REPLY BY CHAIRMAN OF DAIRY BOARD

Press, Volume LXXXII, Issue 24988, 24 September 1946, Page 8

REPLY BY CHAIRMAN OF DAIRY BOARD

“ STABILISATION NOT AFFECTED ”

<P.A.> WELLINGTON, September 23. "The statement which Mr P. M. Butler makes to. the effect that farmers are breaking stabilisation is entirely misleading,” said Mr W. E. Hale, chairman of the Dairy Board, in reply to criticism of his comments about the local butter market position. “The facts are simply these. Money in respect of the local market that will now go into the dairy industry stabilisation account? for the 1946-47 season will not be paid out to the <iairy farmer. It will be held there to his credit as a cushion against the time when overseas prices fall,” said Mr Bale. “This credit does not, therefore, affect stabilisation at aIL and the taxpayer will be safeguarded in the future if and when prices fall by the amount placed to the credit of the stabilisation account at the present time.; the cost of holding down the price of butter at Is 6d per lb locally will not be borne by the taxpayers. because Great Britain granted the New Zealand Government a specific lump sum payment for the'very purpose of holding down the price of commodities on the local market, particularly those that make up the standard ©f living such as butter. “Mr Butler must have very little knowledge of the dairy industry, for he apparently expects dairy farmers' to forgo all claim to the £28.000.000 lump sum payments, and in addition to find ithe cost of holding down butter in New (Zealand to Is 6d per- lb, which would tcost between £1,250.000 and £1.500,000 on the present rationing basis.”