AUSTRALIAN MILK DISPUTE

Press, Volume LXXXIII, Issue 25083, 15 January 1947, Page 7

AUSTRALIAN MILK DISPUTE

GOVERNMENT RAISES SUBSIDY CANBERRA, January 14. The subsidy to Australian milk producers will be increased by Id a gallon, according to an announcement by the Prime Minister (Mr Chifley), who said that there would be no increase in the price to consumers. This brings the average returns to is 7Jd a gallon, against the producers’ demand of la The president of the Milk Zone Dairymen’s Council, which has been threatening to withhold milk from Sydney and Newcastle if its demands are not met. says that the increase is insufficient. The increase will substantially increase the total Government sub sidy to producers, which is against the general policy of the Chifley Government Mr Chiflev said that a succession of unfavourable seasons had affected the position, but that, though Price Stabilisation had rejected the proposal for a higher retail price, the producers were still entitled to relief. Mr L. C. Turton, president of the Dairymen’s Council, now says that the Government is splitting straws, and [that if there is a drought the producers will not be able to continue selling | at the new fixed price.