STATE MARKETING PLAN EVOKES MUCH CRITICISM

Hawke's Bay Herald-Tribune, Volume 81, Issue 60, 3 December 1937, Page 3

STATE MARKETING PLAN EVOKES MUCH CRITICISM

-PreBP Assorialion I

NEW LEGISLATION

"Regulate Production as far as Possible" GpVERNMENT'S OBJECT

(By iVlp^rnnli-

WELLINGTON, Last Night. It was proposed to regulate as far as was humanly possible the national production to ensure that the primary producers should' get the maximum share of the national income after taking into account the distribution and other costs in between producer and consumer, said the Hon. Walter Nash, Minister of Finance and Marketing, in niovin^ the second reading of the Primary Products Marketing Amendment 13ill in the House of Representatives to-night. The Bill confers on the Primary Products Marketing Department power to ,fix wholesale or retail prices of dairy products and acquire at fixed prices fruit, honey and eggs and any other foodstuffe that may be declared by Order-in-Council. The Bill, Mr. Nvsh added, provided fior 'the tmore orderly marketing of primary products, .and its purpose was to give the maximum to the producer, who had never been able to get it before. It was proposed to eliminate the speeulation that had always taken place between the consumer and producer to the debriment of both. The Minister quoted from a statement of comparative prices to show that, if they had followed the procedure to allow the producer to receive the sum that his produce realised during the past year, it would have shown a variation of from 86/6 to 151/9. Tlie Government ' was affirming that they must have orderly marketing and that the producer must not be deprived of the time his produce took to get to the market ; also, there would be some procedure that would ensure as far as possible the equalising of his returns. | The Government wanted to ensure an|. isdequate supply of produce, said Mr.jj [Kasb, and took into account in the fix-! j jing of prices what it did cost to ensure' I j jtlie coiumodities that were necessary to: j ■ 'ihe average home. The Government I ! jhad been criticised that it had been j j 'possible to sell commodities at a lower j ! jpriee tlian that realised overseas. If | ; tthev accepted that argument they would j ; ,have to go back to last year when the J ptice on the local market was greater j ; ithan that overseas. The policy of the i ■ Gov.ernment was to give the farmer an i 1 even price all through. If it found the j i price realised was greater than that j | paid the profit would be left in the | • Dairy Industry Account. The aim was | | to ensure an adequate return for the i ; producer and a- minimum price ""for, the j consumer. j Tho Bill would make provision for | taking produce from the dairy factory j to the wholesaler, to retailer and the I consumer, and as far as necessary prices | at the various stages wquld be fixed. •' .The price to the factory was fixed, that | to the wholesaler would be fixed to allow him a halfpenny margiru The retailer '3 price was not yet fixed but power was being taken to do so. That would remove the evils of the old economic order, nameiy cutting and monopoly. The Minister quoted Mr. ! Neville Chamberlain as saying that if j tho old economic rules were to work j themselves out the producer would be j crus.hed to pieces and that they musl j look to some means of regulating sup- ! plies. ! "Absolute and Complete.4' Mr. Nash stated that the case for t internal marketing was absolute and j complete. Explaining the elauses of the Bill he said it provided for the setting up of two divisions of the Marketing Department, nameiy tho dairy export section and- the internal marketing seetion. It was not proposed in any way to interfere with the marketing of meat whieh was being conducted in a very efficient manner. In answer to an Opposition question Mr. Nash said the salary of Mr. Picot, director of the Internal Marketing Department, would be £2000 a year and that of Mr. Duncan, director of the Dairy Export Department, £1500. Dealing with the powers taken undei the Bill the Minister said provision was made for the payment of interest on the overdTaft in the Dairy Account and power would also be given to withliold from export any foodstuffs required in the Dominion. He proceeded to criticise the statement published by Hon. John Cobbe this morning stating that the deficit on the sale of dairy produce would he only £40,000. The estimate was absurd, he said, and was oniy half a million pounds out. t With reference to the Beserve Banlc, said Mr. Nash, there had been some suggestion that the bank had no powei to give unsecured loans. The bank was providing the overdrafts on tho Dairy Marketing Account and security for this was the whole resources of the Dominion. In conclusion, ho said: | "The wiggling of tho market shall not have the effect of reducing the price to the producer." ' Opposition 's Ohjections. Tho lcader or the Opposition (Hon. A. Hamilton) said the Minister in the couise of his spoech iiad quoted Mr. Neville Chamberlain but he would like to see Mr. Chamberlain introducing a Bill of this nature. The Opposition was opposed to the powers taken in the Bill. They were disturbing. One of the Bill's obieetives, tho Minister had stated, had been to protect the farmer. The greatest difficulty which the farmer had to face was rising costs and tho j Government had done nothing to ro-, I ..tkuce thesg, Ha wara,ed t&a Minister of

