Increased Cost Allowance For Dairy Industry

Manawatu Times, Volume 70, Issue 189, 11 August 1945, Page 4

Increased Cost Allowance For Dairy Industry

TO COMPENSATE FOR WAGE INCREASES. (Per Press Association.) WELLINGTON, August 10 An increased cost allowance to the dairy industry effective from August 1 was announced today by the Minister of Marketing (Hon. B. Roberts) who recalled that when Mr. Fraser last February announced the amendment to the Wages Provisions Stabilisation Regulations he stated that the position of farmers as affected by that amendment would be considered. Mr. Roberts said a larger proportion of cost allowance to the dairy industry was being provided in accordance with the undertaking then given and was to cover the increase in dairy farm wages from £5 to £5 5s weekly. The labour award for the farm owner was increased by a corresponding amount. “The remaining portion of the allowance is paid in accordance with the Government undertaking to maintain the dairy farmer in the cost position obtaining in 1938-39 and covers the ascertained increases in costs in connection with repairs and maintenance of implements, farm buildings, shed requisites and other miscellaneous expenses that have increased over the past year. Allowance is likewise made for farm cartage which reflects the increased wages. Certain increases in factory costs such as additional transport wages of cream collection, repairs and maintenance are also provided for.” The Minister said the increase totalled 1.064 pence per lb. butterfat and was supplementary to the existing guaranteed price plus the cost allowances granted in 1943 and 1944. This increase applies to butterfat for butter manufacture, and the amount for butterfat for cheese manufacture to allow for the differences between butter and cheese factory costs will be 1.037 pence per lb. The Minister said the increases had been arrived at in agreement with .of dai)’£ industry, _