Want Government Statement On Produce Payment

Northern Advocate, 28 May 1941, Page 9

Want Government Statement On Produce Payment

I A request ’to the Minister for Marketing to announce at an early date the intention of the Government in paying for produce for the coming season, thereby enabling dairy companies to fix advance payments to suppliers was made in a motion approved by the Northland Dairy Association annual conference in Whangnrei yesterday. It was also decided that in view of the possibility of butter being stored for an indefinite period, the Government should be asked to pay 50 per cent of the advance in six weeks and the balance in 12 weeks. Pronouncement Awaited If an announcement was made by the Minister, the executive was empowered to call a further conference when the standardisation of advance payments in Northland could be considered. It was felt by delegates that the conference could take no action regarding the standardisation of advances to suppliers until a pronouncement was made by the Government as to its policy of payment for dairy produce. Before deciding on the amount of the advance something definite was required from the Government, said Mr. F. Elliott, of Hikurangi.

Interests, Costs The difficulties facing dairy companies in regard to finance when large stocks of butter were in store were instanced by Mr. E. G. Appleton when he stated that this season to the end of April the Northern Wairoa Company had paid £IOOO in interest on overdraft as compared with £3OO for the previous year. The Kaipara factory, said Mr. McLeod, had, at March 20, so much butter in store that it was leaning on the bank to the extent of £40,000. Interest on this amountetd to £5 a day. Dairy companies could not go on paying interest indefinitely and the whole question was one of national interest. The extra costs through long storage should be a charge on the national funds, not on the dairy farmer.