the *. conditions in fhoy would induee people away from the production of foodstuffs. Mr. Hamilton continued that the Bill showed the Government in its trua colours. It was assuming .dictatorial powers. That was the drastic natura of the important provisions in the Bill, It was obvious that the Government did not fully appreciate .the eeonomio 3ystem obtaining in New Zealand. To alter this system gradually miglit be quite all right, but the sweeping plans of the Government were heading foi revolution. It was setting out to eliminate the distributor. The Government, it was stated, was trying to bring the consumer and producer closer together, but if it could do that and pay standard Tates of pay in the process then it would not be successful in achieving its objective at any eheaper. 'cost than that ruling to-day. The! 'Government had boasted about the, wonderful savings it had made, but it; was the taxpayer who met the bill inj 'the long run. The taxpayer was meot-' 'ing a bill of £10,000,000 more than that,' which he had to face under the old Government. The present Administration had made a great song about the. value of the locai market, but that market was never of less value than it had been since the Labour Government took charge. The farmer had been looking i'or assistance from the Government, but it cost him about £5,000,000. for the services that had been given him. Extraordinary powers had been taken in the Bill, said Mr. Hamilton, Power; was taken to fix the wholesale and; retail prices of any foodstuffs either as maximum prices or percentages, and; that would have a mighty effect on the traders of the country. What abouti the fruitgrowers and grocers? The' Government was ' f aking powers to fixtheir prices. The Government had: taken powers and there was nothing toj stop them from . being . put into eff ect.J The ranks of the public ' se'rvice hadj already been increased, but a few hun-l dred more would be needed as inspec-| tors. The Minister ■.had -got power foj commande^: any food stuffs at any fimej and at any price and the commandeerj would be done by Order-in-Council. j The producers should have a say in thej mattcr, said Mr. Hamilton. It was not! the function of the Government to] handle trading. Provision was made; for financing the scheme by an over-, draft without limit from the Eeserve Bank. That might be pleasant for those who believed in social credit, but the Bcserve Bank was not for that. What chance would the private trader have against that? Power was also taken to vary the guaranteed price at any time, up or down. It could be put down at any time. What a pup the farmers had been soldl After all the argument about stability the Minister was taking power to alter the price at any time. What a change of frontl He hoped the farmers were listening. They would realise that they were being taken for a walk. The Minister, he continued) was given power to equalise two accounts. He would say it was not power to equalise, but fo juggle. If the price of one commodity were high and the other low the Minister could take something from the high price and make up the lower one. There was a revolutionary change here, said Mr. Hamilton. The economic laws were being amended. He admitted that .the present economic system was perhaps not 100 per cent. efficient, but it was dangerous to discard some of our well-tried systems. There would be nothing coine out of this Bill but increased costs to farmers and increased cost of living to other people.' The Bill should not be hurried through, but evidence should be heard from the indus'tries concerned. The people affected had a right to be heard. Government's Assistance to Dairy Industry. Mr. J. G. Barclay emphasised the importance of the Government's assistance to the dairy industry — an industry which was worth £23,000,000 to the country. Mr. Hamilton had said that the farmers did not get goodwijl, but he did get his goodwill and sold his farrn at the market price. The goodwill paid for the Beserve Bank sharcs was the same as that paid for Picot Brothers. The Government intended to fix the terms and conditions of sale and arrange prices, taking as a basis f.o.b. payments, to issue licenses to factories and distributors, tO. collect the proceeds and profits fop the factories and distribute the profits to butter manufacturing companies on output, and generally to regulate the disposal of buter for consumption in New Zealand.

Sir Alfred Bansom said that the cuiry industry was quite capable of mwiaging its own affairs without Government assistance. It had done so in the past and could do so in the future. He referred to the drop in the price of wool and contended that the same might easily be expected in the case of dairy produce. A Bill of this nature, he said, should not be rushed through at the end of the session, but the people affeffcted by it should be given an opportunity of being heard. The Bill was a drastic interference with the liberty of the subject and he was sure the people of the Dominion would resent it. However, it was quite consistent with the policy of the present Socialistic Government. They might expect that besies prices being fixed supplies of food and clothing might also be rationed so that oue miglit expect to be told not only tho prices whieh one might pay but how inuch food and drink and clothing one ti could have. Mr. C. M. Williams said the present Bill did not confer any new powers on the Government. It merely provided the machinery by which some of the powers which the Government already possessed could be put into effect. feir Alfred Bansom had said that the people of New Zealand would rescnt interi'ereuee with their iiberties which the ' Bill would effect, but ile would point out &ut tk« Boftrd cf Trads AcJ

in 1919, giving power to control industry, also interefered with the iiberties of the people. He thought the Bill made it quite clear that there would be no, repudiaion of the guaranteed price. There would bo variation in prices in eggs only. The statement by tho leader of the Opposition that the guamnteed price may be reduced was merely an attempt by that gentleman to seare the farmers and to mislead them. • . . The debate was adjourned at 10.25, wliea tho Hougu ios&