“TOO VAGUE”

Hawke's Bay Herald-Tribune, Issue 192, 31 August 1937, Page 8

“TOO VAGUE”

t Our Own Correspondent.)

Conditions That Govern Dairy Guarantees THE COSTS FACT0R

(From

AUCKLAND, Last Night. "The basis of the guaranteed price is regarded as tlie basis in equity, since the price is to be such that any efficient producer engaged in the dairying industry, under the usual conditions and in normal cireumstanees, should be assured of a sufficient net return from his business to enable him to maintain himself and his family in a reasonablo state of comfort," said Professor H. Belshaw, dean of the Faculty of Commerce at the Auckland University College. "TJnfortunately there can seldom be agreement on tho question of equity. Whatever price is determined, there will be objections on the score that it does not provide an adequate return to the farmer for the services which he

renders to the commirnity. The expren sions 'efficient produce^ ' 'usual condv» tions,' 'normal cireumstanees' andl 'reasonable standard of comfort' ara vague and incapable of precise .defini-* tion. ' t "Even if the price gives some pro^ ducers an ineome which is considered reasonable, there will be many fo* whom it 'will not be regarded as reason* able," he continued. "Further, thq price which may appear reasonable now; may not be reasonable as the season continues'because of the movements in, COStS. Nr" f "Whether or not the estimates of th« farmers' organisations of the increasai in costs in 1936-37' are correct, I am not in a position to say. I do not thinlc that they can be attributed entirely ta the Government's policy. It is, how-> over, pretty certaih that we may expect' further increases during next season^ In these cireumstanees, the comments already made by representative farmers illustrate the dangcr that the.pressura will be in one (lircetion — to raise th« guaranteed pricei"