DAIRY INDUSTRY

Ashburton Guardian, Volume 61, Issue 246, 30 July 1941, Page 7

DAIRY INDUSTRY

COST OF THE CHANGE TO CHEESE BRITAIN MAY PAY MORE. (P.A.) WELLINGTON, July 29. The Price paid by the British Government to Now Zealand and Australia for choose manufactured in those countries was raised in the House of Representatives to-day in an urgent question by Air C. A. Wilkinson (Independent, Egmont) to the Alinistor of Marketing (the'Hon. J: G. Barclay)

Air Wilkinson asked if the New Zealand Government was awar'e that a statement had been made by a member of the Australian Dairy Board to the effect that ho could advise the industry that its was confidently anticipated that the British Government would grant an increase in the price of cheese to Australia of 5s 9d per cwt. Ah’ Wilkinson also asked, in the event of the extra, price being paid to New Zealand, how the Government proposed to deal with it in the way of distribution to farmers.

The Minister, in reply, said no official announcement had yet been made by tho Australian Government in the matter. The negotiations between Britain and New Zealand were not yet completed, but. if such an increase was given to Australia the New Zealand Government was confident that a similar increase would be given to New Zealand. The Alinister said that any such increase would he granted *by the Ministry of Food solely as a recognition for the increased quantities of cheese. New Zealand’s liabilities in this direction to date were approximately £1,000.000, and covered the following items: Grant to individual suppliers making the'change-over from butter to cheese £BO,OOO, cost of purchase of whey butter which could be sold to Britain £450,000, subsidy for cheese* crates £35,000, provision of plant and equipment for pheese factories £200,000, and compensation for butter and cheese factories for increased costs due to tho change-over £125,000 The Minister added that if an extra 5/9 per cwt was paid by Britain it would barely cover the liabilities he had indicated. As soon as the negotiations were 'completed a public announcement would he made, arid if any increase was given it would be considered in relation to the whole question of the change-over from butter to- cheese and tho additional costs in this connection.