DAIRY FACTORY COSTS

Press, Volume LXXIX, Issue 23964, 3 June 1943, Page 4

DAIRY FACTORY COSTS

—_> STABILISATION FUND TO OPERATE EFFECT OF CHANGES IN AWARD (P.A.) WELLINGTON, June 2. In a statement issued to-day, the Minister in charge of stabilisation (the Hon D. G. Sullivan) sa'id that the promise made by the Prime Minister (the Rt. Hon. P. Fraser) in December last to hold farmers’ costs would operate in respect of the increased costs involved in alterations to the dairy factory employees’ award, announced by the Arbitration Court. Mr Sullivan said he was arranging with the Minister of Marketing (the Hon. J. G. Barclay) for reimbursement to dairy companies from the appropriate stabilisation account, and the Marketing Department would be communicating with dairy companies as early as possible. Mr Sullivan added that negotiations in respect of the dairy factories employees' award had commenced before the passing of the Economic Stabilisation Emergency Regulations, and the application therefore came within the class of transitional cases which could be completed under the law in force before December 15. 1912. Additional costs, however, would not be passed on to producers, as the stabilisation policy specifically provided for holding the costs of manufacturing dairy products.