LIME TRANSPORT

Hauraki Plains Gazette, Volume 60, Issue 4340, 6 October 1950, Page 10

LIME TRANSPORT

MORE SUBSIDY WANTED THE FARMERS’ REVIEW DEPARTMENT MAKES REPLY A recommendation that on the review of the existing lime agreement in August, 1951, renewal be arranged for a 75 per cent subsidy on all rail freight, plus 60 per cent of actual cost of other transport, was recently made to the Department of Agriculture by Federated Farmers of New Zea 1 and (Inc.), states the Auckland province of Federated Farmers. In reply, the department stated that when the views of the dairy and wool boards and the Dairy Products Marketing Commission had been ascertained, the Lime Advisory Committee would then give consideration to the resolution. It was pointed out that, as the meat and dairy industry accounts contributed 85 per cent of lime transport assistance costs, the resolution should first be placed before these and other produce organisations to determine their reactions to the cost aspect. The present rail subsidy on lime is 75 per cent, payable after the farmer bears the full cost of the first I’s miles of railage (at 4/lid per ton). The suggested 75 per cent subsidy on all rail freights woyld increase costs by from £120,000' to £133,000', the department stated.

A 60 per cent subsidy on actual cost of transport other than railage would increase subsidy costs by £242,000. No Road Subsidy

Under existing arrangements, twothirds of the railed lime in New Zealand receives no road subsidy at all because it is delivered to farmers within three miles of a railway station, for which distance there is no subsidy available. This unsubsidised cost is conservatively estimated, by the department, at 5/- pef ton on 1,099,000 tons. “Administratively, a 75 per cent subsidy on all rail freights w?uld have no effect on the work entailed under the present subsidy, but the 60 per cent subsidy on cost of all other transport would’ treble the work to be done by the Department of Agriculture and lime suppliers . . . and would also involve the New Zealand railways in similar extra work,” stated the department.

“The present subsidies, since they have been improved, (from 50 to 75 per cent on distances over and above the fiist 15 miles) appear to 'be encouraging the use of lime,” the department adds. At first, when the 50 per cent subsidy replaced the free railage of lime, tonnages dropped but the new 75 per cent subsidy is bringing more rail business. Indications are that 1951 figures will be much higher than those for 1950. “Consequently, if Federated Farmers’ recommendation for greater assistance were adopted, subsidy costs would be considerably advanced, both by the higher percentage of subsidy and by the increasingly large quantities of lime transported. When the reactions to this increase by the organisations contributing towards the subsidy, were known, then further consideration could be given to the recommendation.