Flour Subsidy Down

Press, Volume XCIX, Issue 29263, 22 July 1960, Page 13

Flour Subsidy Down

I From Our Parliamentary Reporter}

WELLINGTON, July 21. A drop of 6d a 251 b bag in the subsidy paid on flour was . announced tonight by the Minister of Finance (Mr Nordmeyer) when he presented his Budget, The subsidy on bread remains at 4d per 21b loafMr Nordmeyer said the subsidy paid on butter would rise to Is Id a lb this year. This confirms the estimate in the Economic Survey presented earlier in the Parliamentary Session this year, when Mr Nordmeyer estimated that the 1959-60 end-of-season payout, associated with the guaranteed price

tor dairy products, would increase the unit subsidy payment on butter to Is Id a lb. The estimate of 4%d a quart for the 1960-61 subsidy on milk, made by Mr Nordmeyer in the Economic Survey, is also confirmed in the Budget. In accordance with the Government's policy to preserve price stability as far as practicable, it was regarded as essential that consumer subsidies should be retained, Mr Nordmeyer said. “Mainly because of the increased prices to be paid out to dairy producers, the cost will rise appreciably this year." The subsidies payable this year are compared in the following table with those in force last year: —

1960-61 1959-60 s. d. s. d. Butter (lb) .. ..11 8 Milk (quart) .. 41 4 Bread (21b loaf) .. 4 4 Flour (251b bag) .. 4 2 4 8 Eggs (dozen) .. 4 4 Gas (100 cu. ft.) .. 1 11 I 11