DAIRYING COSTS

Waikato Independent, Volume XXXVII, Issue 3268, 18 February 1937, Page 7

DAIRYING COSTS

GUARANTEED PRICES

PROTECTION OF FARMERS’ INTERESTS

A statement in reply to newspaper criticism of the guaranteed prices fixed by the Government for butter and cheese during the current season has beqn issued at Wellington by the acting Minister of Marketing, Hon. W. Lee Martin.

“The great majority of dairy farmers are too well informed to be misled by the editorial comment on dairy costs and guaranteed prices in The Dominion newspaper of February ,” said the Minister. “Dairy farmers know that before the guaranteed prices for the current season were fixed, very full enquiries were made in regard to butterfat prices and costs, and allowance was made for ail increase in farm and factory costs. I

At the outset it was recognised vthat the requisite data relating to &:eosts was not available, and the Government resolved to initiate the guaranteed price plan by paying prices based on the average for the past eight to 10 years. This was the pre-election promise made by the Prime Minister on behalf of the present Government, and it can be demonstrated that the promise was fulfilled.

“I believe,” continued Mr Lee Martin, “that when the dairy season closes it will be found that cost increases are not nearly as great as some critics would have us believe. The comparison made by critics of the Government, between workers’ awards made by the Arbitration Court and guaranteed prices for dairy farmers is quite apt because the Government not only resolved to improve the conditions of workers generally, but also resolved by means of guaranteed prices for dairy produce to confer equal benefits on tb dairy farmers.”

Statutory Formula

“What could be fairer than the formula provided in the Primary Products Marketing Act for the determination of a fair reward to dairy farmers for their labours? jfi-The Primary Products Marketing Act provides that in the fixation of next season’s guaranteed prices, regard shall be had to the following considerations: 1. The necessity jn the public interest of maintaining the stability and efficiency of the dairy industry. 2. The costs involved in the efficient production of dairy produce. 3. The general standard of living of persons engaged in the dairy in-r dustry in comparison with the geni eral standard of living throughout IjfcNew Zealand. 4. The estimated cost to the Department of marketing the dairy produce concerned, and also the cost of the general administration of the Act. 5. Any other matters deemed to be relevant. “Due regard having been paid to these matters, the prices fixed shall be such that any efficient producer engaged in the dairy industry under usual conditions and in normal circumstances should be assured of a sufficient net return from his business to enable him to maintain himself and his family in a reasonable state of comfort.

Protection of Farmers

“From the foregoing it will be seen that dairy farmers’ interests are protected in the Primary Pro- - ducts Marketing Act, just as surely as workers’ interests are protected through awards of the Arbitration Court,” the Minister added. “Before the departure of the Minister of Marketing, Hon. W. Nash for England, the Government set up a committee on which are direct representatives of the dairy farmers and . the dairy factory companies, to advise Cabinet in regard to the fixation of next season’s guaranteed prices. This committee will give full consideration to the factors menioned, and already information schedules have been sent to dairy farmers and to dairy companies so that the necessary data respecting farming and factory costs will be available to the committee. “Having regard to the fact that the guaranteed price plan was only inaugurated on April 1 last, I consider the Government can claim that it has made an honest .attempt, through the guaranteed price plan and the Mortgagors Rehabilitation Act, to improve the conditions of the dairy farmers and to implement its pre-election promises. In this regard, I have noticed a Press report of the statement of a .prominent Waikato farmer and dairy company official that ‘on past costs, the figure was a magnificent one.’ “I have already stated that I consider the cost increases will not be fffis great as expected in some quar- ■ ters. It is the earnest desire of the Government, through its guaranteed

price plan, to remove as far as possible the disabilities under which the dairy farmers have worked. I believe this can be done under the price fixation formula which is laid down in the Primary Products Marketing Act. The Government is well aware of the fact that the continuation of the plan in the interests of the dairy farmers depends on the fixation of guaranteed prices at managable levels,” concluded the Minister.