DAIRY OUTPUT

Wairarapa Times-Age, 1 December 1939, Page 3

DAIRY OUTPUT

PRICE FOR THIS SEASON MINISTER’S REPLY TO QUESTIONS. ' INDIGNATION EXPRESSED BY CONFERENCE. (By Telegraph-Press Association.) WELLINGTON, This Day. Intense disappointment and indignation at the reply by the Minister of Marketing, Mr Nash, to three questions put to him was expression by the Dominion conference of the Dairy Board in Wellington yesterday. The questions related to the alteration of the standards and prices recommended by the 1938 guaranteed prices advisory committee, the covering of extra costs incurred for the current season, and an inquiry as to whether it was still a principle of the scheme that, farmers should receive tr price which would cover cost of production. The conference urged that the Minister give further consideration to an increased price to be paid for this season’s output.

An emphatic protest against any form of subsidy as a means of meeting increased costs, which it, held should as a matter of right be added to the price paid by the Government, was also made by the conference. REPLY TO QUESTIONS. „ Th conference yesterday afternoon received the following written reply from Mr Nash to the questions put to him the previous day:— Question I.—“As the 1938 Advisory Committee unanimously recommended standards and prices to the Minister, this conference respectfully inquires on what data the Minister altered both standards and prices?’’ “The basis of the alteration was set out in the statement made announcing the prices for butter and cheese for the 1938-39 season,’’ Mr Nash replied. “This statement was quoted in full in the annual report of the Marketing Department for the year ended July 31, 1938. “The Government realised that the - report of the committee was entitled f to be given very careful consideration, 3 and this was done. In my statement I ■ announcing the prices for the 1938-39 1 season I drew attention to the fact that ■ the recommendation of the committee ' was a qualified recommendation, be- ' cause in the report reference was ' made to certain relevant factors which ; had not been fully assessed by the i committee, but which, in its opinion, i should be considered by the Govern- ; ment in the determination of the I prices. These factors were duly considered with the whole of the evidence on standards and prices, as given to the 1937-38 and the 1938-39 committees. "In dealing with standards the 193738 committee reported that 62501 b of

butterfat was the production an adult male unit of labour. The 1938-39 committee took 57501 b as its standard. The Government, after careful inquiry and examination of the evidence, considered that a fair standard was 60001 b and the prices was determined accordingly.” PROBLEM OF INCREASED COSTS. Question 2. —“If the price for the 1938-39 season, as fixed by yourself, was reasonable to cover costs of production in your judgment, will you indicate how farmers' increased costs incurred for the 1939-40 season are to be provided for?” “During my address to the conference in April last, and at subsequent conferences. I announced that the Government would, as circumstances 1 warranted, fully examine the effects of major rises in costs," Mr Nash said. “As stated yesterday, the Government has already been considering the costs of fertiliser with a view to covering added costs, and in particular to meet the request of the United Kingdom for maximum production. When this examination is concluded, I will be pleased to convey to you the procedure the Government proposes to follow. "In general, major items of increased cost should be covered in the price, but in the present war conditions it is not possible to pass on all additions to costs. The Government will, however, use every possible endeavour to ensure that the effect of increased prices shall be equally shared by all sections of the community. THE AVERAGE PAY OUT. “It should be noted that for the 193839 season the average payout of butter factories was ,319 d per lb butterfat in

excess of the basic payout. The cheese factory payout was ,18d butterfat in excess of the basic payout. Costs, as you are aware, do depend to a certain extent on output, and during last season exceptional weather conditions caused lower production and consequent higher costs on farms and in factories." Question 3. —“The conference desires to ask if it is still an essential principle of the guaranteed price scheme that the farmers shall receive a price which will cover cost of production?" "With the essential qualification that all forms of our social and economic life may be affected by the war. there is no intention to alter the principle of Section 20 of the Marketing Act," Mr Nash said. "I will bring the remaining subjects raised in the various speeches before the Government for its consideration at the earliest possible moment,” RESOLUTIONS PASSED. The following motion, moved by Mr, Blyde and seconded by Mr Candy, was carried unanimously:— “That this Dominion daily conference wishes to express its intense disappointment and indignation at the unsatisfactory reply by the Minister to the questions asked of him. the position being that payment of the price announced will constitute a substantial cut in the dairy-farmer’s net return and will leave no possibility of his recovering full costs of production. However, in view of the . concluding paragraphs of the Minister's letter this conference urges that the Minister give further consideration to an increased price to be paid for this season's output.”

Moved by Mr D. G. Begley (central ward) and seconded by Mr Bird, the following motion was carried: — "That this conference emphatically protests against any form of subsidy as a means of meeting increased costs, which should as a matter of right be added to the price paid by the Government, and that the conference convey to the Minister the viewpoint of the industry on this matter in an appropriate statement." ;