Subsidy On Fertilisers

Northern Advocate, 21 July 1949, Page 4

Subsidy On Fertilisers

WELLINGTON, Thu. (Sp.).—Alterations: to the subs'dy payable on imported pliosphatic fertilisers were announced by tiie Minister of Agriculture (Mr Cullen) yesterday. The Government will now pay a subsidy of £3 a ton on finely-ground North African slag and guano, subject to the provision that, if the subsidy brings the selling price below £9/10/a ton the subsidy is to be reduced so as to maintain the selling price at that figure.

The subsidies are to be reviewed next May.

The new rates of subsidy apply to tonnages now being unloaded and on subsequent shipments discharged. Importers, distributors and farmers’ organisations are being notified of the new prices. DOWNWARD MOVEMENT 'J'lie Minister recalled that an announcement had been made on June 25 that a subsidy would be paid of £4 a ton on imported basic slag and £3 a ton on North African phosphate.

Immediately after this announcement, downward price movements in basic slag made it obvious that a differential subsidy would upset the historic price margin between slag and North African phosphate. Discussions therefore took place 'Hth producer boards and organisations concerned.

It was apparent that the downward trend in f.o.b. values of imported phosphatie fertilisers might jeopardise the steady output of superphosphate manufactured in New Zealand.

All producer representatives agreed that steps should be taken to obviate this, as a material reduction in output of superphosphate would lead inevitably to an early price increase.