S.M.P. to total $335M?

Press, 30 June 1982, Page 7

S.M.P. to total $335M?

PA Wellington Government payments to farmers under the wool supplementary minimum price for the season to June 30 will total more than $lB5 million. Taxpayers are likely to face a bill of about $l5O million for meat payouts in the current season, which ends on September 31.

The managing director of the Wool Board. Mr Hugh Peirse. said that about $lB5 million in Government supplements had been paid out or committed. The final total would not be available until about the middle of next month, but it was unlikely to be more than $l9O million.

A spokesman for the Meat Board said that about 5125 million in meat supplements had been paid out at the end of May. This included $75 million on lamb. $8 million on mutton, and $42 million on beef.

Unless there was a big upturn in market prices — and the industry did not expect that — the' final meat payout would be about $l5O million, he said.

The Government had to pay a supplement of nearlv 20 per cent on the first wool sale of the season in Napier, in August last year. Last week, at the second-to-last sale of the season in Christchurch, the supplement was nearly 24 per cent.

The chairman of the Wool Board. Mr Doug Mcllraith. told a Federated Farmers conference in Wellington last week that the market had slumped in the first half of the season and had remained virtually static for the rest. The main reason was Door demand from the recessionhit main customers of the northern hemisphere. When the meat season began on October 1. Government supplements were needed on lamb. beef, and mutton. Nearly nine months later, substantial Government payments on the three categories of meat are still being paid, reflecting disappointing returns in the major overseas markets.