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Hokitika Guardian, 30 July 1926, Page 2

The question of dairy control is to be fought out in the House, after all. The Government has introduced a measure which gives an opening for the onslaught and as the Prime Minister stated it was not to he a party matter, members are free to vote as they choose. A prominent Government member (Mr Nash) has signified bis intention of contesting the provisions of the Bill both ill relation to voting for the Control Board and in regard to the actual question of control. There is sure to he a sharp conflict over the measure, and it is fortunate for the government that the Bill is not being treated on party lines, or there would to?- some defections from the Government standard. The trend of feeling of members show that after all, party government has its limitations. The introduction of control is founded on tlie -desire to so control export and marketing as to secure better prices for New Zealand dairy products. We believe such to he a vain hope. Any stabilisation can be but temporary, very brief indeed, for with a market such as the Old Country, the question of supply and demand really governs the position. Great Britain may draw from various markets, and with, the consumer of dairy products, price is a deciding factor. Afore so is this the case now because of the effect of the coal strike. Labor and employment generally are so dislocated, that with less money in circulation many potential Consumers of daily products are going without or seeking cheaper commodities in place of butter and cheese. The consumption must bo falling at, Home just now, and the supply being maintained from continental and oversea markets, prices are more likely to fa]] than rise. Besides with the £

sterling being back at tbo pre-war level by reason of tbo gold standard, price levels must so back in sympathy. Business after all can be done only on economic lines, and control by compulsion is doomed to failure if it seeks fo keep prices above a legitimate level. So far as tbo dairy farmer is concerned be will have proved l>v experience ere this that profit in producing lies in what be can get out of bis holding at a reasonable cost of production. The price of his commodity cannot bo made to suit his particular case, but be has to so order bis production that to secure a profit lie must produce at less cost as prices fall. The control must be by the farmer when it is a case of going out on the world’s markets. In that broad sphere competition is necessarily keen and it will require to be met, eventually, bv accepting lower prices, but reducing the cost of production. This is the economic lesson of the times.