“MATTER FOR EXPERTS”

Wairarapa Times-Age, 17 May 1938, Page 7

“MATTER FOR EXPERTS”

VIEWS ON COMPENSATORY PRICES. FARMERS’ UNION DISCUSSION. “This is a matter for experts and I do not think we can arrive at any conclusion. in the time at our disposal,” remarked Mr Hugh Morrison, Provincial President of the Farmers’ Union, when referring at yesterday’s meeting to a remit, submitted by Mr W. J. Thomas, dealing with aspects of the compensatory price. Mr Thomas’s motion read; “That until the purchasing power of the New Zealand pound is equal to the purchasing power of the pound sterling in their respective countries, the handicap at present imposed on the primary producer can be best adjusted by means of exchange, which shall be sufficient to adjust the disparity in the cost of New Zealand goods and services, compared with the United Kingdom. The compensatory adjustment to be made simultaneously in the duties imposed on imports; provision also being made for no increase in exchange on monies transferred in the United Kingdom for Government and local body debt services.”

Mr Thomas said it was necessary that the Farmers’ Union should give a lead as to how the compensator}’ price scheme could be put into operation. He suggested that there were four proposals. Firstly, by reducing costs, including tariffs; secondly, a subsidy by taxation; thirdly, the difference between the pound in New Zealand and the pound sterling to be made good by the issue of new money from the Reserve Bank, not to be regarded as a debt; fourthly, by an increase in exchange with a compensating reduction in tariffs to prevent any increase in cash oi - goods exchange of Government or local body debt charges. After a brief discussion, part of which was taken in committee, the motion was adopted as a remit to be forwarded to the inter-Provincial conference in Wellington.