PLAN CRITICISED

Hauraki Plains Gazette, Volume 53, Issue 32417, 12 April 1944, Page 5

PLAN CRITICISED

INCREASE IN PRODUCTION LOCAL FARMER’S OPINION CONTRAST OF RATE PER HOUR Criticism of the Government plan, announced last week, to assist in increased production of dairy produce is contained in the following letter to the Hauraki Plains Gazette from Mr W. H. Cheale, of Netherton. “At last we have a statement by Mr Fraser of the increased price to be paid to the dairy farmer to help him to produce more butter and cheese for England. I want to study that price and see how it will help the two-unit farm producing 12,0001 b. of butterfat,” writes Mr Cheale. “First, Mr Fraser said it will give a return of £4 17s 6d to the worker and will bring the farmer’s return up to £5 7s 6d per week. Now a farmer and his employee will work on an average of not less than 60 hours per week so Mr Fraser is of the opinion that something than 2s per hour is all they are entitled to. Well, what a contrast to the price paid per hour to the person who puts that produce on to the boat. Farmers’ Small Share The increase in price to be paid per lb. butterfat, 1.21 d, works out at 12,000 lb. butterfat, £6o’ lOs. Now the employee gets £52 of this as his share, leaving the farmer £8 10s less tax £1 14s, a net return of £6 16s as his share of the increase in price of butterfat.

There is also to be paid a subsidy on heifer calves of £1 per head on all reared over five, payment to be twofifths from bobby calf pool or 8s and three-fifths by the Government, which will be 12s. Now the farmer is only getting 12s but he will pay tax on £1 which will be 6s 6d so he will only receive from the Government the sum of 5s 6d per calf. Now from May 1 there is to be an increase of «d per lb. on all pig meat. How does that work out on a 1601 b. pig? He will receive the large sum of 6s 8d or with tax deducted 4s 6d. Detrimental To New Zealand It appears to me that the paying of low prices for primary produce is detrimental not only to the primary producer but to New Zealand as a whole. To make my point let me illustrate it this way. In Australia the price paid for a 2001 b. baconer at 9d per lb. is £7 10s. Now on a lend-lease deal Australia takes £750-0' worth of goods from U.S.A, who in payment receive 1000- bacon pigs at £7 10s each or a total of £7500’ which leaves the account balanced. New Zealand also receives £7500i worth of goods from the U.S.A, on the lend-lease deal and gives in return 1000 1 bacon pigs each of 200- lb. weight. The producer of the pigs only receives 6d per lb. for pigs of this weight or a total of £4166 13s 4d so New Zealand has a debit account against them of £33'33 6s Bd. This means that not only has the producer received £3333 6s 8d less than the producer in Australia but New Zealand has incurred a debt of £3333 6s Bd. Subsidy Not Approved Mr Fraser said there would also be a subsidy of £5 per acre for approved pig feed crops. I personally do not agree with subsidies. I believe that it is better to pay a price that will do away with the need for subsidies,” concludes Mr Cheale.