DAIRY PRICE

Dominion, Volume 32, Issue 262, 3 August 1939, Page 10

DAIRY PRICE

Demand For Fulfilment Of Promise SCHEME REVIEWED “The Government was very eulogistic of the guaranteed prices, scheme while it was showing a profit to the State, but as soon as it shows a profit to the farmers it is a different story,” said the Leader of the Opposition, Mr. Hamilton, in initiating the Budget debate in .the House of Representatives last night. “If the Government has not realized by now that the basis of New Zealand’s economy is very largely linked up with the price of our export products it is time that it had. The Government promised the dairy-farmers a standard of living comparable with other. sections, and the dairy-farmers will insist on this promise being fulfilled.” The third year of the guaranteed price system ended on Monday, said Mr. Hamilton, and though it would be some time before final accounts for the year were closed it was estimated that there would be a deficit of £2,000,090._ The first year showed a loss of £272,000. This was liquidated from the second year’s revenue before the Budget surplus of £BlO,OOO was arrived at. In the second year which saw the scheme brought into full operation the Government was able, after paying a substantial bonus of £815,000 above the guaranteed price, to show a credit balance in the account of £560,000. Therefore, though dairy-farmers had a win from the Government in the first year of £272,000, they had a loss over market realizations the second year of £560,000. For the third year the net deficiency would be about £1,500,000.