REMOVING FARM PRODUCE FROM POLITICAL CONTROL

Chronicle (Levin), 23 May 1946, Page 6

REMOVING FARM PRODUCE FROM POLITICAL CONTROL

-Press Association.

Dairy Industry's New Marketing Plan

By Telegraph-

. ItJCKLAND,. May 22Details of the new plan 'of overseas marketing whieh has been drawn up by the dairy industry, were given .by j\ir. A. J. Sinclair, secretary-manager of the Te Awamutu Dairy Oompany Ltd., in addressing the senior and juiiior Chambers of Commerce iii Auckland. The industry had nevef been satisfied, lie said, with the present arrangement whereby the Government compulsorily took possession of the farmers' produce and dictated. ,the pfiee to be paid. The new sclieme was put forward as an altefnative to the guaranteecl price. * - "In formulating its new plan the industry has set down as a fundamental principle, that the- marketing of its produce should be removed entirely from political control and vested oiice more in the New Zealand Dairy Board reconstituted. to cope with increased responsibilities, " said Mr. Sinclair. . .

4 'The determination of the price to be paid to tlie dairy farmer should be tio longer under the sole control of any political party in office but should be decided by an independent tribunal cousisting of th-ree Government representatives, tliree from the industry and a Supreme Court Judge as chairman. This tribunal would cousider movenieuts in the labour reward of those rendering equal service and would set out tlifi cost striicture coveriiig the farmers5 worlclngs and . ihaintenance costs, ro tuni on capital .iu vested, and labour reward, wliieh would form the basis for iixing a guaranteed minimum price. "Whilo New Zealand continues to operate uuder conditions other tirau free exchange, free marketing and free imports, the industry iri self proteclion must liave a guaranteed price adequatoly relatcd to costs. As this price inust Ire guaranteed by the >State, the industry roadily concedes llrat additionaL Goverumeut represeutattpn would be necessary on Ihe Dairy Board, but it' insists that the board liave a majority of producer members under the chairmauship of a producer meniber. "The plan provides for a minimum price helow whicli the farmer must not be paid irrespective of realisations, and a maxinium wliieh must not he exceeded should. the market take an upward trend. It is suggested that the formula unaniiuously recommended hy the 193b' Price Investigation Committee should be the basis and that the minirhum price should be ld. a pound of buttcrfat less tlian the figure set in that report, plps increases granted to "iifdustry since. This. would result in a minimum price sliglitly less than what the , farmer receives today." - _ ' ' The industry proposes that thc maximum price should not he more than 2d. a pound above the minimum. Ali realisations up to that-iigure should be paid into the, Dairy Industry Equalisation Account and distributed ~ to suppliers through dairy companies at the end of the season. Any balance over the maximum price would be withheki and credited to the State Ecjualisation Account, to he available as an olfset to

debits incurred' hy ' the State in maintaining the minimum price. "Wliile tlie United Ivuigdom Govern ment contjinues the present system oi bulk purchase, uegotiations may be required betweeu the two Governments, but tlie industry slloukl be given a partiiersliip in the uegotiations. "In the event of the British Goveru ment abandoning its sclieme of bulls purcliase aud dairy produce marketing revertiug to its former chaunels, the industry has a plan for establislung marketing as'sociations throughout the Doniiiiion, vested with statutory powers. " YVe do not anticipate prices during the war will continue for any loug period," added Mr. Sinclair. 1 ' Stabilit) in thc industry can be achieved only by increase'd production. Tlie resilien'i spirit of Ihe farmer i's as slrong toda\ as it was i li Ihe dcprcssion and the lab pur shortage proniises lo be less ucuto, but the couzitry must solve for liim two vital problems over wliieh lie has'uo coiit-rol. Givo nic fertUiser, Ihe farmer is sayiug, and I shall send food to tlie starving millions in Europe iu inercasiug quanLitics that will uiake L'nc coupu'n-saving scheme look foolisli. "The second problem is that laboui is heing attracted from farms by lugh wages and 40 hours a weck. Fcw meh wlio own farmS take seiious exception to working 50 or "OO lioitrs a wcek it they liave taiigible evidence that tliey are steadily.improving their position. in life, but if they cannot get a price . that will enable. therii to pay reasonably competitivc wages to farm employees, tliey are prepared to concedc'.the point macle by Mr. Fraser when he spoke a little disparagingly of the prospects for'youth in the primary industrics. ' ' '.Wlieii tlie Arbitration Court. receiitl'y curtaUed hours. f'roiu 41 to -1 6' with no reductiou iu ' wages, tlie farnier regarded this*Sj.s, eyui valent' to au increase pf 10 p.er CCilt. ' He is asking wliy hls. Jabour rowakl 'faclor, whicli staiids in the guaraAtb'pd price formula at 11.44U. a lb., should ~mot be similariy increased, beeause farm wages arfe antomaticall'y in'creased l>y .Is weckly for eveiy increhse of Id. adb.'in tlie guaranteed price.'"