GUARANTEED PRICE

Dominion, Volume 33, Issue 284, 26 August 1940, Page 9

GUARANTEED PRICE

Industry Asks For An Increase Forthwith

MR. HALE’S STATEMENT

Effect Of Recent Order By Arbitration Court

“Because of increases in costs which have occurred recently, and particularly because of the 5 per cent, cost of living bonus recentlygranted by the Arbitration Court, the Dairy Industry Council, on behalf of dairy-farmers, is asking the Minister of Marketing, Mr. Nash, that the guaranteed price for dairy produce 7 be increased forthwith,” said the chairman of the council, Mr. W. E. Hale, in a statement last night. “The Dairy Industry Council, which includes representatives of all the principal organizations connected with the dairy industry, when it met in June last gave consideration to the guaranteed price, and pointed out to Mr. Nash that despite increases in costs which had occurred since the pr<*ent price was fixed in 1938, the council wished to avoid asking for irny increase in the price,” added Mr. Hale. “It then intimated its willingness to meet represenatives of the Government and of those who would be affected by a policy which aimed at arresting rises in costs. “No reply has been received to that letter, and at its meeting first Thursday the council expressed regret that this was the case. It agreed to a suggestion which had been made verbally by -the .Minister that there should be a conference of .the Government, the producers, the manufacturers, the Federation of Labour and the Civil Service, with ir view to exploring the possibility of a stay-put in wages and standardizing costs, tout could not agree that such a conference disposed of the question of the guaranteed price for the current season.” The Council’s Letter. Mr. Hale said that the letter written to the Minister on behalf of the council in June read as follows:— “The Dairy Industry Council met today to consider several matters relating to the industry, including the question of the guaranteed price for dairy produce. “Information submitted to the council showed that the costs in the industry have risen steadily since the price was fixed two years ago and are continuing to rise. In this connexion we enumerate some Increases in wages -which have been given recently, and which must directly affect the cost of the production of dairy produce:—

(1) Increase of approximately 5 per cent, in the wages of county council labourers. (2) Increase of approximately 5 per cent, in the wages of country lorry drivers. (3) Increase of 5 per cent, to coal miners which, though apparently covered ’by a subsidy, must toe a charge on production. (4) Increase of approximately 5 per cent, in the wages of waterside

workers. “In addition, applications are pending to the Court of Arbitration for an increase in the dairy factory workers award, the local body drivers’ award and a “blanket” increase for a cost of living .bonus, Itf the fact that the 8 per cent, bonus awarded to the Auckland tramway workers to cover the increased cost of living is an indication of what may be expected, we desire to point out that a similar increase in the labour reward of the dairy-far-mers as set out in your own allowance would represent an additional ,70d. a lb. butterfat.

“If the policy is to grant increases to various sections of the community to cover increased costs, the dairy-far-mer in equity is entitled to be placed on the same basis. This 11’0016 mean that he would require an increase to cover the following items: — (1) Increased costs since the present price was fixed in 1938. (2) Additional costs which will follow as H result of recent increases in wages enumerated in this letter. (3) A comparable increase in the labour reward to meet the higher costs of living. Margarine Competition. “The council realizes, however, that conditions today necessitate the greatest possible assistance to Great Britain, no matter what sacrifice is entailed. It would he a step in the right direction for us to sell our products to Great Britain at the lowest possible price. Additional reasons for keeping down the price are 'the serious competition which has already developed (from margarine and also the fact that after the war it will, be necessary for us to sell in an impoverished .market where the acceptance of a figure as low as lOd. or 1/a pound may have to be faced. _ “The council is satisfied that dairyfarmers are willing to make every possible effort to maintain and increase production, and to bear their full share of all sacrifices which may be necessary. As tangible evidence of this effort, we desire, if possible, notwithstanding the increases in costs which have occurred, to avoid asking for any increase in the fixed price which we have received during the past two years. With tr view to reaching this desirable objective, we further intimate our willingness to meet in conference the Government and. representatives.of those who must ibe affected by a policy which aims at arresting rises in costs. Equivalent Rise Sought.

Mr. Hale said that the council had carried the following resolutions at its meeting on Thursday: — "That the Dairy Industry Council expresses regret that no written reply has been received from the Minister of Marketing to the representations which were made to him in writing on June 18 last. It has, however, learned from the chairman of discussions which have taken place between Ute Minister and delegates from this. council, and hns considered the Minister’s suggestion that a conference should bo held between representatives of the Government, the producers, the manufacturers, the Federation of Labour, and the Public Service, with n view Io exploring the possibility of securing a stay-put in wages, anil standardizing costs in general.”

“This council desires to indicate that it is prepared to lake pari in any conference which may lie arranged by the Government having for its object the arresting of the movement of rising costs in New Zealand. We, however, cannot agree that such a conference would dispose of the question of the prices whiph should be paid for butler and cheese for Ute current season. Substantial increases in the cost of production have already taken place, the latest of same being the 5 per cent, cost of living bonus recently granted by the Arbitration Court; and we now respectfully, but definitely, ask that these increases should lie covered by mi equivalent increase in flic guaranteed price as provided in sub-section -1 of section 20 of flm Primary Products Marketing Act, 1936.”