MIXED RECEPTION

New Zealand Herald, Volume LXXIV, Issue 22820, 30 August 1937, Page 11

MIXED RECEPTION

OPINION IN INDUSTRY return for services " TOTALLY INADEQUATE " STATEMENT BY MR. PARLANE Opinions of leading men in the Auckland dairy industry, collected at the weekend by long-distance < telephone, that the new season's guaranteed price is regarded with varying degrees of, approval and disapproval, apparently determined to a largo extent by the particular class of dairy farmer that the indin'dual has in mind. One man who admitted the difficulty of forming an exact judgment summed it up with tho remark:" " Tho same price might mean prosperity to one farmer and starvation to another." Other considerations indicated were increased costs, the return in comparison with that received in other occupations, and the employment of family labour. It was clear {hat advocates of a "compensatory price" regarded tho new figure as insufficient.

"If it is the indention of the Government that dairy farmers shall receive payment for their services commensurate with that received by other sections of the community for equal services, the price is totally inadequate," said Mr. C. J. Parlane, general manager of the New Zealand Cooperative Dairy Company, Limited. ".The Government claimed that tho last price was in accordance with their election promises. As no such promises are attached to this season's price, the farmers have every reason to feel disappointed."

INEQUALITY REMAINS OPINION OF FRANKLIN M.P. DISAPPOINTMENT FOR FARMERS " Great disappointment will be felt by dairy farmers throughout the Dominion at the inadequate nature of the guaranteed price," said Mr. A. C. A. Sexton, M.P. for Franklin. " The price is far too low to put dairy-farming on equality with other industries and will not satisfy the overwhelming majority of farmers. " It will undoubtedly strengthen the demand for a compensatory price, and it is clear that the guaranteed price as announced does not fulfil the principles of the' Compensatory price, namely, that the price should enable competitive rates of wages to be paid, give a reasonable return on capital, enable increasing costs to be met and give the farmer a remuneration equivalent to what is being earned in other walks of life, and a return commensurate with' the value of the services rendered by him to the community." ESTIMATED PAY-OUT .THE EFFICIENT FACTORY EMPLOYMENT OF FAMILIES The opinion that the average efficient dairy factory in the Waikato should be able to better the Minister's estimated payout of 13.88 d per lb. butter-fat was expressed by a dairying authority. This man said he understood that the Government had ,used in its calculations the same formula as a year ago, placing the all-in f.o.b. cost at 2525 d a pound and the over-run at 21.75 per cent. On last season's basic price of 13.562 d, the average efficient factory was estimated to pay out 13.04 d. Actually most of the Waikato factories made an average advance payment of 13Jd because their all-in cost did not exceed 2d and most of them had an orer-run slightly higher than that for which the formula provided. It might be assumed that efficient factories in the coming season_ would be able to pay out about 14Jd in place of 13.88 d. „. , ~ i . If costs remained fairly static during the season, said this authority, the average farmer should be able to cj* rr y on and pay reasonable wages. Much had been said about the employment of farmers' families in the milking sheds, but it was safe to say that " the guaranteed price were as high as Is 4d some men would be obliged to do so. Some others preferred to use their families rather than employ outside labour.