NOT ACCEPTABLE

Waikato Times, Volume 124, Issue 20739, 24 February 1939, Page 9

NOT ACCEPTABLE

1937=38 PRICE LEVEL

DECISION OF CONFERENCE MINISTER DESIRES NO CHANGE (Times Special Reporter) MORRINSVILLE, Thursday The Minister of Marketing, the Hon. W. Nash, desires the farmers of New Zealand lo accept again this year the same guaranteed price of 14.35 d for butter manufacture and 16.38 d for cheese, according to a statement made by Mr AY. E. Hale, chairman of the Dairy Board, at the dairy conference at Morrinsville to-day. This will he unacceptable to the dairy producers, according to the expression of opinion at Ihe meeting.

“On February 15,” said Mr Hale. “T interviewed tho Minister, when he discussed quite frankly ihe position regarding future guaranteed prices. Aery careful consideration was given to Ihe Minister's viewpoint, hut a conference among the Dairy Board,

the National Dairy Association, the South Island Dairy Association and the New Zealand Farmers’ Union con-

veyed to him its decision that the standards as unanimously recommended by the 1938 Advisory Committee. and accepted by the dairy industry. were the standards that the industry or any organisations associated with it could not agree to vary. The Minister’s suggestion that the price should remain the same as at present for next season was not acceptable.” Should Accept Tribunal's Views

Mr Hale considered the Minister’s suggestion that an expert committee should consider farm costs simply meant a re-opening of an inquiry which was so thoroughly done last year.

“As we understand it.” Mr Hale went on. “the guaranteed price legislation was brought into existence for the benefit of the dairy industry as a whole, wfth the exception of any portion which could be regarded as Inefficient.- Therefore to expect the industry as a whole to produce on a basis of cost reached from a survey of the best type of farms would not make, for the permanency of a plan, nor would it be satisfactory either to the Government or the industry itself.

“For this reason, therefore, we have conveyed to the Government the viewpoint that it should accept the prices and standards recommended by the 1938 Advisory Committee with adjustments as to known increases in costs. If this is acceptable to the Government it will put price fixation on a sound foundation and leave Ihe matter simpiv one for discussion and decision between the industry and the Government. as to what adjustment of prices is necessary due to increases in costs.

Accepted by Industry

“The industry has accepted the standards as recommended by the 1938 committee. \A r e will not depart from them nor do I know of any section of the industry that would wish us to do so. Therefore, in short, we accept and back the findings of the committee, subject to any adjustment of costs and charges as may be ascertained from time to time.”

“AA'hile alterations to the standards recommended by the tribunal were made by the Minister of Marketing, the Hon. AA\ Nash, who reduced to some extent the price recommendations or the committee, the position is that the committee laid down a series

of mst and expenses standards, the accuracy nf which is unquestioned,” said Mr Hale.

The speaker was nf the opinion that it. would he a grave error to change the representation of the dairy indus- | trv on the guaranteed price cominitl tee. namely Professor Torker, Mr I G. P. Agar and Mr AV. Marshall. Change Not Explained “Mr Nash has given us no sound reasons why the recom- ‘ inundations of the committee should not he taken as a basis again this year,” said Mr ?. A. Feri guson. chairman of the South Auck- ! land Dairy Association. “Tf Mr Nash desires the farmers I to accept the same price as last year,” said Mr P. Ilawke. chairman of tho , i Hinuera Dairy Company, “it is con- ' j trarv lo Die expresed intention of the i Government. If it is so. it is obvious ! that Mr Nash does not want to give i t-he farmers the same spending ppwer ! ; as the rest of tho community. ' , “AA'e would like to know,” he added, ' :*“if the guaranteed price is going to he based on the value of our produce i 1 on the English market or upon the costs of production t.o the farmers in i New Zealand. ! “The best indication that the j guaranteed price is at present unsatisfactory is the enormous drop in pro- ! ductiun.” said Mr F. AY. Seifert, ’ chairman of the Morrinsville Dairy ' Company. “If production is going to . be maintained the guaranteed price 5 must be raised.” i The following remit was carried, to . ! be forwarded to the Dominion Dairy i j Conference al Wellington in April:— “That while appreciating that tin 1 guaranteed price as fixed by ihe Goj i vernment this season wos not in ac--3 i cordance with the finding of the sub- >’ ‘ committee which took into eonsidera- ' lion all aspects of factory and farm

costs, this AYard Conference wishes to bring before the notice of the Marketing Department the continually increasing costs, both in the factory and on the farm, and requests that assistance he given to stabilise same, or that, failing such stabilisation or reduction. full recommendation be given to all costs when the price for next season is fixed.”