NEW ZEALAND BUTTER

Wairarapa Times-Age, 27 October 1939, Page 3

NEW ZEALAND BUTTER

THE BRITISH OFFER BELOW GUARANTEED PRICE. NEGOTIATIONS OUTLINED BY MINISTER. (By Telegraph—Press association.) WELLINGTON, This Day. An indication that New Zealand had not received a single offer from the United Kingdom Government equal to the price the New Zealand Government was now paying to the dairyfarmer for his butter and cheese was given by the Minister of Finance and Marketing, Mr Nash, in a national radio broadcast from his office in Parliament Buildings, Wellington, last evening. The Minister outlined the stages in the negotiations with the dairy industry over the fixing of the guaranteed price for the current season, and said that the Government was urging the United Kingdom Government to increase its offer for the purchase of the Dominion’s dairy produce. Mr Nash devoted some time to refuting rumours which he said were current. A dairy newspaper, he said, had mentioned that the British Government had fixed a maximum price of 145 s for butter. That, however, was nothing to do with the New Zealand Government, which was not getting 1455. That was the price fixed by the British Government for all butter imported into the United Kingdom, and it was a price which had been fixed when the market was short.

The price the Government was paying the farmer today was 130 s sterling for butter and 77s 6d sterling for cheese. The deficit in the account for butter was £1,349,000, and for cheese £1,182,000. Against that there was a surplus from the previous season of more than £500,000. It had been suggested, said Mr Nash, that the Government had been making millions from the dairy-farmer. Actually, the Government had given more to the dairy farmer than it had received. The Government thought that was due to the dairy-farmer. Outlining the negotiations with the industry, Mr Nash said he had discussed the guaranteed price with the chairman of the Dairy Board, Mr Hale, on February 15. Following that he had advised Mr Hale that his feeling was that it would be best to continue the past season’s price. His views had been communicated to a conference of the Farmers’ Union, the National Dairy Association, the South Island Dairy Association, and the Dairy Board. The conference suggested that the Government should accept the standard recommended by last year’s committee. To a committee which had waited on him on March 16, Mr Nash said, he had pointed out that it was essential to avoid a spiral of rising costs and prices, and that he would approach the trades unions also. A fortnight later a full discussion on costs and prices had taken place with the representatives of the industry, and the steps taken by the Minister of Labour to discuss with industrial organisations the stabilisation of costs had been outlined. y Subsequently, the Dairy Board conference had decided that it was unable to agree with his suggestion that the price should remain the same.

Mi- Nash said he returned from England on September 1 and six days later the board conveyed to him a resolution offering the Government full co-opera-tion in the present crisis. The Dairy Industry Council that day reiterated the offer of full co-operation. It was recognised that the old outlook had to Change and the industry was prepared, to accept the adjustments necessary. 1 The Minister said he had indicated the nature of the arrangements likely to be made with the United Kingdom Government and said that any suggestions the industry desired to make to avoid possible difficulties would be gladly received. The following day he again met members of the Dairy Industry Council, and it was agreed that the main objective was to maintain production. He had said that on the basis of the discussions with the British Government he did not think it would be possible to pay more than last season’s guaranteed price.