Dairy Farmers’ Reaction To Economic Report

Press, Volume C, Issue 29643, 13 October 1961, Page 17

Dairy Farmers’ Reaction To Economic Report

(New Zealand Press Association)

HAMILTON, Oct. 12. Any reduction in the basic price for dairy products would have serious repercussions. said Mr A. E. Riddington, chairman of the Waikato dairy section of Federated Farmers, today, commenting on the Prime Minister’s statement on the first report of the Monetary and Economic Council. “The Prime Minister says the Government proposes to confer with the dairy industry with the object of lessening the inflationary impact of the prospective deficit for the 1961-63 season,” Mr Riddington said. “It is only a few short weeks ago that the Pricefixing Authority fixed the price to dairy farmers at 33d- a pound. “With that the farmer, in thousands of cases, has un-

dertaken commitments to stock firms and banks to buy stock and bring about improvements on his farm. "Even to talk about reducing the price now would be disastrous. “Surely both the council and the Government can realise what effect this reduction would have, not only on the farmer, but on shops and smaller businesses in our country towns. “The country uses the Dairy Account, when in credit, to build State houses, roads, and for other works, but it is not prepared to help out with the deficit. “When one considers what the dairy industry provides by way of overseas funds, then the deficit is only a very small percentage. Also it is only a loan and has to be repaid by the industry. “Even the council, had it so desired, could have found cases where economies could have been effected without setting out to cause such uneasiness in one section of the community.”