Mr Linton Replies To Mr Walsh On Dairy Industry

Press, Volume XCVII, Issue 28573, 30 April 1958, Page 14

Mr Linton Replies To Mr Walsh On Dairy Industry

“It is regrettable, I think, that in his position as president of the Federation qf Labour, a man of Mr Walsh’s undoubted ability should have made a purely political attack on the dairy industry,” said Mr A. Linton, chairman of the New Zealand Dairy Board, last evening. He was commenting on Mr F. P. Walsh’s report to the Federation of Labour conference yesterday. “In essence, Mr Walsh is saying that the dairy farmer must have a substantial cut in his remuneration, but that the wages of the unionists he represents must remain untouched.

“The guaranteed price System was introduced by the Labour Government and the fact that the industry built up its reserves of £2Bm to cushion price falls is proof that Mr Walsh’s allegations about the dairyfarmers’ irrespon-

sibility, are untrue,” said Mr Linton.

“There is one reason—and only one reason—why these reserves have been rapidly depleted and this is because of the dumping of thousands of tons of butter on the British market. Mr Walsh is very well aware that this is correct—in fact he has helped the dairy industry by pointing this out to the Trades Union Congress of Great Britain. “Through his representations, the Trades Union Congress, representing many millions of Brit ish workers, is strongly supporting New Zealand’s case for action being taken by the United Kingdom Government to overcome the injustices under which our marketing is operating today. It is because Mr Walsh so thoroughly understands this position that I find his address to trade unionists in New Zealand so disappointing. Dairyfarmers’ Earnings

“The fact that the Government Statistician's own figures show that dairyfarmers are the second lowest income group of all selfemployed persons in the Dominion, itself refutes some of the more flamboyant statements Mr Walsh has made. The industry has always taken a realistic view on the guaranteed price and has always been prepared to discuss ways and means of bringing about a lower cost structure within the country.' “Mr Walsh’s attitude that there must be no readjustment, except for the dairyfarmer, is extremely unhelpful at a time when everyone in a responsible position should be anxious to assist in bringing our economy soundly into line with current conditions Right from the inception of the guaranteed price scheme, the dairy industry adopted the policy of trying to keep costs down, rather than having increased prices. It has not changed its views, apparently, in any readjustment needed to allow New Zealand to face up to lower price levels in world markets. Mr Walsh is ready to take the narrow partisan viewpoint, rather than face up to the real issues,’’ said Mr Linton.

[Mr Walsh’s Report on Page UJ