on last year's exports. "The Government should seripusly consider amending the present onesided system of iixing prices. The buyer should not have the sole voico: the seller also should be heard. The Farmers' Union has made the reasonable suggestion that prices should be eomputed by a tribunal presided over by a Supremo Court Judge; i'n other words, the farmers ask for an Arbitration Court such as the workers , have for lixing the reward of their labour and effort. Such a system could well be instituted "to supersede tbe present dictatorial method."