DAIRY PAY-OUT

New Zealand Herald, Volume LXXV, Issue 23058, 8 June 1938, Page 12

DAIRY PAY-OUT

£500,000 SURPLUS SPECIAL ARRANGEMENT NOT PART OF POLICY RESERVE PLAN DELAYED [by telegraph —own correspondent] GISBORNE, Tuesday The distribution to tho farmers of tho surplus in tho Dairy Industry Account is not part of the Government's policy, but is merely a special arrangement for tho current year, according to a statement made by the Minister of Education, tho Hon. P. Fraser, in tho course of an address at llnatoria.

Referring to the loss of £300.000 in tho first year of tho guaranteed price scheme, Mr. Fraser said,'tWs loss had not been placed as a debit in tho Dairy Industry Account, because it was regarded as an experimental year. This year up to tho present, the Minister added, there was a surplus of £500,000. It was tho Labour Government's policy that in years in which there was a surplus this sum would bo held against years when there would bo a deficit. ' _' , This policy, however, would not be put into operation this year, but £500,000 or so would bo distributed to tho dairy farmers before the end of the year. A statement to this effect had already been made by the Prime Minister, the lit. Hon. M. J. Savage, said Mr. Fraser, but tho way in which tho surplus would bo distributed would be announced by the Minister of Marketing, the Hon. W. Nash, shortly. GOVERNMENT'S AIM UNIFORMITY OF PRICE ADVANTAGE TO FARMERS MINISTER DEFENDS SCHEME [BY TELEGRAPH —PRESS ASSOCIATION] DUNEDIN, Tuesday The Minister of Defence, tho Hon. F. Jones, speaking on the guaranteed price at the farmers' conference to-day, stated that if the local price were permitted to vary in accord with the London price, dairy farmers would not have a guaranteed price, and essential stability would be lost. While at present the local. _ selling prices were lower than those in London, they could easily conceive likely occasions when the reverse situation would obtain. Uniformity in regard to local prices was important in the Government's marketing policy. The conference carried a remit commending the good work done by the Dominion executive in preparing statistical data to show conclusively that the rising costs, both on tho average dairy farm and in the factory, had completely offset any material gain which might have resulted from the guaranteed price, and urging the Dominion executive to keep this matter to the fore.