3-Man Tribunal To Decide On Butter

Press, Volume CII, Issue 30116, 27 April 1963, Page 12

3-Man Tribunal To Decide On Butter

(New Zealand Press Association/ WELLINGTON, April 26.

An independent tribunal of three men would decide the dairy producers’ claim for a higher price for local market butter, the Prime Minister (Mr Holyoake) said tonight. He said full details would be released on Monday. The tribunal members had been “completely agreed upon” by both parties. The dairy industry is pressing for a return of 36.25 d a pound for butterfat sold locally as against the guaranteed price of 32d a pound for export

There was neither legislation nor precedent to guide the Government or the dairy industry on the local butter market issue, the Minister of Agriculture (Mr Taiboys) said earlier today. Because of this it had been decided to establish an independent tribunal to determine the claim. Mr Taiboys was commenting on a statement made by Mr V. F. Cracknell, president of the Social Credit League, in relation to the basic price tor tairy produce. Mr Taiboys said the Dairy Board's current ■ discussions with the Government related solely to butter sold on the local market which, in round figures, was near enough to 40,000 tons from a total production of 200.000 ton" of butter. Labour Refused The board had asked the Labour Government for talks on this question, but was refused. "The Prime Minister announced recently that the local market issue had been considered and the Government had recognised that the industry had a claim which would be referred to a tribunal. “After an exchange of letters between the industry and the Government last year, it had been agreed that the issue should be postponed until after Britain’s E.E.C. negotiations.”

Mr Taiboys said that when this position was clarified, the

Prime Minister took the initiative on behalf of the Government in opening discussions with the dairy industry. "The Government’s initiative and goodwill in this is acknowledged and appreciated by the Dairy Board," he said. Assertion Denied

"It was quite untrue, as had been suggested, that the Government had avoided making a decision by refering the industry's claim to a commission.

“In recognising the claim and establishing an acceptable procedure to determine it, the Government had made a decision which the Labour Government had avoided, or rather had decided in the negative."

Mr Taiboys said that even the facts and figures on which Mr Cracknell's statement was based were wrong. The Minister described Mr Cracknell’s statement as “another example of Social Credit ’pie in the sky.'” “The Social Credit League says that the New Zealand farmer should be paid cost of production, irrespective of the return which dairy produce realises on overseas markets,” said Mr Taiboys. Tried, Found Wanting “Surely Mr Cracknell must know that this theory (the old guaranteed price ideology) has been tried, found wanting, and rejected by the dairy industry.” Mr Taiboys said that Dairy Board leaders had repeatedly stated that the industry recognised that it must stand on its own feet—that it did not want ’taxpayers* charity’ and that it must accept a basic price related to realisations over a period of years.

“I doubt whether Mr Cracknel] appreciates that at the dairy industry's own request in 1956 the basic price has, since that date, been fixed by an independent authority—the Dairy Products Prices Authority—and not by the Government." Equal Representation

On this authority there were representatives of both Government and dairy industry in equal numbers, meeting with an independent chairman “It would seem that Mr Cracknell’s Social Credit League considers itself better able to form such a judgment in the interests of the dairy industry than the authority. * he said.

Mr Taiboys said he recalled that the Labour Government ’ in its election campaign in 1957 made exactly the same promise now made by the ‘ Social Credit League of paying the industry a cost at production price. "This was never fulfilled. In fact, the cost of production st the time (1957) was stated to be 38.25 d and the guaranteed price was 36.25 d “In spite of the Labour Party’s election promise, the" following year, the first year of the Labour Government,-• the price was slashed to 32d.'’