BUTTER SUBSIDY

Northern Advocate, 22 March 1934, Page 4

BUTTER SUBSIDY

r highly improbable, • POSITION OF EXCHANGE BATE. ? OFFICIAL DECREE AWAITED. (Special to “Northern Advocate/*) WELLINGTON, This Day. The statements, recently made by the Prime Minister and the Minister oi ! Finance, reaffirming their previous I declarations that the rate of exchange j will remain unchanged until the end of the present export season, have raised the question as to whether, in May or June, there is likely to be any reduction. Though it has not been possible this week to secure any amplification of their statement' from either Minister, the impression’ prevailing • officially is that, although the high exchange may be due for review at the date indicated/ no change is intended. The rate has long since ceased to depend on the factors of trade and | the national balances, and has become essentially a political matter. Under these circumstances, the depressed conditions of the overseas dairy market will operate heavily in favour of maintaining the high rate of exchange. It is already regarded as a financially impossible feat tQ load the Budget with the liability involved in a subsidy on butterfat production, so that the Government, Avheh it announces a negative decision on this point, wall, it is thought, desire to have the exchange maintained as one substantial benefit to hard-pressed producers. As a revival of the rumours of changes tends to create a feeling of uncertainty in the minds of business people, particularly importers, an official statement concerning the views suggested may be anticipated at an earlv date.