THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, AUGUST 2, 1943. PAYMENT FOR PRODUCE

Hauraki Plains Gazette, Volume 52, Issue 3295, 2 August 1943, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, AUGUST 2, 1943. PAYMENT FOR PRODUCE

Long argument has at last convinced the Government that its stabilisation scheme in its operation was unjust to the dairy farmers of New Zealand. The consequence is that an additional payment of .767 pence a pound of butterfat is, to be made to meet increased costs of production generally and of .187 pence to butter companies and .055 pence to cheese companies to compensate for increased factory costs and increased costs of requisites. This payment involves an increase in the wages of agricultural workers to 2s 6d a week.

The stabilisation policy has been upset to this extent because the Government refused in the past to recognise the justice of the farmers’ claims. Negotiations have admittedly been in progress for some time but the injustice began to operate away back in the 1938-39 season when the dairy farmers’ returns alone were stabilised. It will be noted that the increased payment is to be made as far as possible from pooled “surpluses” from the sale of dairy produce, so that the farmer, to the extent that this is possible, will be receiving only the money that is realised by his produce on the overseas market. The Minister states that the funds will be provided out of a special dairy industry stabilisation pool account. If surpluses paid into this fund are insufficient to meet the additional payments it is presumed the balance will remain a debit in the fund for future adjustment. In the meantime there is, of course, the possibility that the extra payment may amount, in part, to a subsidy. The “guaranteed price” is not affected by the payment, nor will the prices of produce on the New Zealand market be changed.