FREEZING COMPANIES TO REFUND STABILISATION SUBSIDY

Evening Star, Issue 26136, 25 June 1947, Page 6

FREEZING COMPANIES TO REFUND STABILISATION SUBSIDY

fP.A.) INVERCARGILL, June 24. As the result of the withdrawal of two subsidies paid to freezing companies on meat exported overseas, companies will have to refund oneeighth of a penny per lb on all meat killed this season. The subsidies have already been paid to the companies, which are required to make retrospective repayment. The reason for the withdrawal of the subsidies was given to-day by the general manager of the New Zealand Meat Producers’ Board. Mr ,T. J. Evans who has been visiting Invercargill. He said that all companies were notified on May 20 that after a survey of their financial position by the Government, in association with the board, it was decided that there was a case for the cancellation of one of the subsidies paid out of the Meat Industry Stabilisation Account to cover increased costs. In the opinion of the board and the Government, the companies were sufficiently well off to forgo one-eighth of a penny retrospective from October 1, 1946. In March last. Mr Evans said, the price of tallow increased by 80 per cent., which was equal to one-eighth of a penny on the meat killed. The total subsidies being paid to the companies amounted to five-sixteenths of a penpy per lb on meat exported. Twosixteenths had been withdrawn, twosixteenths. were replaced by the inerased price for tallow, and one-six-teenth would remain ns the subsidy. The amounts refunded by the companies would be paid back into the Stabilisation Account, to be used in the event of a recession of prices.