AID FOR FARMERS
MONEY FOR IMPROVEMENTS. QUESTION OF SECURITY. COMPANIES TURN DOWN GOVERNMENT’S LATEST OFFER. [Special to “Northern Advocate.”! HAMILTON, This Day. The policy of the Government in regard to financial aid for dairy farmers needing it for dairy shed improvements, by administering and guaranteeing loan advances, and by collecting instalments of the sums lent, is set cut in a letter received by the South Auckland Dairy Association, which considered the matter yesterday.
The acting Minister of Finance, Hon. A. Hamilton, stated that since the previous circular had been issued it had been decided to modify the conditions under which advances would be made to companies who were prepared to finance their farmer suppliers. The Government, said the Minister, would be prepared to make funds available to dairy companies for approved work on the farm, and would take security either direct from the companies by means of a first or second debenture, or, if this was not considered desirable, security would be taken from the farmer either in the form of a promissory note endorsed by the companies or in some other form embodying a guarantee of repayment by the company. Any advances made in either of these ways would carry interest at 4 per cent, but the Government would pay to the company an amount equal to £ per cent per annum on the aggregate amount of loans outstanding at the end of each half-yearly period. This would be equivalent to a payment of \ per cent as administration expenses incurred by the company in deducting loan charges from the dairy cheques of suppliers. The Minister concluded by appealing to the members of the association for their co-operation in the desire to improve the quality of dairy produce. - After discussion, the association was unanimously of the opinion that it was unfair to ask the dairy companies to guarantee such loans and that the responsibility should be assumed by the Government.
A resolution that the Minister be advised to this effect was carried.
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Bibliographic details
Northern Advocate, 25 July 1935, Page 8
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331AID FOR FARMERS Northern Advocate, 25 July 1935, Page 8
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