BARGAIN DEFENDED

Rotorua Morning Post, Volume 2, Issue 360, 22 October 1932, Page 5

BARGAIN DEFENDED

("Post" Speeial Commissioner)

SOMETHING VALUABLE GUARANTEE OF MINIMUM PRICE QUOTE IMPOSSIBLE AN UNREASONABLE VIEW

Wellington, Friday. Defence of the Ottawa agreement was made by the Rt. Hon. J. G, Coates during the debate in ihe House of Representatives to-day. He said the conference had yielded New Zealand a definite trade agreement under which preferenee was guaranteed on our products for a term of years. This was something new and valuable. "It is true that no minimum price is gdaranteed hy the British Government," said Mr. Coates. "How could that Government be asked or expected to guarantee a piiee for the -future? The British Government are not buying and selling* our products. Would they guarantee to make up the difference at the expense of their taxpajmrs between the aetual price realised and guaranteed figures? The diffieulties in the way of their doing such a thing — the disasters that would fall on them if they did — are evident enough from recent experience. Suppose they had at the previous conference given a guaranteed price for even two years. Prices had collapsed. in the interval. If they had guaranteed " the 1929 prices of dairy 'products, wool, meat,

ete., not to New Zealand alone, hut

to all the exporting Dominions, the whole burden of falling prices would have been borne by the British taxpayer. No government could stand for that. With the possibility of falling prices it would be unreasonable to expect any Government in Britain to guarantee a minimum price for our products. Cuts Both Ways "There is another side. If they were to guarantee us a minimum price we should, obviously, have to undertake to supply at a maximum price upward as well as downward and the movement would never be settled in advance. Would that he acceptable to our produeers? Certainly not at the present price levels. But apart from merits and defects of the guaranteed price scheme, no such idea was within the realm of practieal politics. "British representatives at Ottawa would not discuss anything in the nature of whether or not bulk purchase of staple articles of import or the setting up of State purchase boards is possible in the future. It is to be recalled that the Labour Government in Britain in 1930 were hesitant and douhtful in putting this for ward. That being so the Coalition Government could not be expected to inaugurate such a plan now to take steps toward it, even to the extent of guaranteeing the price.