DAIRY FINANCE.

Auckland Star, Volume LXVI, Issue 174, 25 July 1935, Page 10

DAIRY FINANCE.

GOVERNMENT ASSISTANCE.

LC \.\\S FOR IMPROVEMENTS. (Hy Telegraph.—Own Correspondent.) HAS LTOX, Wednesday. At a mec* ! "g of the executive of the •South Auckland Dairy Association today a letter was receive*? from the acting-Minister of Finance, Mr. Hamilton, giving further partie m liir* of the Government's scheme to provide financial assistance for dairy farmers needing it for dairy eked improvements by ad ministering and guaranteeing loan ad ances, and by collecting instalments of the sums lent. Since the previous circular was issued it h_ 1 been decided to modify the eondi'io.s under which advances would be made to companies who were prepared to linance their farmer suppliers.

The .Minister st ted that the Government would be prepared to :.tak>- funds available to dairy companies for approved work on the farm, and would take security either direct fro .1 the companies by mea < jf a "rs or second debenture, or if this was not considered desirable, security would be taken from the farmer either in the form of a promieeory note endorsed by the companies or in some other form embodying a guarantee of repayment by the company. Any advances made in either of these ways would carry interest at 4 per cent, but the Government would pay to the companies an amount equal to * per cent per annum on the aggregate amount of loans outstanding at the end of each half-yearly period. This would be equivalent to a payment of i per cent as administration expenses incurred by companies in -educting loan chargee| from the dairy cheques of suppliers. The Vinister appealed t members of the association for their co-operation in the desire to improve the quality of dairy produce. In the course of discussion the view was unanimously expressed that it was unfair to esk the dairj companies to guarantee*such loans, and that the responsibility should be . ssunied by the Government. A resoluti.n ,0 this effect was carried.