Dairy Guarantee to Stand

Hawke's Bay Herald-Tribune, Issue 202, 11 September 1937, Page 6

Dairy Guarantee to Stand

-Press Association.)

IS IT ADEQUATE? Farmers Say .It .Does .Not Cover Rise In Costs MINISTER & DEPUTATION

(By Telegrapb-

WELLINGTON, Last Night. Qaims that the guaranteed prices of dairy experts during the current season were totally inadequate were mad© hy a deputation representing the New Zealand Farmers' Union and Southland dairy iarraers which waited to-day on the Minister of Marketing the Hon. W. Nash. The following resolution passed at a meeting of the Dominion executive of the Farmers' .Union was plaeed before Mr Nash: "Ths$ the price for dairy produce as recently announetotally inadequate and in no way fulfils the promises made by the Governed by the Minister of Marketing is ment to the dairy S?armer." It was stated that the union had ca/cfully considered the whole position and eontended that: (a) The price announced would not ailow the dairy farmer to pay competitive xates for wages which alone coujd «nsure sufficient labour on dairy farms, and farmers' wives and children would be forced into the milkiugehed as never before. ■(b) The price announced would not jdlow the dairy farmer reasonable interest on the capital invested in his farm and stock. Further, farmers would not b6 able to find anything to teduce table mortgages, much less pay-off anything on flat mortgages. Does Not Meet jncreased Costs (c) The price announced would not enable the dairy farmer to meet the increased mosts that would inevitably be piled on industry in the coming season — in addition to increases in dairy factory wages and farm employees' wages, there would be an increase in all items concerning cost of living and production. County Tates generally would increase, in some cases very considerebly. In on disrrict there was on inerease equal to one-third of a penny per lb butterfat. (d) The price announced would not appear to give the dairy farmer payment at even the standard rate of unskilled workers. It was pointed out that the farmer was a slrilled worker, had capital invested in his farm "and must have managerial ability. He worked much longer hours than workers enjoying award rates, yet his remuneration was to be lower than the standard •et for unskilled workers. To talk about "a reasonable standard of living" for the dairy farmer or go so far as to refer to his "standard of comfort" was to the men and women engaged in ihe "dairy "industry "nothing but cruel mockery. In replying, the Minister made it clear that no change would be made during the current season in the guaranteed prices of dairy exports announced in August. The Government was attempting to find a procedure by which the man who Iived in the country would receive as reasonable a retum for his labour as the man who lived in the town, Under the guaranteed-pricc aystem the ideal was certainly being approached. Mr Nash quoted average pay-outs and daixy-factory costs for tarious parts of the Dominion. The Cheese Margin. "The preferential margin for clieese on a 10-years average was .Stid lb butterfat," Mr Nash continued, "but the Government endeavoured to pay lid. We allowed 2^d as dairy factory costs for butter, but in niany cases the costs worked out at below 2d. The fact o' the matter is that the allowauee lor butter was too higli, but we sliaJl do everything passible to redeem our proliiise to the cheese producer regarding a preierentia] margin of l)d. "Fixing the price of cheese Jast year we made an allowauee of 1.75d lb butterfat for manufacturing costs. The average for the Dominion worked out at 3.25d., and this is the figure which we are allowing as factory costs for cheese this year. For tiie inanulaetiire of clieese. we decided this season In pay 2d lb butterfat more than is to be paid for butter after a good deal of discussion." The Hon. F Waite, M.L.C., who introdueed the deputation, read a statpnient prepared by the Farmers' Uniou and said it might be possible to arrange a further discussion after the .Minister had made avaiJable tlie fuJl ligures on wlueli the Government had baser] its decision regarding the new season \s price.