DAIRY PRICE RAISED TO COVER WAGES

Greymouth Evening Star, 26 April 1949, Page 3

DAIRY PRICE RAISED TO COVER WAGES

(P.A.) WELLINGTON, April 25. Announcing an increase in the guaranteed price for butter-fat from June 1, the chairman of the Dairy Products Marketing Commission (Mr W. Marshall) said that for June and July the price for butter paid to dairy factories in New Zealand would exceed by about 4s 6d a hundredweight the price paid by.the United Kingdom Ministry of Food for New Zealand butter.

The guaranteed price has been increased because of the standard wage pronouncement of the Court of Arbitration and provides for an increase of 11s 8d a week in the labour reward on dairy farms. A new season will begin, on August 1 and the commission will then fix a price for that- season. Mr Marshall’s statement was as follows:—

“The, New Zealand Dairy’Products Marketing Commission, having -had regard to the provisions of section 16 of the Dairy Products Marketing Commission Act and the recent pronouncement by the Arbitration. Court, of new standard rates of wages, has* fixed prices to be paid in respect of butter dnd cheese acquired by it andmanufactured in New Zealand from June 1, 1949, to July 31, 1949, as follows:— Creamery Butter Finest grade (94, points and over), 25.8687. . Finest (93 to 93-|), 25.7437 (basic price). First (92 to 94|), 25.6812. First (90 to 911), 25.4937. Second grade, 24.9937. Whey Butter First, 24.7437. Second,. 24.2437. Cheese Finest (94 points and over), 14.20485. Finest (93 to 931), 14.1736. Finest (92 to 92j), 14.0486 (basic price). , , First grade (91 to 91|), 13.9861. Second, 13.7986. “It is estimated that these prices will enable efficient dairy factory companies to pay to suppliers 28.146 d per lb for butter-fat for butter manufacture and 30.146 d per lb for butter-fat for cheese manufacture. The structure of the guaranteed price on June 1, 1949, will become: Interest on capital, 3.240 d per lb butter-fat; farm working and maintenance, 10.179; labour reward, 16.267; total, 29.686. Less standard allowance for pigs, 1.54. Net total, 28.146. “The above price represents an increase for the labour reward in terms of butter-fat of 1.395 d on the amount paid for the period August 1, 1948, to May 31,' 1949. The increase in the labour reward will provide for an additional 11s 8d a week for each adult, male unit of farm labour. The total labour reward equivalent in farm workers’ wages, including the allowance for board and lodging, then becomes £6 11s 8d a week, plus 15 per cent., which amounts to 19s 9d, allowed in consideration of the fact that work is done at the week-end and on holidays as part of the normal week. British Price Exceeded

“The altered labour reward will involve an increase in farm workers’ wages and this matter is being referred to the Minister of Labour for his consideration and submission to the parties concerned. “The new guaranteed price for June and July will mean that the commission will, for that period, be buying buttei’ at a cost which will exceed the price being paid by the United Kingdom Ministry of Food for New Zealand butter by approximately 4s 6d a hundredweight.”

Section. 16 of the Act provides that the commission may increase prices during a season. It provides that in fixing prices the commission shall have regard, among other things, to “the general standard of living of persons engaged in the dairy industry in comparison with the general standard of living throughout New Zealand.” Another sub-section provides that if the accounts of the ' commission disclose a debit, or'if it appears to the commission that the accounts are likely to disclose a debit within the next 12 months, the commission, before it fixes any prices, shall consult the Minister of Marketing.