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THE Hauraki Plains Gazette With which is incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY. Motto : Public Service. WEDNESDAY, SEPTEMBER 1, 1937 GUARANTEED PRICES.

WITH all the data before it, including the recommendations of the Price Committee, the Government has increased the basic price at which it will purchase butter f.o.b. by .6875 d per lb. Last year the basic f.o.b. price was 12 9-16 d per lb. For the current year it will be 13|d. The Minister of Marketing states that this will enable the “average efficient company” to pay out not less than 13.88 d per lb. butter-fat. Last year this figure was set down at 13.04 d so that the pay-out should be increased by a fraction over four-fifths of a penny per lb. In the case of cheese the price will be increased from 6 13-16 to 7.54 d per lb. and it is estimated that this will increase the return to the producer by 1.34 d per lb. making it 15.88 d. This will establish the twopence margin promised by the acting Minister of Marketing, on the recommendation of the committee. The immediate task of both company managements and individual producers will be to ascertain their position in the light of these figures. The increases are well below the most conservative estimates made of increased costs on farms and in factories; indeed, the margin is so great that it will be interesting to compare them with the detailed statement promised by Mr Nash. No facts or figures bearing on the fixing of the prices should be withheld, because this is the first time that such factors as costs of production and the general standard of living of persons engaged in the industry have been taken into consideration, and the allowance! made under the various headings mentioned in the Act, and the “other matters deemed to be re-' levant,” should be stated clearly. 1 There is a wide gulf between the official and the producers’ views, and it would not be sur- ! prising to find it is caused by different opinions regarding cost movements. Over a year ago Mr Nash was confident that costs would not move much during the year. The producers were very' doubtful, and as the year passed they found that cost movements . threatened to deprive them of all benefit under the new system. ! It will be for the Minister to make it quite plain to what extent any decision with regard to farm costs has been based on the report of the Price Committee. The producers generally, it can be taken for granted, would willingly wipe out all reference to the first year’s operations provided they were afforded proof that cost movements had been taken fully into account at the’ commencement of the permanent system, and it is for the Minister to convince them that this has been done and done adequately. ;

There must now, according to law, be further adjustments. The dairy farmer supplying a butter factory is to receive .84d per lb. more for his output, and the supplier to a cheese factory 1.34 d more. That may not all be added income for wages have to be reviewed under the terms of the Agricultural Workers’ Act. The Minister of Labour when he moved the second reading of the

Bill said: “We are taking power by Order-in-Council to review it (the rate of pay) either in its present form or in some altered form, every year. There are provisions requiring that when reviewing it we must take into consideration the rise or fall in the price of the commodity.” Here is a decision that may at once take away a portion of the advance announced, so that, in the meantime, the producer should not count upon the higher returns as anything in the form of net increase. He will get the increase, less whatever further movements there may be in wages and other costs, and it may be a very small fraction, if, indeed, that. Those who have so strenuously advocated a compensated price will be bitterly disappointed. Mr Lee Martin has stated that he cannot see any difference between the compensated price and “what has been embodied in the legislation.” The Minister should be able to count confidently on the matter coming up for further discussion, and, in any case, the industry will now look to him to implement without delay his repeated assurance that the position of the producers would be improved by State action to reduce production costs.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/HPGAZ19370901.2.13

Bibliographic details

Hauraki Plains Gazette, Volume 47, Issue 2664, 1 September 1937, Page 4

Word Count
750

THE Hauraki Plains Gazette With which is incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY. Motto : Public Service. WEDNESDAY, SEPTEMBER 1, 1937 GUARANTEED PRICES. Hauraki Plains Gazette, Volume 47, Issue 2664, 1 September 1937, Page 4

THE Hauraki Plains Gazette With which is incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY. Motto : Public Service. WEDNESDAY, SEPTEMBER 1, 1937 GUARANTEED PRICES. Hauraki Plains Gazette, Volume 47, Issue 2664, 1 September 1937, Page 4