GUARANTEED PRICE

Wairarapa Times-Age, 20 September 1938, Page 6

GUARANTEED PRICE

SATISFACTION IN TARANAKI SOME DOUBTS EXPRESSED POSSIBILITY OF MARKET FALL (By Telegraph—Press Association.) HAWERA, This Day. General satisfaction with the guaranteed price is expressed among the farming community in South Taranaki although there is some disappointment that the Government did not accept the recommendations of the Advisory Committee. The committee was given the basis of an average for the Dominion to work on, but in the case of l a large number of South Taranaki factories the average was higher than the basis, so that the increase in Taranaki would be less than to some other districts. One farmer’s statement that the industry should be well satisfied with a price less than ttje committee’s recommendation, so that a reserve could be established, was a point in condemnation of the Government’s policy, by reason of the fact that it had made no provision for any reserve for future years, stated one company secretary. Another declared that the price was not disappointing so far as Taranaki was concerned.

“The price is reasonable and the wonder seems to be how long the Government can keep going at the price,” he said. “The action of the Government, however, in reducing the price recommended by the committee proves that it has no faith in its own scheme, and that it must take notice of world markets for price fixation. This is despite the fact that internal costs may rise to such a level as would justify a guaranteed price, which would be much higher than any Government could pay.” This company secretary considered that anything over 16d should show a good return to the farmer, provided he was not faced with labour troubles. In another quarter it was considered that the Government’s ability to pay the prices announced was dependent on overseas markets, and if these realisations did not average those of last season it might be assumed that the Government would invoke its powers under the Act, and make, a reduction. This was a point farmers should note carefully, for inasmuch as the increases granted in the past season were pro rata over the whole season, it might be assumed that any decrease would operate pro rata also. The opinion was expressed, therefore, that in preparing their budget for the season, farmers would be well advised to make allowance for such a contingency.