DAIRY PAYMENTS

New Zealand Herald, Volume LXXIV, Issue 22893, 23 November 1937, Page 13

DAIRY PAYMENTS

THE EXTRA AMOUNTS

EXPLANATION BY MR. NASH

OPPOSITION CONTENTIONS CHEESE PRODUCER'S POSITION [])Y TELKCItAI'H —SJ'KCIAL I!KI'OHTKIt] WELLINGTON', Monday The amounts involved in the additional payments from the Dairy Industry Account to be authorised by the Finance 15ill were given by the Minister of Finance, the Hon. W. Nash, iu moving the second reading of the bill in the House of Representatives to-night. Mr. Nash said the bill authorised a payment representing the difference between last season's and the current season's guaranteed price for dairy produce, to be paid for butter and choose exported after July 31 last and before the issue of the order 011 September 4 fixing the new prices. This retrospective payment was expected to involve £38,000, which would be paid to dairy factories for distribution to dairy farmers as soon as the necessary accounts had been completed after the passing of the bill. Cheese Factory Suppliers

Provision was also being made for ,tho payment of an additional farthing a pound to suppliers of butter-fat for ehcess in respect of cheese exported last season. Because the supplier of butter-fat for butter had received more than was expected it was necessary to keep faith with the cheese producer and give him a little more. The extra sum involved would be £165,000.

Discussing the provision in the bill relating to the deductions made from tlie price of butter for the purpose of equalising the price of butter-boxes Mr. Nash said that to get a measure of equality between the users of the various types of boxes 3d had been deducted from the payout to each factory using the saranac box. That procedure was varied slightly in cases where the butter was wrapped in parchment foil. These deductions had resulted in the accumulation of a balanco of £30,860 17s, and it was proposed to distribute that sum to all dairy factories in so far as it could be decided which were entitled to it. Mr. Hamilton's Criticism

The bill, continued the Minister, also authorised butter and cheese of late grading exported at the request of the Primary Products Marketing Department .to be paid lor at the price it would have received had it been exported at the normal time after July 31.

The position of the cheese producer with regard to the financial arrangements made in connection with last year's guaranteed price payments was the subject of criticism by the Leader of the Opposition, the Hon. A. Hamilton. The cheese account inside the Dairv industry Account showed a profit of £258,000, he said. Various deductions had to be made from that to cover differential margins, _ end _of season payments and administrative expenses and the final profit was reduced to £18.354. Mr. Nash: Isn't that vastly different? Surely you have to pay expenses before you can determine your profit. "The' position is quite creditable," Mr. Hamilton continued, "but what lias the cheese producer got out of it? He has not received quite the full market value of his production." The Minister: Take in whey butter, which is associated with cliecSe, and there is a profit of £12.000. Farmer's Extra Costs

Mr. Hamilton: Then put on the extra costs which the farmer lias had to meet and you will find that he is well out of pocket. In Southland, Mr. Hamilton continued, dairy production was practically confined to cheese. The same could be said for Taranaki. It seemed that those two provinces were helping to keep up the position of the industry in the rest of the country. "The bill also validates the purchase of Picot Bros.. Limited." Mr. Hamilton said, "but I fail to see why the Minister does not name in the bill the exact price paid in the transaction." The Minister: I informed the House. "Yes, round n bout £(30.000," Mr. Hamilton replied, "but the figure should have been definitely stated."