THE GUARANTEED PRICE

Press, Volume LXXIII, Issue 22195, 11 September 1937, Page 16

THE GUARANTEED PRICE

Farmers Complain To Minister PROMISE SAID TO BE NOT FULFILLED No Provision For Higher Costs IFrom Our. Parliamentary Reporter] WELLINGTON, September 10. Claims that the guaranteed prices for dairy exports during the current season are totally inadequate were made by a deputation representing the New Zealand Farmers' Union and Southland dairy farmers, which waited to-day on the Minister for Marketing (the Hon. W. Nash). The following resolution, passed at a meeting of the Dominion executive of the Farmers' Union, was placed before Mr Nash: "That the price for dairy produce as recently announced by the Minister for Marketing is totally inadequate and in no way, fulfils the promise made by the Government to the dairy farmer." _ . „ The statement submitted to the Minister by the deputation said inter alia: "First, we wish to emphasise the fact that the report or reports of the investigating committee have not been made available to the industry. Conseauently. we are not in a position to examine the methods used in arriving at the price determined on by the 'Government. We cannot believe that those on the committee who are practically conversant with farmers costs could arrive at an increase of slightly less than 2d a pound of butter, to be pretise U-16d. Two organisationsrthe New. Zealand Co-operative Dairy Company and-the New Zealand Farmers' Union—submitted reports to the committee showing increased costs up to the end of the 1936-37 season amounted to 3d a pound more than the previous year. The difference between, 3d- and 11-16 d is very great, and it seems incredible that an error of this magnitude can have been made by these two bodies. It may be that the bases of calculation have been different, but we cannot make < any further comments on the position until the full reports are released. We ask that the Minister release the full xaports without delay. Increased Costs "As the working dairy farmer sees the position," the statement continued, "the increased price is about Id a pound of butter-fat Costs in butter factories for the 1936-37 season are up at least id a pound of butter-fat, calculated over the whole season's production, and these increased costs were current for only part of the season. The yearly cost on last season's basis would be near id a pound. Costs on the farm, whether statisticians or accountants can find these increases or not,^ are to every farmer's knowledge definitely up. These increase's, are difficult to quote with exactitude as Dominion averages, but every farmer knows that the increase is appreciable and, in many cases that we have investigated, the increase is Jd a pound of butterfat "Taking the increased dairy factory costs and farm costs together.thei increase is certainly more than id, thus more than cancelling out the increase of id a pound of butter-fat. But the position is much worse than that Employees in dairy factories are now asking the Arbitration Court for increases. When increases are granted, as it appears they will be, then the dairy industry will be loaded with further increased costs for which no provision is made in the new guaranteed price. Further, employees on dairy farms are to receive increased wafes. The Minister for Labour (the Hon H. T. Armstrong), before he went abroad, informed representatives of the New Zealand Farmers' Union.that the new guaranteed price would include an increase which would enable the dairy farmer to pay at least £2 5s a week plus board. That is an increase of 2s 6d a week. If this is the case, then for the season 1937-38 there will be a further load of about id a pound of butter-fat and no provision to meet it So we say that the 11/lfd increase in the price for butter-fat will not meet the increases in costs made during the last season, and in addition further increases because of factory and farm wages will have to. come out of the payments received, actually leaving the dairy farmer with les* net income than he had during the last season. Arguments Enumerated "We have carefully considered the whole position and we contend that—"(a) The price announced will not allow the dairy farmer to pay competitive rates for wages which alone can ensure efficient labour on dairy farms. Farmers' wives and children will be forced into the milking shed as never before. ... , "(b) The price announced will not allow the dairy farmer reasonable interest on the capital invested, in his farm and stock. Further, farmers will not be able to find anything to reduce a table mortgage, much less to off anything on a flat mortgage;' #f "(c) The price announced will not enable the dairy farmer to meet the increased costs that will inevitably be oiled on to the industry in the coming season. In addition to the increases in dairy factory wages and farm employees' wages there will be increases in all items concerning the cost of living and production. County rates are generally increased, in some cases very considerably. We have an instance in one district of an increase of l-3d a pound of butter-fat. "A Croel Mockery" "(d) The price announced does not appear to give the dairy farmer payment at even the standard rate of unskilled workers. We would point out that the farmer is a skilled worker, has capital invested in his farm, and must have managerial ability. He works much longer hours than workers enjoying award rates; yet his remuneration is to be lower than the standard set for unskilled workers. To talk about 'a reasonable standard of living' for the dairy farmer or to go so far as to refer to his 'standard of comfort' is, to men and women engage.d in the dairy industry, nothing but "a cruel mockery. "For the foregoing reasons and for others which we recognise it is needless to reiterate, we say on behalf of the dairy farmers of New Zealand that the firice announced is a complete negaion of that social justice promised the dairy farmer." The plight of dairy farmers in Southland and Otago was mentioned speci-. fically by Messrs G. R. Herron, T. F. Paul, and D. Rutledge. They stated that already this year five small cheese factories in Southland had been forced to: close down and. more were likely to be put put of business. The speakers added that since the announcement of this year's guarantee, the price of dairy cattle, particularly in Southland, had slumped. Their general request was that a different standard should be applied to dairying in the South Island because dairy farmers there had to contend with markedly different clljnatic conditions. . i