BIG LIABILITY.

Auckland Star, Volume LXIX, Issue 128, 2 June 1938, Page 8

BIG LIABILITY.

THE APPLE SUBSIDY.

GROWERS APPREHENSIVE.

GOVERNMENT'S INTENTIONS. (By Telegraph.—Own Correspondent.) CHRISTCHURCH, this day. Increasing apprehension ie being felt among Dominion apple growers concerning the possibility of the CSovcruinont failing to pay a subsidy on all fruit marketed and sold.

Last year this subsidy cost the Government £40.000, but sales made this season indicate that the amount required to net r>/2 a ease to the grower will probably j exceed £ 150,000.

Inquiries in Christehurch reveal that the growers are swamping the markets with apples as a. result of the bumper harvest, knowing that they are guaranteed a payable price from the Government irrespective of market values.

The subsidy is paid on all grades of apples, that come within the scope of the Government's compulsory grading scheme. This provides for four grade*— extra fancy, fancy, commercial A and commercial B. Other grades are not recognised.

When it is realised, however, that the estimated yield of apples for the markets in New Zealand is about 1,500.000 cases and that the net price to the grower is likely to be about 2/ to 4/. it is at once apparent that the subsidy figure will be near the estimated £150,000.

System of Pay-out. The system of pay-out instituted by the Government requires all growers to record their total sales of graded apples and send them to the Department of Internal Marketing at the end of the season. From the list of sales the Department estimates the average net price received by growers on all graded fruit, and the difference between that figure and 5/2 is the amount of subsidy for which the Government is liable.

Nelson growers supplying fruit to the Christchurch markets are particularly concerned about the position, although they have received an assurance from the Minister of Labour, the Hon. H. T. Armstrong, that the Government would give them the same protection ae last year in order to meet the increased labour costs incurred under orchard workers' awards.

Relying on Government. Large quantities of Nelson apples have been sent to Christchurch, but by the time the freight and auctioneer's commission are paid the growers are receiving very little from the sales.

Canterbury growers on the other hand are inclined to be jubilant. They are not involved in freight charges, and the lower the net return to the Nelson growers the higher will be Canterbury's share in the pay-out. It was pointed out this morning that while the public are enjoying the benefits of cheap apples they will have to pay a reasonable price indirectly. "The day of reckoning is expected some time in October," said one grower, "but it is being whispered that the Government will delay a definite announcement regarding the amount of the payout until after the elections."