EXTRA COSTS

Otago Daily Times, Issue 24716, 19 September 1941, Page 6

EXTRA COSTS

VIEWS OF DAIRY INDUSTRY

PROPOSED COMMITTEE DISSATISFACTION EXPRESSED (P.A.) WELLINGTON, Sept, 18. The suggestion by the Minister of Marketing. Mr J. G.' Barclay, that certain problems facing the dairy industry should be placed before a special committee, of which the would be the chairman and which would include two members of the industry, caused a long discussion at the Dairy Board Conference to-day. The conference debated points raised by the Minister in his address and went on to deal with remits. “I think that it might have been possible for Mr Barclay to give us something just a bit more definite about the way in which we can compensate the cheese producers for some of their extra costs and to leave a little less of the burden to be carried by the proposed committee,” said the chairman, Mr W. E. Hale. “ The industry's representatives on that committee will have a pretty solid task.” Government First Referring to the costs which it was proposed to place against the extra payment of 5s 9d sterling per cwt, Mr Hale said it was unfortunate that first on the Minister’s list were capital costs incurred by the Government and, in particular, the cost of providing emergency cool storage. Remembering that cheese was to be given absolute priority of shipment, it would seem most unlikely that emergency storage would be required for cheese other than to a very limited extent. As for the special committee to which the Dairy Board was asked to appoint two members. it was going to be a tough job to place on the shoulders of any two men. It was really for the conference to decide whether it would accept the suggestion. Mr T. E. Blyde said that the committee should be enlarged to include at least three dairy representatives. Mr W. Marshall said he objected, to the remits before the conference being referred to a committee where the dairy industry, with only two members, would be out-voted. Remits Adopted The following remits were adopted: “That this conference approves the principle of payment for produce under wav conditions at a fixed time after being put into store; this time to be such that it will not., involve tne industry in any greater average charges for interest and storage than have had to be borne during the last two years. “ Because the dairy industry is being asked to work on the same price for the fourth season in succession in spite of increased costs, the Government should be requested to accept the responsibility for war risk insurance on all dairy produce while held in the cool stores.” “ That in view of the difficulties associated with working night shifts in cheese factories, and the fact that the same price is obtained for cheese grading 91 points as is received for cheese scoring 92i points, the Government be requested during the period when it is necessary to work night shifts to pay a standard guaranteed price for all cheese grading 91 points and upward to 92i points.” “ That one half-penny per lb butterfat be paid on all supply delivered by suppliers twice daily, and also that all suppliers who have changed over to cheese since June 1, 1940, and are using a cartage service, be rubsidised to an extent not exceeding one half-penny per lb butter-fat for cartage costs in excess of one half-penny per lb.” “ That to meet cases where a supplier considers that he is suffering real financial hardship through changing over to cheese for the war emergency period, he should have the right of appeal to an authority who would have the power to make an appropriate monetary grant.” “That where butter manufacturing costs arc increased because of the loss of supply to cheese, the Government be asked to make reasonable compensation for such loss.”