‘No Intention Of Cutting Subsidies’

Press, Volume C, Issue 29662, 4 November 1961, Page 12

‘No Intention Of Cutting Subsidies’

(New Zealand Press Association) WELLINGTON, November 3.

“The Government has never at any time indicated that it intended to cut down subsidies,” said the Prime Minister (Mr Holyoake) in the House of Representatives today, during discussion on the vote of £13,379,000 for stabilisation for the current year.

Last year £15,045,000 was voted, and £15,351,000 was spent This year £3.090,000 was voted to subsidise butter to the consumer (last year £5307369 spent), £394300 for eggs (£373025), £4,550,000 for milk (£5,080,696), wheat and flour £4.250,000), and gas £495,000 (£500,000). Mr A. H. Nordmeyer (Opposition, bland Bay) said that the items on the estimates were an indication that the Government had no intention of agreeing to the suggestions made from time to time by those who thought that food subsidies should be cut. “It would be helpful to certain sections of the community if the Government announced that it had no intention of reducing subsidies,” said Mr Nordmeyer. The Minister of Finance, Mr Lake, replied that he was pleased to repeat the assurance given by the Prime Minister that the Government had no present intention of doing anything about subsidies. The Leader of the Opposition. Mr Nash, said that “present” meant "today.” The Government had no intention of interfering with subsidies during the current financial year, because it had made provision for them.

Mr Lake: The matter has not been under discussion by the Government Mr Nash: Can we have an assurance that the money voted will be used? Mr Holyoake: The money cannot be used for anything else. The Government has not at any time indicated that it intended to cut subsidies. It is its duty to consider expenditure. The maintenance of subsidies is provided for at least until March 31 next year. The Government has no present intention of reducing subsidies.