DAIRY PRICES

Evening Post, Volume CXXIV, Issue 120, 17 November 1937, Page 5

DAIRY PRICES

ADJUSTMENTS MADE

VALIDATING CLAUSE

Certain adjustments in the payments for butter and cheese exported between July 31 and September 3 last are provided for-, in the Finance Bill introduced in the House of Representatives last night.

In explaining this particular section, the Minister of Marketing (the Hon. W. Nash) said it provided that the purchase price for butter and cheese during the 1937-38 season sheuld be paid for 1.11 butter and cheese not exported prior to July 31, 1937. The ordinary procedure would be for the sum to be paid after the price had been fixed, hut the Audit Department held that it was not possible for the Government to authorise retrospective payments, so that all butter and cheese exported between July 31 and September 3 last had been paid for at.the old prices. It was necessary for Parliament to authorise payment of the difference between those prices and the prices now ruling. "

Another provision lived up to the promise made by the Government to allow a differential on butterfat produced for cheese manufacture of ljd per pound over butterfat produced for butter manufacture. It had not been possible to ascertain the pay-out lor butter until the accounts came in about 3 week ago, and it was now proposed to pay a farthing per pound for cheese graded prior to March 30. That would enable something more than a halfpenny per pound to be paid for butterfat used for the manufacture of cheese, which would bring the differential price into line with the Government's promise. .■■;.■ Mr. Nash said there was also a provision under which butter graded late and which would not have been exported to July 31, 1937, but which was exported prior to that date at the request of the Department, was paid for at the new price. The Bill also validated the purchase of Picot Bros.' business. , Provision.was made in the Bill for the distribution to buyers of butter boxes last year of the £30,868 which had accumulated in deductions made from the price of butter for the purpose of equalising the price of butter boxes. A point made by the Minister in reply to questions was that producers of butter would receive more than expected as a result of the adjustments authorised in the Bill.. The, estimated pay-out per pound was 13.04 d, but the average payment would be 13.58 d. The Leader of the Opposition (the Hon. A; Hamilton) asked if the Bill dealt with the difficulty that; arose with regard to dairy produce shipped after July 31, but manufactured prior to that date. Mr. Nash replied in the affirmative. The Act was clear, he said, and the Government must pay the new price according to tiie Act. The old price had been- fixed- on tho understanding that when the new price was determined the difference between the two would be paid. The Bill was read a first time,'