FRUIT INDUSTRY PROBLEMS

Evening Star, Issue 22718, 4 August 1937, Page 13

FRUIT INDUSTRY PROBLEMS

THE GIAIAITEE INADEQUATE GROWERS’ WAGE-PAYING DIFFICULTIES [Per United Press ' Association.] WELLINGTON, August 3. “It is.rather difficult to understand why the fruit industry, which admittedly is not in a prosperous condition, should havo been picked out to bear higher wages and greater restrictions of hours than any other primary industry in New Zealand,” said the chairman of the New Zealand Fruit Export Control Board (Mr H. E. Stephens), at the annual conference to-day. Mr Stephens said that the export guarantee for the 1937 season had been increased by the Government from 10s to 10s 6d per case, c.i.f., to enable growers to pay higher wages to labour. This action applied only to 30 per cent, of the crop which was exported from New Zealand, although the other 70 per cent, of the crop also had to bear the increased charges. The Government, therefore, announced that it would make available £40,000 as a subsidy on locally-sold fruit, provided that the increased returns were not sufficient to meet the increased costs due to higher wages. The difficulty in regard to this proviso was that the grower had to meet increased costs week by week, and it would .be many months before bo would know what amount, if any, he was entitled to rc,ceive from the £40,000, Tin's form of guarantee had not resulted in the employment of more labour, as had been hoped. The main person to benefit had been the small grower, who employed little or no outside labour.

There had been an increasing amount of work done by wives and families on tho orchards, and a very definite tendency to restrict the amount of fruit handled to what could be done by a family with tho employment of a minimum amount of hired labour, Mr Stephens continued. It was also noticeable that maintenance work was not being kept up to standard owing to the high wages. On the larger orchards more difficulty was being experienced, Air Stephens said, and owners were diffident about investing further capital in them owing to . the fear of future legislation and the rising demands of the. labour unions.

" Such measures as .. guaranteeing prices, raising wages to increase the buying capacity or the workers, and employing surplus labour on unreproductive work only temporarily relieve the position, and a permanent cure can be effected only by rationalising primary production,” Mr. Stephens said. “'The real objective to he aimed at is to be able to place our products on the world’s markets at world market prices, so that the .producer will be able to obtain a, fair return for his labour. If in trying to attain this it is found that the return is insufficient to give all labour handling the produce the high standard of living that, the Government desires, then it will be the' Government’s duty to find ways and means of making up the difference, of if sacrifices have to. be made the Government must see that the burden is borne equally. If hired’ labour is to' be guaranteed a certain standard; tlxeh it is equally desirablethat the ; pr,6ducew,and the employe'/ of labour should lie, also ;guaranteed to the same, extent. I’' 1 ’'

; Mr T. C. Brasli, president of the New Zealand Fruitgrowers’, Federation, said that the increase of the Government guarantee from 10s to 10s 6d had been a generous gesture to meet the cost of higher wages for the 193" season, hut it would not be adequate for 1938. Packing materials alone would be up in price by 6d a case, and growers would have to bear the burden of higher wages for a full year, which they had not had to do in 1937. It was decided to urge that in future the ; Government guarantee to growers should he given at so much per case at the _ grower’s assembly point. It was pointed out that because of the variation o r the consolidated charge, the present system of paying the guarantee did not give growers in different ; districts the same net return. Among. other remits carried were:— “ That the Government should be asked to pay a compensating minimum price on all fruit exported through the New Zealand Fruit Export Control Board.” “ That the Government should be asked to secure more direct shipments to ports on the west coast of England, or, alternatively, through freight from the port of discharge.” “ That when export fruit is not loaded at a local port _ which can accommodate overseas ships, and when such fruit is transhipped to another port, th© cost of transport should he absorbed into tho general overseas freight.” “ That the whole question of the rest of cases should lie considered.” It was . contended that the to si of cases at present , was out of proportion to the return to growers, .amounting to as much as 20 per tent, of tho export return. “ That the hoard should use every endeavour to increase the Nelson, Napier, Gisborne, and Picton loading, and that tho Nolson Harbour Board should be asked to provide increased wharf facilities.” A remit that the hoard should take tho necessary steps to have ail export fruit pooled according to variety, grade, and size on a Dominion basis, was defeated.