THE DAIRY PRICE

New Zealand Herald, Volume LXXV, Issue 22984, 11 March 1938, Page 11

THE DAIRY PRICE

INCREASE REQUESTED

SOUTH ISLAND PETITIONS

FARMERS' RISING COSTS

EFFECTS OF LEGISLATION

[BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday Requests for an increase in the guaranteed price for dairy products" fixed for the current season were contained in eight separate petitions which were presented in the House of Representatives to-day by Mr. J. Hargest (Opposition—Awarua). The petitions, which came from all parts of the South Island, were signed by 2394 persons. The text of the petitions, all of which were identical, sets out that the guaranteed price was fixed on the averago of prices for the 10 years immediately prior to July 31,. 1935. It isi claimed that this is unfair as many of the "years in question were depression years, when London prices were well below costs ,of production. Reply to Minister's Statement » Reference is also made to the statement by the Minister of Marketing, the Hon. W. Nash, that the dairy farmers had benefited financially by the amount of last year's deficit in the Dairy Industry Account. The petitioners point out in reply that responsible authorities have estimated that dairy farming costs rose during the 1936-37 season by 3d per lb. butter-fat, largely as a result of Government legislation. Such an increase was equivalent to £5,000,000 in a year and the petitioners claim that as a result the dairy farmers have been heavy losers. Basis of Price Criticised The factors set out in legislation for the fixing of the guaranteed price for the current season are recounted in the petitions, but it is submitted that insufficient consideration was given to the questions of farm costs, the standard of living of the farmer and the provision for the farmer of a reasonable standard of comfort. The statement is made that costs have increased considerably and that present indications point to a further increase.

The present price, according to the petitioners, does not give the producer a sufficient net return to encourage him to remain in the industry and they also claim that the dairy farmer's general standard of living cannot compare with that set up in other industries. The hourly rates fixed by the Arbitration Court of 2s 9d for skilled workers, 2s 5d to 2s rid for semi-skilled workers and 2s 4d for unskilled workers are quoted in the petitions, which also refer to the -waterside worker's wage of 2s 8d an hour. Long Hours and Low Returns All these rates, it is stated, apply to a 40-hour week, but the dairy farmer, who is at least a skilled worker and who h.as to work from 60 to 70 hours a week, receives a much lower standard of remuneration.

Unless the position is improved, the petitions continue, it is feared that dairy farmers will lose the incentive to carry on in their work. In addition to their own hours of work and the necessity of payifig increased wages for farm labour it is claimed that they are en" titled to some return on capital invested in their farms.

The request is accordingly ijiade tha'fc the current season's prices should be increased in order to give producers n sufficient net return to cover costs' and u return on capital invested, and also to maintain themselves and their families in a reasonable standard of comfort.