Minister Announces An Increase

Chronicle (Levin), 5 October 1946, Page 5

Minister Announces An Increase

-Press Association

THE 1946-47 SEAS0N

By Telegraph-

WELLINGTON, Oct. 4. An increase of 1.2Sld per lb. of butterfat in the farm cost allowances payable to dairy farmers for the 194647 season, was announced tonight by the Minister of Marketing, Ilon. B. Roberts. The Minister said the Dairy Costs Adjustment Committeej eonrprising representatives of . the dairy industry and Government, had a number of. meetings and had examined .the uiovemeut in costs of production since cost allowances were reviewed at the commencenient of the 1945-46 seasom It f ound, however, that agreemeut could not be reaehed by the committee on the additional cost allowances to be paid for this year by the committee and the question was, therefore, referred to the Government for a deeision. The Minister said the following additional cost§ allowances would be paid . for the season commencing August 1 iast: — Farm working and maintenanee costs, .4d. Depreciation on buildings, plant and equipment, .361d. Increase in labour reward at 5s weekly, .52d. Total: 1.281d. The increase in the labour reward of 5s weekly, arose from the fixing (jy statute of the minimum wage at £5 5? weekly. This minimum applied to the sheepfarming industry, and workers in tlie dairy industry normally reeeive a margin of 5s weekly above the rates far sheep farms. " The Minister said tlie examination of cost movements did not. diselose any need to inerea3e thc existing factory costs allowances. How ever, if costs should be inereased during the current season as the result of wage negotiations now in progress, the Government would be prepared to agree to such further factory cffist allowances as might be necessary to ol'fset the additional costs incnrred. The Government regretted that full agreement on these questions could not be reaehed by the Fair Costs Adjust ment Committee, said tlie Minister. The inereased allowances now decided upon were justified on a careful investigation of dairy farm costs and their payment would ensure that the relative position of the dairy farmer in the comniumty was maintained. The full proceeds of the inereased price received from the United Ivingdom Government by virtue of the recent conIrnct revisions, would be credited to the Dairy Industry Stabilisation Account. The balance in the account, after deliits had been made for the items agreed upon between the Government and the joint committee of industry representatives — coverilig Farm and factory cost allowances and subsidies for such items as 'fertilisers — would be preserved intact for the benefit of the industry ip aecordancc with the letter and spirit of the stabilisation igreement with the Farmers' Federation.