S.M.P. bill S3ISM

Press, 6 November 1984, Page 3

S.M.P. bill S3ISM

PA Wellington The final payout for sheepmeat S.M.P.S will be $265 million, the Meat Board has estimated, bringing the total S.M.P. bill for 1983-1984 to $315 million, $2O million above Government forecasts. The board said that the final figures for the last season were not quite ready, but the latest estimates projected a payout of $215 million for lamb and $5O million for mutton. The total for the previous season, 1982-83 was $157 million for lamb and mutton, as well as $17.1 million for beef. The board estimates that the industry will have contributed $55.9 million for

sheepmeat and $6.5 million for beef through its own support scheme. That means the total support for sheepmeat would be an estimated $325 million in the 1983-84 season. The Ministry of Agriculture has estimated that the S.M.P. bill for wool in the same season will reach $5O million. Early this year the Ministry published estimates for the year, and forecast that S.M.P. payments for sheepmeat would be around $235 million and about $6O million for wool. The board estimated that the total amount in the Meat Income Stabilisation Account would be $4OO million. This included $340 million

which had built up in the account by September, 1983; $55.9 million for sheepmeat for the last season; and $4 million for beef. Under the agreement the board reached with the previous Government, endorsed by the present Government, this would convert to a subordinated loan and for five years no interest or principal would be paid. Then equal instalments of interest and principal would be paid and the board estimated the first year’s payment in 1990 would amount to $2O million. The board group finance manager, Mr Ross Cuthbert, said that he considered that with inflation the amount would not be a big burden to the industry.