DAIRY INDUSTRY PRICES

Press, Volume XCVII, Issue 28599, 30 May 1958, Page 3

DAIRY INDUSTRY PRICES

State Subsidy Opposed (New Zealand Press Association) WELLINGTON, May 29. The dairy-farmer had no right to expect others to contribute towards ensuring him a living standard so very much better than theirs, the president of the Federation of Labour (Mr F. P. Walsh) said today. The dairy industry must get back to a self-supporting basis, rather than the burden of dairy losses be shifted on to the taxpayer. Mr Walsh was replying to a statement this week by the chairjman of the dairy section of Federated Farmers (Mr R. Woolerton). Mr Walsh said: “Once again Mr Woolerton has given us a series of sweeping general statements without any solid foundation of fact. He still wants to hold the country to ransom. “As the price of ‘unity,’ he is demanding an annual subsidy large enough to maintain dairy farmers’ incomes at a figure ' which is nearly double the amount iof the average wage or salary. I Then he has the effrontery to say ‘we do not want class distinction.’ “I have, to remind him that the ! £1378 per annum was the average 1 net income of a dairy-farmer, that is, the income left over after paying his expenses on the farm. The dairy-farmer has the same rights as anyone else to a reasonable standard of living, but he has no right to expect others to contribute towards * ensuring him a living standard so very much better than his own. “Mr Woplerton says: ‘Any i business must show a return for ! capital invested, for managerial ability, and a return for labour.’ “The basic principle, which he ignores, is that any business must show a profit before it can pay dividends on capital or anything else. The present need is not to shift the burden of dairy losses on to the taxpayer, but to put the dairy industry back on a selfsupporting basis,’’ said Mr Walsh.