BUTTER SALES.

Auckland Star, Volume LXIX, Issue 114, 17 May 1938, Page 9

BUTTER SALES.

GUARANTEED PRICE.

STATE DAIRY ACCOUNT.

SURPLUS OF £530,600.

(By Telegraph.—Own Correspondent.)

WELLINGTON, this day.

The announcement that at Thursday last there was a surplus of £530,083 in the Dairy Industry Account, and that he hoped to tell the National Dairy Conference next month what the Government proposed to do with the money, was made by the Minister of Finance, the Hon. W. Nash, in his address at Lower Hutt last night. Discussing what the" Government had aclneved in the field of regulated marketing, Mr. Nash asked the dairy farmer to think back over the last seven or eight years, during the course of winch he had received as little as 9d for his butter and 9.W1 for cheese. In 1934 the Dairy Commission had stated that one-half of the dairy farmers could not meet their liabilities. Between 1924 and 1934 the output was more than doubled, but the return to the farmers was less for the double quantity. "Compare this with the position to-day," said Mr. Nash, "when the farmers are assured of an average butter-fat return of 13.08(1 a pound and cheese suppliers of a return of 15.18 d a pound."

Dealing with Deficit. Mr. Nash said that the £300,000 deficit in the Dairy Industry Account for the first year would be transferred to a special account and would not remain a charge against the Dairy Industry Account.

For the present season the balances in the Dairy Industry Account at Thursday last amounted to £491,906 for butter and £38717 for cheese. These siims had been realised over and above the price paid to the producers. The Government Avas not out to make a profit out of the dairy industry. It was not keen to get the account cleared out at once, but when the National Dairy Conference met at New Plymouth next month he hoped to be able to sav what the Government proposed to do ■with the funds in hanff.

In summing up, Mr. Nash stated that the farmer was better off to-day as a result of the guaranteed prices, the mortgage adjustment procedure, low interest rates and low prices of fertilisers. It was realised that rural housing conditions were not as good as they should be, but the Government's policy to overcome this difficulty would be announced sliortlv.

A passing reference was made to the compensatory price. Mr. Nash stated that he had accepted the invitation t > debate the respective merits of the guaranteed price and compensated price at Hamilton, but the compensated price advocate had refused to state the case for his proposal and the occasion had been used merely to decry the Government.