Govt gives $20M for sheep subsidies

Press, 31 August 1985, Page 15

Govt gives $20M for sheep subsidies

PA Wellington The Government has given the Meat Board another $2O million to spend on subsidies for sheepfarmers this killing season. This brings to $l3O million the amount of taxpayer money spent this year on supplementary minimum price payments for sheepmeat which payments will cease at the end of next month.

The board spokesman, Mr Barrie Saunders, said that the extra handout would meet the shortfall between the original $llO million and the amount the board actually needed. Since the Government announced the lump sum subsidy last October the board has said it is not enough. The board disagreed with

the Government’s calculations and earlier this year asked for more money. In spite of an initial belief that the board was trying to change the rules agreed to in October, the Government is believed to have been won over in June by the board’s arguments about disappointing market returns and a bumper lamb crop.

It was apparently reluctant, however to fuel the United States countervailing duty action against New Zealand lamb exports by agreeing to more handouts then. Since the Americans removed their injury test in March, they have been able to impose duties on any New Zealand goods produced with the help of sub-

sidies. The amount of Government assistance influences the level of the duty.

It is believed the Government told the board not to expect the money before the Americans had set a preliminary duty. Mr Saunders said the board had heard since June that it would get more Government money. The United States Commerce Department made its preliminary determination on June 21.