INTERVIEW WITH MINISTER

Southland Times, Issue 23308, 18 September 1937, Page 12

INTERVIEW WITH MINISTER

DELEGATES’ REPORT RESULT OF DISCUSSION Verbal reports on their interviews with the Minister of Marketing (the Hon. W. Nash) were given at the mass meeting of representatives of the dairy industry yesterday by the Southland members of the delegation which waited on the Minister on September 10 to discuss the guaranteed price. The official report, which was not read at the meeting, is as follows:— “Mr G. R. Herron, in stating the case for the southern cheese factories, pointed out that in the coming season it was inevitable that there would be

increased costs which might have the effect of closing down a further number of small cheese factories. The case for the smaller factories was put forward by Mr T. F. Paul, who drew attention to the fact that in some cases the employees on a dairy farm received almost as much in wages as did the farmer himself.

“ITie various points brought forward in the arguments of the different speakers were summed up by Mr Rutledge, who asked the Minister for justice for the farmer—a justice that would make comparable the standards of the farmer with those of the rest of the community. Mr Nash, in his reply, stated that the averages over the whole Dominion had been taken into account. The Minister was satisfied that the pay-outs for the season 1937-38 would be satisfactory to efficient factories and farmers. RESPONSIBILITY ACCEPTED “As a result of the discussion ■with the Minister the following points emerged:— (1) The Government would not release the reports of the investigation committee. However, the Government accepted full responsibility for the price fixed, and would release a statement showing how the price was made up, giving particulars of each item. (2) The Minister admitted that the cheese producers had not received the differential originally estimated, and consideration would be given as to what should be done, but at the same time Mr Nash made no specific promise that there would be a further payment that could be handed on to suppliers. (3) The costs for cheese manufacture were estimated for 1936-37 at 2.75 d a lb of butterfat, but the average for the Dominion worked out at 3.25 d, and that is the amount allowed for in the present season. It would appear then that there is no allowance made for increasing factory costs for this season, and if costs do increase payment for these increases must come out of the farmers’ share. (4) Living expenses for the farmer have been allowed for at the rate of £4 a week, plus an estimate of £1 10/- for house and food grown on the farm, a weekly total of £5 10/-. We suggest that this figure be compared with the rates of pay in unskilled and skilled industries on the 40 or 44-hour week. We would draw attention to the following facts:—(a), Yearly pay for dairy farmer, £2OB, plus house, etc.; (b), yearly pay for manager of a 100-ton cheese factory, £273, plus house, etc.; (c), yearly pay for manager of a 400-ton cheese factory, £438, plus house, etc. According to the recent decision of the Arbitration Court skilled workers are to be paid at the rate of 2/9 an hour. If a .dairy farmer were to be paid at this rate, then for only 60 hours a week, without any overtime rate, the farmer would get £8 5/- a week. (5) Although the price is fixed for the season, costs are not fixed. Therefore, any increase in costs, whether on the farm or in the factory, must come out of the farmers’ share. (6) It is almost certain that if costs are fixed on Dominion averages then the South Island must be penalized. The following important factors have to be borne in mind: —(a) The grass season is shorter, and so is the production season; (b) part of the farm is taken up with growing winter feed; (c) the average production of butterfat an acre must be lower than in the North Island. A copy of the (report has been forwarded to all provincial secretaries of the Farmers’ Union.