“GROSSLY UNJUST TREATMENT”

Press, Volume LXXIX, Issue 23944, 11 May 1943, Page 7

“GROSSLY UNJUST TREATMENT”

BUTTER AND CHEESE PRICES DAIRY ASSOCIATION’S CRITICISM The allegation that grossly unjust treatment has been meted out to the dairy producers in the prices allowed this season for butter and cheese is made in the annual report of the South Island Dairy Association, Ltd., the annual meeting of which will be held next month. ‘‘ln our report last year.” states the report, “we mentioned that the Government had agreed to raise the prices for the present 1942-43 season by ,5d per lb for butter and ,31d per lb for cheese, making the new prices 15.39 d per lb and 8.73 d per lb respectively, and we drew attention to the fact that these prices were still below those which the Price Advisory Committee in 1938 had recommended to the Government should be paid for the 1938-39 season, in order to comply with the principles laid down in the Primary Products Marketing Act. “This committee, on which the Government had equal representation with the industry, unanimously agreed that the prices should be butter 15.605 d per lb and cheese, 8.775 d per lb, but Mr W. Nash, who was then Minister of Marketing, arbitrarily fixed the prices at 14,89 d and 8.42 d respectively, at which they remained for four years until the present season, showing a complete disregard of the committee’s findings and also of the increases in costs which had occurred since 1938.

"The prices allowed for this season represent an increase of little more than 3 per cent, on the old prices, and when regard is given to the facts related above and to the substantial increases in the rates of remuneration granted to other sections of the people during the last five years it should be clear to everyone that grossly unjust treatment has been meted out to the dairy producers of this country. “The prices which are being paid by the British Ministry of, Food for this season's production are 117s sterling per cwt for butter and 73s per cwt for cheese. In New Zealand currency these prices are equivalent to 15.67 d per lb butter, and 9.77 d per lb cheese or .28d and 1.04 d respectively more than the Government's prices the producers (butter-fat, say ,34d per lb to butter; suppliers and 2ld per lb to cheese suppliers). On an estimated production of 130.000 tons of butter and 90.000 tons of cheese the surplus proceeds should amount to £1.212,125 (butter £339.625, cheese £872.500), After allowance is made for the special payment of IJd per lb butter-fat on this season’s supply to those suppliers who changed over from butter to cheese and have this season changed back to butter, and for payment of all the other costs charged by the Marketing Department to the Dairy Industry Account, there should be a substantial balance remaining for distribution to the industry.”