HEAVY COSTS

Otago Daily Times, Issue 26628, 26 November 1947, Page 4

HEAVY COSTS

INCREASE OF 3/5 A CASE

STATEMENT BY FEDERATION P.A. WELLINGTON, Nov. 25. “ No satisfactory arrangement for the marketing of the 1948 apple and pear crop has been reached between the Government and the New Zealand Fruitgrowers’ Federation,” said a statement issued to-day. “For the past four seasons the industry has been operating under an agreement with the Government. This agreement was cancelled without any reference to the industry when subsidies under stabilisation were abolished last August. “ Under the agreement, the retail prices to consumers were held, and in addition growers’ costs were stabilised,” the statement continued. “Last year consumers purchased apples at approximately half their market value, in return for which the Government paid subsidies approximately £250,000. For the coming season, the growers are called upon to meet these additional costs which include such items as cases, the price of which has advanced by 9d eath, and the recent orchard workers’ wage increase equally s£d a box. These and other increases, such as transport and fertilisers, mean that growers’ costs have advanced by nearly 2s a case. In addition to these direct costs, the subsidy on fruit' itself of approximately Is 5d a case, has been withdrawn.

“ Fruitgrowers throughout New Zealand naturally want to know how this total, amounting to 3s 5d a case, is to be recovered in order to maintain their 1947 standard. “ The federation has made every endeavour to co-operate,” the statement added. “ but it feels that it has been badly let down as the Government itself has shown little interest in the matter which so vitally affects this section of primary industry.