INCREASED PRICES

Ashburton Guardian, Volume 66, Issue 250, 3 August 1946, Page 6

INCREASED PRICES

WHAT BRITAIN WILL PAY DAIRY PRODUCE AGREEMENTS (Special Correspondent N.Z.P.A.) (Rec. 12.40 p.m.) LONDON, Aug. 2. The British Government may be said to be paying twice over for the increased prices she has agreed to give New r Zealand and Denmark for their dairy produce, meat and other foodstuffs. This will als apply to agreements still to be reached and ratified with Australia, the Argentine and Eire. In addition to paying increased prices to these countries, she will also pay higher subsidies to keep retail prices level in Britain. This is clear from the reply by Mr John Strachey to a questioner in the House of Commons, who inquired if the new agreement with Denmark would mean additional subsidies. The import of all products in which there is any increase in price must have that implication so long as consumer prices are to he kept stable, said Mr Strachey. Food subsidies paid by the British Government have been rising ever since they started in 1939-40. Even before the new agreements were mooted, Dr. Dalton estimated that would cost Britain £334,000,000 for the .current year ending next April, which is 50 per cent more than two years ago. With the new agreements in force, subsidies may go up to the £350,000,000 mark. Prices to be paid by Britain for Danish butter, bacon and eggs under the new three-year agreement outlined in the House of Commons by Mr Strachey will be'made known next week, it is expected. They will be announced to the Danish Parliament, which will also he asked to approve of the payment of subsidies to Danish farmers totalling nearly £10,000,000 sterling a year.

Mr Strachey announced that Britain Avould pay the minimum guaranteed prices. On butter the price has been fixed to September 30, 1947, and the Danes would consult Britain before committing hemselves to sending more than specified quantities to other marduring 1948-49.

“The prices we shall pay the Danes for foodstuffs during the first year,” he said, “are higher than the prices we are paying for similar commodities from other countries, because farm costs in Denmark to-day are extremely high in relation to costs elsewhere, due to the world, shortage of animal feeding stuffs on which Danish agriculture so largely depends. This situation, we hope, will prove to be shortlived. We have to ask for tolerance and understanding, for example, from our Dominion suppliers, whom we kept, informed fully of our negotiations with Denmark.”