DAIRY INDUSTRY

Timaru Herald, Volume CLVI, Issue 22991, 7 September 1944, Page 4

DAIRY INDUSTRY

Wages And Costs Adjustments Made

(N.Z.P.A.) WELLINGTON, Sep’. 6. In the House to-night, the Prime Minister, the Rt. Hon. P. Fraser, announced that an agreement between the Government and the Dairy Board regarding dairy produce for the coming season had been reached. Discussions had taken place between representatives of the Government and the industry on the resolutions carried at the dairy conference on August 3. A complete and satisfactory settlement had been reached with the industry, and the terms of settlement were:— ’ (1) That the minimum wages of adult male dairy farm workers be increased to £5 a week. (2) That to provide for this increase and to give a standard allowance of £5/10/- to working farmers, the labour reward in the guaranteed price formula be increased by a wage cost allowance of 1.47 d per lb of butterfat. (3) That the farm cost allowance be increased by ,65d per lb of butterfat to cover sundry increases since the last review, the higher costs of the replacement of unstabilised requisites and of farm implements required for the picking up of arrears of maintenance and assistance in the rearing of additional calves, all of which were necessary in the drive for increased production.

These adjustments were to be paid in respect of butterfat in milk and cream supplied to dairy factories for manufacture into butter and cheese for the 1944-45 season, commencing on August 1. In arriving at the allowances, consideration was given to the question of paying a subsidy on the extra calves to be reared, but because of the manpower situation and administrative difficulties, it was decided to follow the resolution of the Dominion Dairy Conference and pay the added price per lb of butterfat for herd replacements. Members of the Dairy Industry Cost Adjustment Committee and the New Zealand Dairy Board accepted this basis and pledged full support to the Government in co-operating with and assisting dairy farmers to save as many calves as possible to overcome the present serious shortage. This was not only an individual responsibility but a national responsibility. The allowances would be charged against the Dairy Industry Stabilisation Account, to which would be credited the increase in payments for butter and cheese by the United Kingdom Ministry of Food, being all amounts since December 15, 1942, in excess of 117/- per cwt for butter, and 73/- per cwt for cheese. Government Gratified

The settlement was a matter of gratification to the Government, Mr Fraser added. It was also most timely, because with the great Allied successes in Europe additional food would be required not only for Britain but also for the liberated countries of Europe. The near approach to victory did not allow New Zealanders to relax their effort but rather that emphasis should be directed toward production, whether primary or industrial. There were one or two points yet to be cleared up. All amounts over and above those in the settlement would be paid into the Stabilisation Account, and the question of crediting to the various industries would be a matter for adjustment. What had been obtained for the Nation—£l2,ooo.ooo and £4.000.000 annually—would be retained for the Nation. Mr Fraser said that some reserves must be maintained for future needs if the country were not to sink into bankruptcy. Sterling funds must be maintained for post-war purposes. There might be other sections of the community requiring adjustments, added Mr Fraser, but stabilisation was the agreed policy of the country and the Government stood by it. Members of the House, particularly young members, should weigh their words when they made statements reflecting on the country's economic stability. It had been alleged that New Zealand had defaulted. “New Zealand has never defaulted and never will default as long as there is a belt which can be tightened up another hole.” declared Mr Fraser, “but that belt will be tightened if the need arises round the waist of the whole community, not merely the poorer members of it." Mr W. S. Goosman (National. Waikato) interjected to protest that Mr Fraser had been speaking for an hour and 50 minutes, which he claimed was a monopoly on the air and an abuse of his extension of time.

Mr Fraser said he was dealing with an important matter, namely, the credit of New Zealand. If the honourable member could not understand that he could exercise his privilege of walking out. If he could not understand it his place was outside the House. Mi- Broadfoot's Accusation Mr W. J. Broadfoot (National. Waitomo) said it was extraordinary that this Dominion was the only one which had sought an agreement such as had been concluded with Britain. The other Dominions had paid the same prices for British products which we had paid. The fact was that the Government had raided the farmers' till. If the primary producers were impoverished there would be repercussions on every person in the country. Tire unjust treatment meted out to primary producers since the present Government t-iok office had done more to unify farmers than anything previously. After the war primary producers would demand the restoration of the rights taken from them. The Government had consistently and deliberately underpaid primary producers for their sterling funds which it had taken from them.