Dairy Bill attacked

Press, 22 September 1980, Page 11

Dairy Bill attacked

PA Wellington The Government was accused of removing another element of the framework of price stabilisation when the Dairy Board Amendment Bill was introduced in Parliament yesterday. The bill, which follows the Government’s decision to remove price controls on butter ends the present price-equali-sation scheme for butter sold on the local market as from April 1 this year. The Leader of the Opposition (Mr Rowling) said this would boost consumer costs. Butter was a staple item in the family food budget and the proposed change would

have a direct effect on that budget. Mr Rowling said a 500 g pack of butter had cost 36c in 1975 but now cost 79c. "How long before it costs at least $1 or even higher?” he asked.

Mr Rowling said the bill was symptomatic of the Government’s inability to control inflation and its habit of passing the buck elsewhere, in. this case to the Dairy Board.

The Minister of Agriculture (Mr Maclntyre), said increased fuel costs had had a major effect on butter prices through tanker cartage costs. The price of butter had had to go up, whether it was subsidised or not, he said. The Minister said the main thrust of the bill was to make the Dairy Board more secure in some of its marketing by giving it the power to control the export of certain kinds of dairy produce to sensitive markets.

The Dairy Board had a growing export trade in products containing a mixture of dairy and non-dairy ingredients, such as specialised milk powders. There were imminent dangers of restrictions being placThere were imminent dangers of restrictions being placed on milk products by importing countries and the Government wanted to see an orderly growth of exports, he said.

Mr Maclntyre said the board was, therefore, given the power to restrict the export of any compound or mixture containing less than 60 per cent dairy product by weight. Labour’s shadow Minister of Overseas Trade (Mr Walding), responding to repeated challenges from Government members to state the Opposition’s policy on subsidies, declared that a Labour Government would reintroduce subsidies on butter and other basic foods.

Mrs Ann Hercus (Lab., Lyttelton) accused the Government of maintaining a selective policy On subsidies. It was not prepared to subsidise butter but it clearly supported subsidising the town of Shanon, agriculture producers, and eletcricity for aluminium smelters, she'said.