FRUIT INDUSTRY

Evening Post, Volume CXIX, Issue 78, 2 April 1935, Page 14

FRUIT INDUSTRY

WELL ESTABLISHED

GUARANTEE TO CEASE

BOARD TO BUILD FUND

i- "It is considered that the fruit int- dustry is now sufficiently established for a system of a guarantee to cease, , r and the Government has arranged with h the Fruit Control Board for a fund to ll be built up during the ensuing three ,(. years to enable the board at the end il of that period to be in a position, unless unforseen circumstances arise, to be 1 able to carry its own finances for ex- » port of fruit without further assistance " from the Government," said the Minister of Finance (the Rt. Hon. J. G. Coates) in the House of Representae tives last evening, dealing with the E clause in the Finance Bill which s facilitates the setting up of a guarantee s fund by the New Zealand Fruit Export Control Board. ■■ The Minister said that since 1923 the Government had facilitated the export B of fruit to the United Kingdom and - European markets by means of a year ■ to year guarantee to growers at various 3 per case rates, and subject to stipulated ; conditions. Under' that arrangement j the Government had been called upon , to provide various sums annually from i the Consolidated Fund totalling to date t some £150,000 upon 10,000,000 cases of ; apples and pears exported. Under the Bill, the 'Fruit Export ; Control Board was authorised^ to establish a special reserve fund out of ■ moneys received by the board by way of levy,'and also in respect of the sale of fruit to provide financial assistance by way of loans to producers whose market proceeds on the sale of fruit did not attain a cettain.pre-determined rate per case to be fixed by the board, which rate, for the current season, had been fixed at 9s per case, New Zealand currency. • GOVERNMENT'S LIABILITY. Under an agreement entered into with the Government, the Fruit Board undertook to arrange contributions from producers to the fund at a fixed rate per case calculated to produce £ 12,500 for each of the years, ■ 1935, 1936, and 1937. For the current export year the Government would contribute to the fund £ 12,500: Where during the 1936 and 1937 seasons a grower's average return was below the average rate determined by the Fruit Board with the concurrence of „ the Government, the Government would pay to the board's export guarantee fund 50 per cent, of the shortages, provided the agreed upon rates did not exceed 9s, New Zealand currency per case c.i.f., overseas destinations, and provided the fruit had been exported in accord with the Government's export requirements. The liability of the Government under that arrangement was not to exceed £12,500 for each of the seasons 1935, 1936, and 1937. Government assistance to the export guarantee fund was to cease with the payment made for the 1937 season. Where the price realised on account of any producer was not sufficient to return him an amount equal to' the amount fixed by the board, the amount of the deficiency might be advanced to him by way of loan out of the fund, at such rate of interest as the board might determine. The amount of any deficiency so advanced to any producer was to b.e recovered out of any surplus received by the producer in any subsequent years over the amount fixed as payable to producers for that year. The fund might be given as security for overdraft moneys obtained by the board to enable it to finance the shipment of fruit under its control and intended for export. •'■