WHO WILL PAY?

Evening Post, Volume CXXI, Issue 115, 16 May 1936, Page 8

WHO WILL PAY?

There is still more than a little , fog about the explanations given re- ■ garding operations i on the Dairy : Industry Account which is to be 1 opened for the Government market- ! ing of dairy produce. The dairy in- . dustry conference asked the Minister j of Finance if the industry would be 1 ultimately liable for a deficit which , might accumulate over a period of , years as between the guaranteed price and market realisations. The Minister replied: .-. If there...was a.deficit between the ' guaranteed price and the market price, ! that would be the responsibility of ' the Government, and there would be ; no liability on the producer. If there ' was a surplus the Government would ' have to decide what was to be done ] with it. .. ' 1 Speaking on the third reading of 1 the Marketing Bill in the House of < Representatives, the Minister con- 1 firmed his earlier statement. It was ] not proposed, he said, in any way i to take sums out of {he Dairy In- < dustry Account. i If there were a loss, the answer was that it was a national loss,, but the national gain prior to the loss would be infinitely' greater by keeping the" farmer in an economic position ' throughout the year. ] In the Legislative CounciJ,.however,, i the Hon. M. Fagan, speaking for the ] Government, said that the Dairy. In- ] dustry Account "was not an annual ] account, but a/continuing one, with i deficits carried forward as a set-off i against possible surpluses." This is J nearer to real stabilisation than we -j understood from the explanations of ■ the Minister of Finance. It may still i be stabilisation with a subsidy. That 3 depends on the prices fixed in the , first and second years, and market ; movements subsequently. But Mr. ■< Fagan has made it clear that if ' realisations exceed payments the sur- : plus wilL be' applied in wiping out j previous deficits. Will the farmer's < agree to this, or will they demand ■ that they should always have the , market gain and, the Government should have the market loss? ' :