WORSE OFF

Waikato Times, Volume 121, Issue 20253, 23 July 1937, Page 8

WORSE OFF

DOMINION FARMERS. COMPARISON WITH LAST SEASON. ABNORMAL RISE IN COSTS. (Special Reporter.) CAMBRIDGE, Friday. Farmers employing labour are worse off by 1.43 d per lb. butterfat for cheese and I.lßd per lb. butterfat for butter In comparison with the 1935-36 season when their actual net account Is examined, stated the chairman of directors of the Cambridge Cooperative Dairy Company, Mr W. Harbutt, In his report to shareholders of the company at the annual meeting In the Cambridge Town Hall this morning. This was due In the main to the Increases In wages, the rise In the cost of farm materials and Increased factory costs which together amounted to 2.22 d for cheese and 2.09 d for butter, said Mr Harbutt. The people of the Dominion were reaching the danger point in the burden of taxation, he said, for they were now more heavily taxed than those of either England or Australia. It seemed that the time was now opportune if redress were not given that the people should refuse to pay unemployment taxation and allow the law of supply and demand to solve the problem. “Whether we agree with the principle of price fixation or otherwise one fact can be mentioned —that the arrangements made by the Marketing Department to forward payments and all details have worked without an> hitch throughout the year,” said Mr Harbutt in moving the adoption of the report and ibalance-sheet (previously published). “Manufacturing costs have risen, which was anticipated, but not to the same degree as was expected chiefly owing to the manufacturing requirements being bought before a serious rise occurred. This coming year must again show a substantial increase in costs.

“It may be mentioned that prices are still rising; wire has gone up £7 per ton, parchment £l2 per ton, and several other large lines have also risen since your board placed this year's Indent for manufacturing requisites. When we met last year, I suggested that I did not wish to hear the guaranteed price until we knew what costs were going to be. May I be permitted to make the same observation now, and hope that before the committee which the Government has appointed to make recommendations as to what is to be a just and fair return to the farmer makes its report, that the wages will be known for the current year and not have an increase made, as it was last season after the guaranteed price was fixed. Guaranteed Price. “ The company has exceeded the intended guaranteed price for butter and | equalled that for cheese—but between its own departments of butter and cheese it shows only .OGd. This position was pointed out to suppliers at the beginning of the season, when, working on last year’s costs .99d would have been paid, the difference being accounted for by added wage and factory costs. “ If the farmers actual net account is examined those who have been employing farm labour are worse off by 1.43 d per lb. butterfat for cheese, and I.lßd butterfat for butter in comparison with the 1935-36 season, when increases in farm wages of 1.61 d, farm materials .3ld, and increased factory costs for cheese .30d and butter .195 d are taken into consideration. These increases total 2.22 d for cheese and 2.09 d for butter. “ No allowance is made for extra wage to farmer or for increased living costs. These wage costs only commenced on October 1, 1936, so will be higher when a full year’s increase Is allowed for. These figures can be substantiated and without doubt many further cases can be produced proving that the position has not been exaggerated and is correct. Final Account Sales. “ When the final account sale's of this year's produce are received by the Marketing Department it may be expected that tlie butter port ion of the Dairy Industry Account will be about even, but, there is sure to be a big surplus on the cheese portion," said Mr Harbutt. “ The cheese’ industry, after going through several years of low returns, came again into its own as the London price over the past year will prove. “The guaranteed price policy of tlie Government has caused the company to decide that another of its branches cannot economically operate, if market values had been paid to suppliers they would have received Is s*d per lb. butterfat instead of the guaranteed price of is 2id, so it therefore necessarily follows all of our branches would have been working to full capacity. ” The position has been placed before the Government asking for a disbursement of the cheese surplus, ami also that the industry should lie given further assistance in price to maintain its stability. • Reaching Danger Point. “ We in New Zealand are reaching now the danger point in the burden of taxation. For many years England was considered per head of population the heaviest taxed country, but that honour (if it can be so termed) has been transferred to us. and where British taxation is £l6 12s per head. Australian £ls 6s ltd. in New Zealand we are paying £l9 15s. From demands being made by combined labour unions and proposed government legislation, the position is going from bad io worse, and will soon lie, beyond the capacity of any industry, or the primary producer, to pay. “When the slump occurred in 192930 the then Government caused to be passed the unemployment tax. The present Government in its election promises was going lo remove unemployment, also the tax. hut has it been done? Can it be placed to the credit of the past or present Governments, its ability to govern, when a country of 1,500,000 people are taxed for unemployment to the extent of £4,500,000 annually.

“ May ) suggest the time is now opportune, if redress he not given that the people should refuse to pay unemployment taxation, and allow the

law of supply and demand to solve the problem. If a person has work offered him, though it may not be that for which he has been trained, should he be allowe'd sustenance and the right to choose his occupation while other sections can not secure the labour they urgently need? “ I venture to predict that If, say, three months’ notice were given that the unemployment taxation was to be stopped, the great army of able-bod-ied men now walking the streets of our big towns and refusing work, would very soon find Jobs for themselves.” Bobby Calf Industry. "The question of collecting and marketing bobby calves is one that requires serious attention and organisation and if a practical scheme is not shortly put forward I am afraid the dairy farmer will again be regimented under control. “The farmer would be best served both by service and price for calves If he formed at suitable localities pooling centres, taking Cambridge, Hautapu, Bruntwood and all country converging on rail from these districts as one pool. The calves would be weighed when lifted by carrier, consigned to nearest freezing works killed and dressed and each week’s pool of meat, skins and offals sold to the highest tender. The areas of collection would be zoned and tenders called for carting from each zone. If such a scheme were organised, a local agent could pay out an advance for calves, balance received from pool, and also pay the carrier according to his zone and contraot prices," concluded Mr Harbutt. Discussion on Report. The advisability of appointing a general manager in order further to Improve the quality of the company’s products, was stressed by several suppliers. Mr H. H. Schwieters considered that a general manager would be nothing else but an incubus and the position would be better remedied If the branch and departmental managers met at regular periods to discuss the various problems that might arise. At the last meeting of the board, he had told the directors that the company's policy of doing without a general manager was proving itself to be correct, stated Mr F. H. Anderson, a director of the company. A union of factory managers had been formed and it had already asked for a substantial rise in wages. Thus it would be seen that Mr Schvvieter’s suggestion was the better proposal under the circumstances. Before the election farmers believed that they were going to reoeive a minimum guaranteed price and did not realise that their produce would be commandeered, said a supplier, who urged the meeting to demand an Immediate distribution of any surplus in the Dairy Industry Account. The time had come for the farmer to adjust matters in the bobby calf industry, otherwise it would be logical to expect the Government to take over the industry, said Mr Anderson, who suggested that a committee of farmers should be formed with a view to forming a pool in the Cambridge district next year. Election of Directors. The retiring directors, Messrs M. Wells and W. F. Duncan, were reelected to the directorate. .Messrs Sanson and O’Meara were appointed auditors. The directors’ honorarium was fixed at £320.