DAIRYING COSTS

Dominion, Volume 36, Issue 230, 24 June 1943, Page 4

DAIRYING COSTS

Government Acceptance O Principle

BACK TO 1938-39 LEVEL Dominion Special Service.

BALMEiRiSTOiN N., June 23.

At the annual conference of the National Dairy Association in Palmerston North today the Minister of Marketing, Mr. Barclay, stated that the Government was prepared to accept the general principle that costs in -butter and cheese production, dairy farming, factory requisites and other agreed costs should as far as practicable at the 'beginning of next season be taken back to the 1938-39 level. He said the Government’s economic stabilization policy, particularly in relation to the dairy industry, was based on the assumption that the industry accepted the ,Gl<l. war cost allowance as covering the labour award. Complete agreement had now been reached between the Government and the Farmers' Federation on the farm stabilization accounts, 'Mr. Barclay said. He then read a final letter from the Minister of Industries and Commerce, Mr. Sullivan, to the Farmers' Federation covering the points of the agreement. Referring to the British Food. Ministry's appeal to New Zealand for butter and cheese, Mr. Barclay said he felt justified in asking producers to make every effort to meet those wishes. Britain needed 6000 tons -more cheese. He proposed. with the concurrence of the conference, to recommend the Government to revoke the Dairy ‘Supply Control Order, 1042, as he considered it the simplest and most direct method to secure the extra cheese production without disorganizing the dairy industry. He emphasized that the new circumstances did not imply a swing away from butter to cheese production, and he hoped the industry would co-operate in maintaining the balance between cheese and butter. There was every indication that Great Britain was willing to take in one form or other all the foodstuffs New Zealand produced in the coming year.