GUARANTEED PRICE.

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 13

GUARANTEED PRICE.

CHAIRMAN’S REVIEW. COMPENSATED PRICE SUPPORTED. IF CONFINED .TO FORMULA. “The first year under the Guaranteed Price Scheme has been completed and several factors tended to make it appear a very satisfactory season," Mr McKenzie said in his address at the annual meeting of suppliers to the New Zealand Co-operative Dairy Company, to-day. "We started off with exceptionally high supplementary payments brought about by the rise in prices over I lie laller portion of the 1935-36 season. This, added to the splendid productive season and the higher advance prices made possible

iby our knowing what the ultimate price would be, has given the farmer more money than he has been accustomed to handle for several seasons past with the exception of the 1935-36 season to which the above-mentioned supplementary payment belongs.

“Farmers who employ labour or place any value on that of themselves, their wives and families, will find on balancing their budgets that they do not come out so well as was the case last season. This would have been accentuated had production not been well in advance of that of the preceding season. \Ye realise, however, that the season just past is to be regarded as an experimental one under the

• t Guaranteed Price Scheme. When pro--3 pounding the scheme to the Dairy 5 Conference prior to Its being brought - into operation, the Minister of Market- - ing gave the assurance that should 1 the year's operations result in a loss such deficit would not be carried forward as a debit to the dairy account. Consulting of Industry. “In response to a question as to s what would happen if at the end uf ” the season it was found as a result of the increased costs brought about * by Government legislation the producer was in a worse position than if 1 I he scheme had not been in operation, the Minister intimated that in such a case the industry would be con--0 suited,” he added. ■''Dater, in the House, the Minister 5 stated that the fa"mors would get " every penny promised. TnU position ■ may arise when ihe final realisation ’ figures come to hand in wnich case 1 farmers will have an admitted claim lo further moneys j. “We still await the belated an- , nouncemcnt of the present season's Guaranteed Price, caused by Ihe ab- ’ sonce of the lion. W. Nash. The data ' on which the price is to he based has ; I already been collated, but is not yet available. Your own Company’s Price Fixing Committee has asked that , prior to a decision being arrived at it , may be heard by the Minister of Marketing. i “‘This request was made following ■ Ihe statement of a dairy company , chairman that one penny per pound rise on last season's price would be satisfactory. The industry awaits with interest the grounds on which he readies the conclusion that tiie average fanner, after paying the ruling rate of wages, allowing himself the same with the added amount he is entitled to as a manager, and without exploiting the labour of his wife and children, can carry on with a penny rise under present conditions. “The contention that some can do so through better conditions, is answered by the fact that in nearly all Instances these have boon brought about by years of hard work and etlleiont management. Is Ihe farmer not entitled It) recognition on this score Instead of capitalising his past efforts to beat down the price In be paid those attempting to fight their way up? We trust those making Ihe decision will recognise this economic truth---that llio wealth of a nation depends on the volume of saleable commodities produced-—that tin* person who makes the best use of the means at his disposal is a benefactor and should he rewarded accordingly,” said Mr McKenzie.

resumed ai une nine, imuoc me | pany in a breach of tho Dairy Industry Act.” “The dairy farmers were not unanimous in desiring a Guaranteed Price, some contending it would be used as a lever to raise wages which cannot be so easily reduced again, as can a guaranteed price. This viewpoint has been borne out so far. Wages were not based on the average of the pre- '■ ceding ten years but on the highest rate during that period. Had it stopped | there no serious complaint would be j made, but the shortening of hours added another ten per cent., not to mention further rises as the result \ of strikes. It is not to be wondered i at that the finds himself worse 3 off at the end of this season than at _ the end of the previous season. P “It Is the raising of costs after the 3 Guaranteed Price has been fixed that 3 has led to the demand for the Com- ; I pensating Price. “When your directors were first j _ asked to take an Interest in the Com- ; 3 pensating Price Campaign the follow- j e ing planks were agreed upon: To ob- ; 3 tain a price for the farmer that will a enable him to pay: ,1) Competitive: 3 rates for wages. c2) Allow him rea- ; 3 sonable interest on the capital in- , vested by him in his farm and stock, j v 3) Enable him lo meet the increased t costs imposed by legislation includ--3 ing tariffs. (4) Allow himself a rej muneratlon commensurate with the services rendered to the community r and with that obtained by other sec- ; tions of the community rendering equal j ’ service. No Extraneous Matter. , “Your directors approve of the. • \ scheme only If confined to the above 3 formula, and disassociate themselves from the introduction of any exlrant eous matter. It Is assumed" that Ihc j Guaranteed Price is fixed after taking B cognisance of all the then existing factors. What we ask is that should costs rise during the currency of the season, the price should also rise automatically. Conversely, should costs fall, which we would prefer, the ;trice should fall correspondingly. This system would obviate the time lag, so far as the farmer is concerned, and keep before the general public the current trend. The four planks of ibe Compensating Price Campaign met with the unanimous support of the lelegales to the last Dairy Board Conference after Ihe matter had been fully discussed. What we ask is so obviously fair that no attempt has I been made to combat it. i “I would like to express my apprej ciation of the cheerful manner in ; which my fellow-directors have re- ' spouded to every call made upon their j lime during the past year which, from j Hie directors point of view, lias probj ably been the most strenuous that has j ever been experienced in Hie history i "f the company,” concluded Mr Mci K'enzie. "Dur suppliers should reaj Jise lluil directorship in their company is anything but a sinecure. The executive officers and slaff have as always carried out their duties in a courteous and capable manner,’’ con- - eluded Mr McKenzie.