GUARANTEED PRICE

Taranaki Central Press, Volume IV, Issue 408, 15 April 1937, Page 4

GUARANTEED PRICE

COMMITTEE’S TASK Meeting at Wellington Next .Week. An announcement of the Government’s guaranteed price for the coming season is being awaited with considerable interest not only by those connected with the dairy industry, but also by the people of the Dominion as a whole. On being approached by the “Central Press” this morning, Mr. N. H. Moss, of Stratford, who is a member of the Advisory Committee appointed by the Government in connection with the guaranteed price, stated that the committee’s work was of an entirely confidential nature, and he was tinj able to divulge anything relating to their investigations. However, he mentioned that he was proceeding to Wellington at the week-end to attend a meeting of the guaranteed price committee. He could not indicate th© purpose of the meeting beyond saying that a very important question would be discussed. On his attention being drawn to an address given in Auckland by Mr. A. J. Sinclair, secretary-manager of the Te Awamutu Dairy Company, who is also a member of the committee —the address was given wide publicity— Mr. Moss said he did not agree with Mr. Sinclair’s public utterances on the question while a member of the committee. It will be remembered that in the course of the presentation of the Budget last year, Hon. W. Nash, Minister of Finance, in announcing the guaranteed price fixed for the first year of the Government’s scheme, anI nounced that for th© purpose of assisting the Government to fix the price for future seasons an Advisory Committee had been set up compris-

| ing, in addition to Mr. Moss and Mr [ Sinclair, Messrs. J. Dunlop, represen I tativ© of th© southern ward on the I New Zealand Dairy Board; W. E I Hale, representative of th© New Zea | land Co-operative Dairy Co., Ltd., or ! the Dairy Board; A. Morton, presi I dent of the National Dairy Associa ; tion; B. Roberts, M.P., director of the Parkvale Co-operative Dairy Co. Ltd.; and D. O. Williams, economist of Massey Agricultural College, Palm erston North. Basis of Price. The basis on which the price is tc be fixed by th© Government ii respect of dairy produce exports ii fixed by the Primary Products Mar k eting Act, which provides: i (4) In fixing prices under this sec tion in respect of dairy-produce ex ported after July 31, 1937. regan shall be had to the prices fixed undei this section in respect of dairy-pro duce exported before that date, anc to the following additional consider ations: (a) The necessity in the public in terest of maintaining the stabil ity and efficiency of the dairj industry. j (b) The costs involved in the effi cient production! of dairywproduce. j (c) The general standard of living of persons engaged in the dairy industry in comparison with the general standard of living throughout New Zealand. i (d) The estimated cost to the Department of marketing the dairy-produce concerned, and also the cost of the general administration of this Act. I (e) Any other matters deemed to be relevant. ! (5) Due regard having been paid I to the several matters mentioned in j sub-section 4 hereof, the prices fixed i in respect of any dairy-produce ex- ! ported after July 31, 1937, shall be such that any efficient producer enI gaged in the dairy industry under j usual conditions and in normal cir- : cumstances should be assured of a sufficient net return from his business to enable him to maintain himself | and his family in a reasonable state 1 of comfort. The committee appointed are to sit

in conjunction with the Executive Commission of Agriculture, which comprises Sir Francis Fraser, and Messrs. A. D. Duncan and D. Jones. The personnel of the committee appointed is widely representative and includes members with a knowledge of all aspects of the dairy industry. The first meeting of the committee was held in November prior to the departure of Hon. W. Nash for England. and since that date they have carried out a considerable amount of preliminary work in connection with the collection and analysis of statistics for the guidance of the committee as a whole in their deliberations. Margin for Cheese. With the guaranteed price in operation for the greater portion of the dairy season, its practical operation is now capable of being observed, and certain features have presented themselves for consideration. One feature • exercising the minds of the cheese manufacturing factories is th© margin fixed at present between the pay-out for butter and cheese. It is claimed by the cheese-making factories that the margin under the existing price is not great enough to compensate for the additional manufacturing costs in the cheese industry, and they are asking that in the price to be | fixed for th© coming season a greater margin be allowed for cheese. This matter figured prominently at the recent Dominion Dairy Conference at Wellington, when a resolution was passed recommending that the margin should be raised to enable at least a premium of IJd on butter-fat used for cheese manufacture as against that used for butter. Some of the Taranaki factories are urging that a margin of at least 2d. should be paid, and in cheese-making circles the urgency for an early pronouncement is being stressed. The task conferred on the committee is one of considerable magnitude, in view of the fact that conditions in various parts of New Zealand vary ao greatly, and that from a financial point of view a fluctuation of Id per lb. butter-fat involves £1,500,000.