DAIRYING DEBT

Press, Volume C, Issue 29504, 4 May 1961, Page 16

DAIRYING DEBT

Loss £160,000 A Week

(N.Z. Press Association) WELLINGTON, May 3. New Zealand’s dairying industry was running into debt at the rate of £160.000 a week or about £8 million a year, the chairman (Mr R. Woolerton) told the Dairy Section of Federated Farmers today. Mr Woolerton said the industry was going into "glorious liquidation” and could see no relief coming from action being taken on the dumping issue. To make up the present deficit, producers would have to get just under 400 s per cwt for butter. “Anyone who believes we can get that long enough to balance - our account is a little optimistic.” he said. Mr A. E. Piddington said there was some confusion over the question of payments from the bank. He asked whether the industry, if it went into the red, had to pay the money back. "I understand it it gets too big the overdraft will be wiped out,” he said, asking that there should be some clarification of the position. Mr Woolerton said it was the policy of the industry to pay off the debt. It was hoped the industry’s account would balance over a number of years. Other speakers considered any reduction in the guaranteed price this year would be opposed by producers. “It is a little Gilbertian to me. We are talking glibly of 32d as if it were the cost of production. It is .not,” said Mr J. H. Ferguson (Auckland). A difficulty was that the industry was getting away in principle from an assessed cost of production, he added.