DAIRYMEN'S MOVE

Evening Post, Volume CXXVII, Issue 92, 20 April 1939, Page 10

DAIRYMEN'S MOVE

GUARANTEED PRICE

NEW COMPUTATION

A SLIGHT INCREASE

A recommendation that the guaranteed price for dairy produce for the 1939-40 season be the price recommended by the 1938 Advisory Committee for the 1938-39 season Avas agreed to by the New Zealand Dairy Board conference today. The conference expressed its disagreement with the proposal of the Minister of Marketing (the Hon. W. Nash) that the current prices should obtain for the 1939-40 season, but in vieAV of the Minister's desire to check rising costs offered to forgo, in the computation of the price for the 1939-40 season, the ascertainable increases in costs. The result of the recommendation, if given effect to, it was stated, was that there would be an increase of .71 pence in the guaranteed price. The report, which was adopted enthusiastically by the conference, is as follows: — This conference congratulates the Dairy Board on its success in establishing the principle of the Price Advisory Committee to recommend to the Minister of Marketing the just sum' for the guaranteed price. That for the 1938-39 season the standards and conclusions as recorded by the 1938 Guaranteed Price Investigation Committee be endorsed as correct, and the conference protests against the alteration of such standards and prices by the Minister., That this conference is unable to agree to the Minister's suggestion that the prices fixed by the Government for the current season should be continued for tile 1939-40 season. That the conference is of opinion that in order to do justice to the producer and give effect to. the provisions of the Primary Products Marketing Act, the price to be paid for the 1939-40 season should be the price recommended by the 1938 Advisory Committee, plus ascertainable increases in costs since the date of the committee's report. That this conference endorses the efforts of the Minister to check rising costs, and that as a practicable measure of co-operation with the Minister the conference offers to forgo the ascertainable increases in costs and to accept for the 1939-40 season the standards and prices recommended by the 1938 Advisory Committee for the 1939-40 season. That the board be requested, in collaboration with the representative committee, to continue negotiations with the Minister. AGREED TO BY ALL. Presenting the report of the committee, Mr. W. Marshall said that the report had been discussed by the full meeting of the representative committee of the New Zealand Farmers' Union, the National Dairy Federation, the South Island Dairy Association and the Dairy Board. These organisations had been collaborating with the Dairy Board on all vital matters pertaining to the guaranteed price. The committee of the conference had approached the matter with a due sense of responsibility, first, to the producers whom they represented; second, to farmers who were not engaged in dairying; and third, with a sense of responsibility to the country in which they all lived. "MUST BE REALISTS." Speaking as to the endorsement of the 1938 recommended price, Mr. Marshall said that they had to be realists and face the position as it existed today. In doing so, they must recognise that whereas the Minister refused to agree to the recommendation facing a General Election, it was inevitable that they should think that he was likely to give them that price with the election behind him. They had to recognise that all they could get for this year was the price the Minister had agreed to pay. The conference should endorse the suggestions of the committee and protest against the altera- . tion of the standards and prices by the Minister. Referring to the liability of the conference to agree with the Minister's proposal that the current price should be continued for the 1939-40 season, he stressed the desirability of equity in the rod used for measuring farmers' services with services rendered by other sections of the community. He suggested that the conference should take its stand on the advice of the 1938 committee. Dealing with the Minister's desire to check rising costs, Mr. Marshall said that the Minister desired that the conference should do something to check those costs, and the committee thought that that suggestion was of such importance that it must have the serious consideration of the industry. If, as present indications were, the spiral of costs continued to rise, it must inevitably react on the primary producer, and sooner or later there must be a harvest of serious consequences. The committee thought that the conference, representing the men, women, and children working on the dairy farms, must take the long view and realise that their interests were going to be sacrificed in the long run if costs continued to rise. At some point the price that was received had to bear some relation to some extent to the price the produce brought overseas. "We cannot turn a deaf ear to the request of a responsible Minister of the Crown to uo something to check rising costs," he said. "This will be in the interests of the primary producer and of the country after all." It meant, continued Mr. Marshall, that the conference offered to accept for the coming year the standards recommended by the committee, but at the price level which existed at the beginning of last season. They offered to forgo the ascertainable increase in costs since the committee reported and next season. "That is a substantial measure of cooperation with the Minister, and it indicates that we are prepared to assist him in his campaign to check rising costs." It would mean, he added, 0.71 d greater than the price paid this season. Finally, the committee thought that the industry would be prepared to make sacrifices provided a sacrifice of equality was made by other sections of the community. "We are willing to go step by step provided others are asked to march along with us." SPECTRE OF QUOTAS. Mr. Marshall said that the committee recognised also the necessity for increasing production. "The spectre of quotas still looms over us like a shadow," he remarked. It was desix*able that production should be increased and a reduction in the costs

of production brought about. Though the committee recognised that there was room for diversity of opinion, they thought they should be united on vital issues, and if there was no sacrifice of principle they should sink their differences.

Mr. C. P. Agar said that the report had sacrificed no principles, but had indicated what was impossible to achieve and had not asked for what was impossible. They had accepted the Minister's offer to co-operate in an effort to bring about stabilisation.

A telegram was read from Hamilton, in which the Waikato sub-provin-cial conference of the New Zealand Farmers' Union unanimously resolved that nothing less than the 1938 recommended price for butter was in accordance with the letter and spirit of the legislation.

Mr. F. W. Seifert said that when the price was reduced by fd a pound the industry should have been called together. If the Minister refused to agree with the recommendation now made, he considered that the industry should consider the matter again.

Mr. W. N. Perry said that it was not fair for the industry to forgo costs unless there was a guarantee from the Government that there would no'; be an increase of costs in the 1939----40 season. Dairy industry employees were asking for a new award, and increased wages or reduced hours would be added costs.

The committee's report was unanimously adopted. Mr. J. S. Tosland considered that Mr. Seifert's suggestion was a threat to the Government. If the Government refused to meet the industry the Dairy Board might take the matter up. The chairman of the board (Mr. W. E. Hale) said that the board would not hesitate to call the conference together if it was thought necessary. Mr. Seifert: I am satisfied with that.