GUARANTEED PRICE

Manawatu Standard, Volume LX, Issue 229, 26 August 1940, Page 4

GUARANTEED PRICE

INCREASE REQUESTED. INDUSTRY’S CASE. \ WELLINGTON, Aug. 2G. “Because of increases in costs which Jtave occurred recently, and particularly because of tho 5 per cent, cost of living bonus. recently granted by the Arbitration Court, tho Dairy Industry Council, on behalf of dairy-farmers, is asking tho Minister of Marketing (lion. W. Nash) that t'he guaranteed price tor dairy produce be increased forthwith,” saijl the chairman of the council (Mr W. E. Hale), in a statement last night. “The Dairy Industry Council, which includes representatives of all the principal organisations connected with the dairy industry, when it met in June last gave consideration to the guaranteed price, arid pointed out to Mr. Nash that, despite increases in costs which had occurred since the present price was fixed in 1938, the council wished 'to avoid asking for any increase in the price,” added Mr Hale. “It then intimated its willingness to meet representatives of the Government and of those who would be affected by a policy which aimed at arresting rises in costs. “No reply has been received to that letter, and at its meeting last Thursday the council expressed regret that this was tho case. It agreed to a suggestion which 'had been made verbally by the Minister that there should be a. conference ;of the Government, the producers, the manufacturers, the Federation of Labour and the Civil Service, with a view to exploring tho possibility of a stay-put in wages and standardising costs, but could not agree that such a conference disposed of the question of the guaranteed price for the current season.” COUNCIL’S LETTER. '

Mr Hale said that the letter written to the Minister on behalf of the council in June read as follows: “The Dairy industry Council mot today to consider several matters relating in the industry, including the question of the guaranteed price for dairy produce. Information submitted to the council showqd that the costs in the industry have risen steadily since the price was fixed two years ago and are continuing to rise. In this connection we enumerated some increases in wages which liavo Leon given recently, and which must directly affect the cost ql the production of dairy produce: — (1) Increase of approximately 5 per cent, in tho wages of county council labourers. (2) Increase of approximately o per cent, in the wages of country lorry drivers. (3) Increase of 5 per cent, to coal miners which, though apparently covered by a subsidy, must he a charge on production. (4) Increase of approximately o per cent, in wages of waterside workers.

“In addition, applications are pending to the Court of Arbitration for an increase in the dairy. factory workers’ award, the local body drivers’ award, and a “blanket” increase for a cost ol living bonus. If the iaet that the 8 per cent., bonus awarded to the Auckland tramway workers to cover the increased cost of living is an indication of what may be expected, wo desire to point out that a similar increase in the labour reward of the dairy-far-mers as set out in your own allowance would represent an additional ,70d a lb butterfat. DAIRY FARMER’S RIGHTS. “If the policy is to grant increases to various sections of the community to cover increased costs, the dairy-far-mer in equity is entitled to be placed oil the same basis. This would mean that he would require an increase -to cover the following items: — (1) Increased costs since the present price was fixed iii 1938. \2) Additional costs which will follow as a result of recent increases in wages enumerated in this letter. (3) A comparable increase m the labour reward to meet the higher costs of living. “The council realises, however, that conditions to-day necessitate the greatest possible assistance to Great Britain, no matter what sacrifice is entailed. It would be a step in the right direction for us to sell our products to Great Britain at the lowest possible price. Additional reasons for keeping down the price are tho serious competition which lias already developed from margarine and also the fact that after the war it will he necessary for us to sell in ail impoverished market where the acceptance of a figure as low as 10d or Is a pound may have to bo faced. “The council are satisfied that dairyfarmers are willing to make every possible" effort to maintain and increase production, and to bear their full share of all sacrifices which may ho necessary. As tangible evidence of this effort, we desire, if possible, notwithstanding the increases in costs which have occurred, to avoid asking for any increase in the fixed price which we have received during the past two years. With a view to reaching this desirable objective, we further intimate our willingness to meet in conference the Government and representatives of those who must be affected hy a policy which aims at arresting rises in costs.” EQUIVALENT RISE.

Mr Hale said that the council had carried the following resolutions at its meeting on Thursday: “That the Dairy Industry Council expresses regret that no written reply has been received from the Minister of Marketing to the representations which were made to him in writing on June 18 last. It has, however, learned iroin the chairman of discussions wliich have taken place between the Minister and delegates from this council. and has considered the'Minister’s suggestion that a conference should be held between representatives of the Government, the producers, the manufacturers, the Federation of Labour, and the Public Service, with a view to exploring the possibility of securing a stay-put in wages, and standardising costs in general.” “This council desires to indicate that it is prepared to take part ill any conference which may be arranged by the Government having for its object the arrcsl?ing of the movement of rising costs in New Zealand. We, however; cannot agree that such a conference would dispose of the question of the prices which should be paid for butter and cheese for the current season. Substantial increases in the cost of production have already taken place, the latest of some being the 5 per cent, cost of living bonus recently granted by the Arbitration .Court; and we now respectfully, but definitely, ask that these increases should be covered by an equivalent increase in the guaranteed price as provided in sub-sectionS 4 of section 20 of the Primary Products Marketing Act, 1936.”