Dominion Fort, results helped by subsidies

Press, Volume CXV, Issue 33869, 14 June 1975, Page 19

Dominion Fort, results helped by subsidies

f .\e’.c Zealand Press Association) DLNEDJX. The subsidies on rock phosphate and sulphur had averted what might have been a disastrous year, said the chairman of Dominion Fertiliser Company. Ltd. (Mr T. McCristell) in the annual report.

"In the face of substan tially increased prices for rock phosphate, and sulphur prompt Government action in providing subsidies had held the price at its original level," he said. In spite of subsidies the cash position of the New Zealand farmer has been sc serious that the company? fertiliser sales for the year

i- to March 31 fell 32 per cent ir-to 174,000 tonnes. r. The net profit fell 28 per n cent or $131,160 to $332,385. d Gross profits and other inti, come fell 16.7 per cent to $1,072,579. e The net profit was after v providing $3lO less for o depreciation of $309,181, s $471 less for rebates of r $12,251. and $lOl,OOO less

for taxation of $242,000. The directors are recommending an ordinary dividend of li per cent, compared with last year’s 10 per ■ cent, and a supplementary 3 per cent, which was also paid last year to compensate for previous dividend payments. The rebate payable tc . farmer shareholders in lieu of a dividend will be 160 c a tonne on a qualification of : eight shares a tonne. The serious economic plight of the New Zealand farmer was by no means over, and substantial and ; sustained increases in prices are needed to meet cost increases. Mr McCristell said. | “Until returns to the farmer show real improve'ment the New Zealand econ- > omy will continue to Jimp along, and our overseas

i funds will continue to fail or be propped up b\ substantial external borrowing. "No company or business in New Zealand can escape this situation. In simple terms the economic recovery New Zealand seeks begins ( with improving profits to 1 the farmers.” Mr McCristell said. It was essential that the

Government continued direct financial support to the farming industry, he said.