PAY OF FARMERS

Taranaki Daily News, 30 September 1940, Page 6

PAY OF FARMERS

'should cover costs' dairy industry view in the melting pot

"That this meeting of representatives of the dairy industry in Taranaki is in full accord with the attitude adopted by the Dairy Industry Council in regard to this season's guaranteed price." This resolution was carried unanimously by 80 delegates at a meeting of the Federation of Taranaki Cooperative Dairy Factories at Stratford on Saturday, when Mr. A. Linton, chairman of the New Zealand Dairy Board, said that the leaders of the industry were fighting for the full operation of a clause in the Marketing Act, 1936, which meant in effect that the farmers' payment should cover his costs of production and costs of living. Mr. Linton, who made a detailed review of the position, pointod out that the guaranteed prices for the past 12 months were 15.88d per pound of butter and 17.88d per pound of butterfat for cheese manufacture. As against this Taranaki dairy companies averaged payouts of ls 4d and ls 6d for butter and cheese respectively. This point was being used as an argument against granting farmers a higher price.

Fighting for a Principle. "The New Zealand Dairy Board and the Dairy Industry Council are at this moment fighting for one principle of the Marketing Act. 1936," continued Mr. Linton. That was that the price should meet costs of living and costs of production. In June the leaders of the industry pointed out to the Minister of Marketing that it was the duty of the New Zealand dairy industry to supply cheese and butter to Britain at the lowest possible rates. It was contracted that this would be done if a "stay-put" order for wages and production costs was put through. However, at that- time the Auckland Tramway Union was granted a rise of about 8 per cent. and the county transport workers were granted an increase. In August the 5 per cent. cost of living bonus became payable to all workers under award wages. and later 5s a week rise to a great bulk of public service employees was introduced. These, in effect, threw the whole matter back into the melting pot, said Mr. Linton.

Arbitration Court Luling. The system of granting a price to cover costs had long been a principle of the Arbitration Court. while it had been conceded by an Arbitration Court .Judge that a price to cover the cost of living was not determined solely by the ability of an industry to pay it. Surely, then. if that principle was good for one section of the community it was also good for the farming community, declared Mr. Linton.

Mr. Linton went on to say that an economic conference was sitting at the present time, but he, personally, did not think that any such conference could solve the difficulties of the country, whieh were' a problem for the Government. "We don't want to be jockeyed into anything until the position has been considered by the Government," he declared. "After receiving that consideration we would be prepared to bear the sacrifice that the present conditions must entail. j We are fighting for the principle epunciated in the Marketing Act, and we don't want this great induStry left last in iine for an increase in return." Mr. Linton concluded his remarks by pointing out that the dairy industry conference would probably be held some time in the next two weeks, following the economic conference.