SCHOOL MILK

Nelson Evening Mail, Volume 80, 30 July 1945, Page 3

SCHOOL MILK

BASIS OF PAYMENT ANNOUNCEMENT BY MINISTER Wellington, July 27. “The question of the payment to the industry for school milk is one matter outstanding this year,” said the Minister of Marketing, Mr Roberts, addressing a conference of milk producers. "The principle of payment for milk supplied for schools on a 365-day basis is confirmed,” he added. It was proposed that claims from the various producer organisations shall be dealt v/ith in the 'following manner in the North Island: “(1) Aproved producer Organisations in the North Island will be invited to establish claims on the assumption that they were prepared as from September 1, 1944, to August 31, 1945, to guarantee a 365-day supply of' milk to schools. “(2) The realisation value to approved organisations of surplus milk on week-ends and school holidays will be fixed at 10.125 d a gallon at the farm gate,’ in all areas where the producer organisation could reasonably divert smuch surplus milk for cheese or dried milk manufacture. In areas where diversion to cheese or dried milk factories is not possible, the realisation value of 9.725 d will be accepted. “(3) The basis of compensation shall be the difference between these realisation prices and the full seasonal differentials as established under the National Milk Scheme this yehr. “(4) The Government accepts the responsibility of paying this compensation on the monthly claims submitted by each producer organisation in accordance with the formula which can be finalised with representatives of the Milk Marketing Division. “(5) On the industry’s part, each producer organisation is required to accept a penalty of 2d a gallon for each short-supplied on-any school day, with the proviso that over the 12 months’ period, the total amount of the penalties paid or payable by the organisation shall not exceed the total amount of compensation payable by the Government. "The same provisions are to apply in respect of approved producer organisations in the South Island, with the exception that the realisation value shall be fixed at 8.75 d a gallon ‘at the farm gate’ in all areas where the producer organisation can divert for cheese manufacture, and 8.25 d a gallon in all areas where diversion to cheese factories is not possible. In consultation with your executive suitable forms will be prepared by the Milk Marketing Division, so that applications for compensation under tfiis formula can now be presented without delay by producers’ organisations.”