SEASONAL PRICES

Waikato Times, Volume 124, Issue 20743, 1 March 1939, Page 12

SEASONAL PRICES

BUTTER AND CHEESE DISCUSSIONS SHORTLY MINISTER AND INDUSTRY (By Telegraph.—Press Association) WELLINGTON, Tuesday Discussions are to take place at an early date between the Minister of Marketing, the Hon. W. Nash, and representatives of the dairy industry about guaranteed prices for dairy produce for next season. This was announced to-day by the M.nister when invited to comment on the resolution passed by the conference of No. 1 Ward of the Dairy Hoard regarding the fixing of the current season’s prices and increased costs. “The chairman of the New Zealand Dairy Board, Mr W. E. Hale, has informed me that a committee consisting of representatives of the New Zealand Dairy Board, the Farmers’ Union, the National Dairy Association and the South Island Dairy Association has been set up to discuss the question of next season's guaranteed prices for butter and cheese,” said Mr Nash. “I have stated my willingness to meet the committee and discussions will take place at an early date. Standard of Living “The position in regard to the fixation of prices for dairy produce is that after asking for a judicial tribunal to decide the prices the dairy industry finally declined to accept that method of price fixation and asked that the Government should itself take the responsibility for fixing the prices to be paid. The Government, while readily accepting this responsibility, nevertheless is prepared to discuss the matter with the industry representatives. “In announcing ‘he fixation of the present guaranteed prices I reminded dairy farmers and the industry representatives that full weight had to be given to the standard of li v ing factor which is referred to in the Primary Products Marketing Act,” continued Mr Nash. “It is in these words: ’The general standard of living ol peisons engaged in the dairy industry in comparison with the general standard of living throughout New Zealand. If this factor is not given its correct weight disparity will arise and an unfair situation will be created. After lhe discussion with the industry representatives suggested by the chairman of the New Zealand Dairy Hoard the Government will determine lhe procedure for the coming season." CONTRADICTION OF ACT MR NASH’S STATEMENT REPLY BY MR RUSHWORTH “ The Minister’s statement is a definite contra die Don of the Art-, whPVi provides that as farmers’ costs rise sb should the prices rise,” said Mr li. M. Rushworth, Auckland provincial president of the Farmers’ Union, to-day, when replying to the statement of the Minister of Marketing, the Hon. W. Nash, presented at a meeting of the No. i Dairy Ward at Morrinsville last week. “ The factors which have to be taken into consideration in arriving at the price provide for an automatic increase in the price as the costs of production rise,” said the speaker, “ and the Minister’s statement as reported in the newspapers seems to suggest that some other factors should be substituted for those in the Act. It seems quite clear that the general principles applicable to other industries, namely, that if the industries are to be preserved they must be able to recover their financial costs in full, should also be applied to the dairy industry. “No reasonable person could possibly object to such a principle for the dairy industry, and it is difficult to believe that the Minister seriously suggests that a price which is somethin* less than the total cost of producing the article should be paid for dairy produce,”’ continued Mr Rushworth. ’* It is worth noting that the total cost includes a standard of living which is so low as to be unattractive to the rising generation of New Zealanders, who appear to be generally loath to embark on the dairyingindustry as_a career.”