FARMERS WANT INCREASED PAYMENTS

Chronicle (Levin), 1 August 1946, Page 7

FARMERS WANT INCREASED PAYMENTS

- Press Association

• MOYE AT EARLY DATE

By Telegraph-

WELLINGTON, July 31. Dairy and meai producers wiil inove at tne "earnest opportumty for an increase in tlie iStcite payout for tlioir produce. This action wili follow closely upon tiie announcemeut of Britain s agreeiuent to pay iugher prices for New Aeaiiuid butter, eheese, and meat for ihe seasou 194G-47. 'J'he apjjlication for iucreased allowance to tne farniers will come before che Economic iStabiiisation Lommissiou, out it may be the end of Beptember oefure a decision is reached. An assurance tliat tlie meat industry's case for extra i>ayment to oilset iucreased costs vvould be placed before tlie Htabilisation Coinmission at the earliest opportunitv was giveu yesterdav by the chairnum of tlie New Zealand Aleat Producers' Board (Alr. O. H. Grigg). j Dairy industry leaders said tliat the policy of the industry would be determined by the New Zealand Dairy Board j .it its couference in Heptember. Tliey j leclared tliat dairy-farmers were en- i litled to an iucreased pay-out to meet ligher costs — a pay-out tliat would •ome from funds wliicli the industry .tself had produced. The lirst four years' contract for tlie ;ale of New Zealand butter and eheese :o Ihe British Governiuent was signed .11 1944. Tlie butter price was 150s (iil iterling per cwt., and elieese S9s sterlng per cwt., f.o.b. New Zealand ports. flie f.o.b. purcliase prices paid by Uritain for New Zealaml dairy produce icfoi'e tliat agreement were ,117s sterling [>er cwt. for butter and 73s sterling per cwt. for eheese. I ii tlie 1944 contract tlie prices .vgreed upon were for the lirst two /ears, ai'ter which, as from September !(), 19415, tlie contract was subjeet to .■evision in the. light of eurrent costs. A similar agreement was made for meat. Iu the case of pig meats, Britain purcliased onlv up to Heptomber 30, I91ti, but discussions late in 1945 led to an agreement tliat the British Min- | i.stry of Food would purcliase all avail.ible supplies of pig meats for tlie tliird year of tlie contract up to Hepteniber 80, 1947. 'J'lie (piestion of the price of J pig meats was lield over to be lixod j luriug the recent discussions. The prices for meat, which were firin for tlie lirst two years of the contract, j were tlie prices paid under tiie lirst (1989-40) contract, plus 33 1-3 per cent. j Huch increases as were received in the j' intervening jieriod were embodied in i aiul formed jiart of tlie 33 1-8 per cenl. I'nder the terms of tlie 1944 contract / tlie Fnited Kingdom tloverniiient also | agreed as coiiipensatiou to meet the ab- | t'ornuil increase in prices of New Zea- i I iaiul iniports from tlie Fnited Kingdom I f'rom 1989 lo 1944, lo pay a luniu sum j of £12, 000, 000 sterling. In addition tlie Fnited Kingdom Governniont agreed to make New Zealand a lunip suiu paytneut of £4,000,000 sterling a year for tlie period of four years to oover tlie disparit.y in jirices. i Wlien tlie industry brouglit to ques- i tion tlie ownershi)! oi' tiie lunip sum 1 uioueys to be received ihe I'rinte Alin- j ister ( Alr. Fraser) ofl'ered faeilities for i liu; industry to eont'er witli the Goyern- ' ineiil 011 the iuatter. After coiishlera ; lion of all the relevant Mlate (lodir- I inents a joint coniniitlee of tlie M.ent I and Dairy Boards fotnid tliat the lump t sum paymeiits agreed to by Britain | were not lieing nuide'in respeet of pro- ! duee sold to the Fnited Kingdom. From the producers' viewpoint the1 important result of the 1944 agreement was the subsequent general upward re- j vision of prices paid to farmors for j both dairy produce and meat made later ' tliat year. I The niain primarv industries, in vicw | of their iucreasing costs, liave agai'n i lieeu pressing for a similar revision and ) an adjustmeiit is being confidently ex- j pected when new scason's rates and j •wliedules are announced in the near i future.