FACTS RECOGNISED

Otago Daily Times, Issue 26581, 2 October 1947, Page 6

FACTS RECOGNISED

DAIRY FARM WORK COMPENSATORY PAYMENT WAY CLEARED FOR MAXIMUM PRODUCTION P.A. WELLINGTON. Oct. 1. One of the most satisfactory features about the increased price to dairy farmers was the tangible recognition of the fact that workers on dairy farms were entitled to special payments for work done at week-ends and on public holidays similar to those enjoyed by workers in other industries. This statement was made by Mr A. J. Sinclair, secretary-manager of Te Awamutu Dairy Company and a member of the Dairy Industry Council. In an interview. Mr Sinclair said that with a reasonably satisfactory adjustment on the question of price the dairy farmer was now free to concentrate his whole efforts on increased production for the United Kingdom The new season had opened up well, and with favourable climatic conditions there' was a good prospect of a substantial increase in exports oi butter and cheese. New Price Carefully Assessed Mr Sinclair added that in the interests of the people of Britain the appeal for maximum production could now be made confidently to the dairy farmers of New Zealand. He said the increased price to dairy farmers had been carefully assessed by the Dairy Products Marketing Commission. “It represents,” he said, “ 16s 6d a week as from November 1, 1946. In addition, there is a further increase in wages of 5s weekly as from August 1, 1947, so •it dairy farm wages have gone up from £5 10s 9d to £6 11s 6d. “Before making adjustments with their employees, however,” said Mr Sinclair, “dairy farmers may consider it desirable to await the gazetting of the regulations, especially as a decision has still to be made on the industry’s request that the existing scale of £l weekly for board and lodging should be reviewed. Where dairy farmers have already been paying in excess of £5 10s weekly they will be entitled to take this into consideration in making adjustments with their employees. “The statement by the commisson," Mr Sinclair said, “ does not specifically mention a total increase of 4.232 c per lb butter-fat. In the guaranteed price formula the basic payment per lb butter-fat of an average efficient buttei factory is set out for 1946-47 at 21.675'd, and this now becomes 25.907 d. The increases are made up as follows; Retrospective payment of 16s 6d weekly as from November 1, 1946, 1.716 d; increased labour reward of 5s weekly as from August 1, 1947, 0.52 d; additional farm costs allowance covering cost of removal of subsidies on fertilisers, etc. 1.996 d 4.232 d. Included in the new prices to be paid to dairy companies this season there are allowances for Increased factory costs ol 0.422 d per lb butter-fat for butter and 0.835 d per lb butter-fat for cheese. "After assisting in the negotiations between the industry and the commission,” Mr Sinclair went on, “I should like to emphasise the marked change this season in the whole approach to the somewhat contentious subject of increased costs. When we appeared before the commission there was no lack of questioning by members, but ii would have been impossible for an outsider to tell who were the Government and industry representatives respectively. Fertiliser Prices “Dairy farmers are warned not to be too optimistic about the increased price for 1947-48,” he said. “When they receive their fertiliser accounts, for instance, they will realise just why a considerable portion of this increase has been necessary, but on the other Hand few dairy farmers will have any legitimate excuse for curtailing fertiliser orders. “For the first time a fair and reasonable coverage has been given to the average efficient dairy farmer for interest on his capital investment costs of maintenance and labour reward, provided there is no insistence that these should be calculated on the basis of a 40-hour week. The retrospective payment will be drawn from the industry’s stabilisation account, bul this should still show a credit balance not far short of £7,000,000. “So far as the new prices for the current season are concerned," Mr Sinclair concluded, “ there may be certain factors which make it undesirable to press for finality in the negotiations with the United Kingdom at this stage, but dairy farmers car, reasonably anticipate that the price to be paid by the United Kingdom will cover the payments made to them for butterfat and may possibly leave some balance to be added to the stabilisation account.”