DAIRY FUND DEFICIT

Press, Volume XCVIII, Issue 28894, 14 May 1959, Page 16

DAIRY FUND DEFICIT

Conditions For Negotiation

(New Zealand Press Association) HAMILTON, May 13. The suggestion by the Minister of Agriculture (Mr Skinner) that the Dairy Board was trying to evade its responsibilities for the deficit of £ 7.25 m in the Dairy Industry Account was “unfair and misleading,” the chairman of the board (Mr A. M. Linton) said today. The industry was at all times ready to negotiate on the question of the deficit, provided the Government was equally willing to negotiate on other matters outstanding between the industry and the Government, said Mr Linton. “These include the question of being paid a fair price for butter sold on the local market and some allowance for the high cost of locally produced butter boxes which are completely protected against competition both internal and external. The Government has, up till now, been quite dogmatic in its refusal to negotiate on these matters. “Mr Skinner maintains that there is no national responsibility for the millions we lost through dumping. I would simply quote what he said in the House on the delay by the Government in tabling a case on dumping—‘Millions of pounds of hard-earned money could have been saved instead of allowing it to dwindle away while nothing was done. What has been achieved now could have been achieved just as easily months ago’.” Mr Linton said the board was prepared to negotiate with the Government on a method of advances from the Reserve Bank or if no advances were necessary —and this now appeared to be a strong possibility—the industry was prepared to negotiate a way in which future reserves could be built up. All the industry asked was that the Government should be equally fair in discussing the circumstances and conditions under which the £7.25m deficit was incurred. The industry had a strong claim for treatment similar to that which other local industry received. “It is quite ridiculous for the Minister to suggest that such negotiations might leave New Zealand open to a charge of dumping,” said M r Linton. “If the Minister had succeeded in recovering compensation from the British Government when he pressed the claim last December, the deficit could have been wiped out. Crediting such compensation would certainly not have left us open to the charge of dumping and neither would that charge lie if the appropriate credits are now set against the deficit as we suggest.”