Dairy Costs Allowance

Wanganui Chronicle, 5 October 1946, Page 5

Dairy Costs Allowance

GOVERNMENT GRANTS 1.28 - NCREASE

THE CURRENT SEASON (P.A.) Parliament. Bldgs., Oct. 4 An increase of 1.281 d per lb. on butterfat in farm cost, allowance, payable to dairy farmers fcr the 1946-47 season, was announced tonight by the Minister of Marketing, Mr. Roberts.

The Minister said the Dairy Costs Adjustment Committee, comprising representatives of the dairy industry and the Government, had a number of meetings and examined the movement in costs of production since the cost allowances were reviewed at the commencement of the 1945-46 season. It was found, however, that an agreement could not be reached by the committee on additional cost allowances to be paid for this year by the committee, and the question, therefore, was referred to the Government for decision. The Minister said the following additional costs allowances would be paid for the season, commencing on August 1 last:— Farm working and maintenance costs .. ... „ ,4d Depreciation on buildings, plant and equipment 361 d Increase in labour reward at 5s weekly ...... ...... .._ .52d Total 1.281 d z The increase in the labour reward of 5s weekly arose from the fixing by Statute of a minimum wage at £5 5s weekly. This minimum applied to the sheep-farming industry, and workers in the dairy industry normally receive a margin of 5s weekly above the rates for sheep farms. The Minister said the examination of cost movements did not disclose any need to increase the existing factory costs allowances. However, if costs should be increased during the current season as a result of wage negotiations now in progress, the Government would be- prepared to agree to such further factory cost allowances as might be necessary to offset the additional costs incurred.

The Government regretted that full agreement on these questions was not reached by the Dairy Costs Adjustment Committee, said the Minister. The increased allowances now decided upon were justified on a careful investigation of dairy costs, and their payment would ensure that the relative position of the dairy farmer in the community was maintained. The full proceeds of the increased price received from the United Kingdom Government, by virtue of the recent contract revisions, would be credited to the Dairy Industry Stabilisation Account. The balance in the account, after debits had been made for the items agreed upon between the Government and the joint committee of the industry representatives —covering farm and factory cost allowances, and susidies for such items as fertilisers—would be preserved intact for the benefit of the industry, in accordance with the letter and spirit of the stabilisation agreement with the Farmers’ Federation.