Dairy Guarantee

Hawke's Bay Herald-Tribune, Issue 211, 22 September 1937, Page 3

Dairy Guarantee

-Press Association.)

MR NASH'S DEFENCE "Marketing Has Been Remarkable Success" SIGNS OF PROSPERITY

(By Telegraph

WELL1N GTON, Tliis Day. The Minister of Finance (Hon. Walter Nasli), in replying to Opposition criticism in the course of the Address-in-Reply debate in the Hou'se of Representatives to-day, said that under a pre-

vious tiovernment wages Had been cut, pensions reduced and serviccs restficted in every way, whereas the present Government was endeavouring to remove the indictment that ihe Dominion had reduced its social services. He quoted figures both in Great Britain and New Zealand showing that the Dominion 's expenditure on social services compared mdre than favourably with similar per capita payments in th'e Homeland. Ho stressed the fact that the prospects for employment of young people had been greatly improved and the Government was doing everythihg possible to see that young people who had missed their opportunity during the slump would receive a chance to be ernployed in industry. Mr Nash. instanced the increased number of marriages whieh had taken place, stating that there was no better means of increasing the country 's population than to encourage young people to mary. Referring to wages increases, he said the maximum benefit to the country came with high wages. It did not matter how high commodity costs went as long as wages went higher and he thought there had nevcr been a period in the history of this country when people were bettei able to meet all charges incidental to home life. Mr N"ash thon proceeded to deal with the position of industry, ' stating that last year conipanies' profits had increased 16 per cent. Mr Nash xeferred to the fact that while he had been in England a series of articles had appeared in a London paper, tho Evening Standard, advising linanciers not to 7brest money in Now Zealand but to invest it in Japan. He contended that the articles had been sent from New Zealand and classed the action of the person who sent them as disloyalty to his nwn. countr.v. Shipping; The Dairy Bcheme. Mr. ~\Y. Nasb rcferred to Mr. Hamilton Js statement that the Government had been unable fo secure as satisfac- . tory a shipping contract as had been anticipated. He pointed out that wher private shipping companies discrimiuated against a Government in increasing rates, it was discriminating against that Government 's country. Ho country could allow that. He did not think discrimination against tho Dominion was intended by the shipping companies, but the Government at present had the matter under consideration. The Oposition, said Mr. Hash, had alleged that the Government 's dairy marketing schemo liad been lying on the desk of the Dairy Board before the Government came into office. He thought officials of the Dairy Board would be the first to admit that the Government's scheme was not the same as that which had been prepared by the Dairy Board. It had taken the Opposition 15 months to find out that tho marketing schecae was going7 to be a success and it was now trying to see that the Government was not going to get tio credit for it. It was the best marketing scheme for any produce whttever operating in London to-day. fepcaking of guaranteed pricea for dairy produce, the Minister said he had reeeived a number of letters froni dairyfarmers expressing- completo satisfaction with the guarantoed prices. Similar letters had also been sent to the newssapers, but they had not been pubashed. Ho had seen only one. Mr. H. G. Dickie; That is not fair. I have seen several such letters in the Taranaki newspapers. Mr. Nash said he had not noticed the letters to which Mr. Dickie referred and proceeded to explain the mcthods by which the Government had assessed tho guaranteed prices. Last year the disparity in price for butlerfat for cheese as against that for butter had been due to a legitimate mistake, but ho assured them that the Governmeut would live up to its promise properlyAo recompense tho farmer for the disparity in nrice for cheese.

Price Assessment Explained, Uutlmlng tne metnuus by which the Government had assessed the present guaranteed prices, Mr. Nash stated that the Government had taken the averago farms producing from 100 to 175 pounds of butterfat te the acre. After assessing over 14,000 dairy iarm3 the Government concluded that the working and maintenance costs on farms workeJ out at 5.07 pence per lb. butterfat and interest, ctc., at 3.06 pence per lb. The Government had also added to those costs 1.54 pence per lb. for pigs and had added 2d per lb. ior cheese. The resultant pricc, after deducting these costs, Mr. Nash said, gave the dairy farmer an income commensurate with the work he w as doing. Mr. Nash said that New Zealand 's marketing proccdure overseas had been a rcnsaikalile success and the Govern* nientffelt it ha;l the support of 90 per ceut. of ihe dairy farmcrs for its guaranteed price scheme. No-one in tho liouse, he said, would be prepared to go to a dairying district and urge the abolition of the guaranteed price. The Government was hoping to be able to so continue, not only this year, but nexi year and for maay years to eome that the farmer, his wife and .children would I.be assured of & seeura me-ans bf livelikaasb