GOVERNMENT ACTS

New Zealand Herald, Volume 81, Issue 24824, 22 February 1944, Page 7

GOVERNMENT ACTS

INCREASE TO FARMERS

COSTS ALLOWANCE MADE The Milk Commission report had been examined by the Stabilisation Commission, announced the Minister of Agriculture, the Hon. B. Roberts, in a statement yesterday The Government had also considered the main features of the report and certain decisions had been made.

The long-term proposals in the report embodied recommendations relating to a permanent policy and organisation of the milk industry, and the short-term recommendations were for alleviating matters which it was considered were in certain centres retarding an adequate supply of milk, said the statement. The most important of the long-term recommendations was the setting up of a central authority. The Government endorsed this recommendation and early consideration would be given to the framing of the necessary legislation. Increases in the South The main short-term recommendation related to a higher payment to producers in Dunedin, Cliristehurch and Auckland, continued the Minister's statement. The Government was in complete agreement with the commission's recommendation that the consuming public should be assured of adequate guarantees as to the quality of the milk for their consumption, and was anxious that a high standard of level supply and quality should be achieved in all the main centres as soon as possible. However, these conditions generally could not be achieved immediately, and in the opinion of the Government it was therefore desirable, both in the interests of consumers and the industry, that the conditions should become reasonably operative before payment was made in full of the short-term price increases recommended by the commission. As it was clear that some immediate price adjustment to producers in Cliristehurch and Dunedin was necessary to prevent further deterioration in the supply position there, increases ranging from Id to 3id a gallon between the months of March and August had been authorised. The increases would be met by Government subsidy. Basis of Allowance Referring to the commission's recommendation that the equivalent of the farm costs allowance of .767 d a lb. butter-fat granted to the dairy industry this season should be applicable to town milk producers, the .Minister said the Government had decided that the producers in the four centres were to be granted a farm cost allowance representing an increase in price of .33d a gallon as from March 1, 19-14. This was the equivalent of the allowance to the dairy industry. "This allowance will not apply to those Auckland producers whose milk is sold raw and who consequently receive a higher price than producers whose milk is pasteurised, nor will it apply to producer-vendors, because their increase of .33d a gallon as producers will be offset by a corresponding decrease in their margins as vendors." stated the Minister. Organisation Provided

"The allowance of .33d granted to producers is to be paid by vendors, but treating houses are to be reimbursed by the" Government, and vendors _of loose raw milk whose vending margins over the 12 months' operations ending August 31 are 10d a gallon or loss may state a case to the Government for reimbursement. Producers in areas outside the four main centres shall he entitled to the .33d allowance provided that the allowance may be refused if the producer is in receipt ol 12.83 d or more a gallon at the farm sate, unless such payment is justified by special circumstances. "Provided measures are taken immediately toward securing the savings recommended by the commission, and subject to general compliance with the conditions of level supply and quality and butter-fat standards, producer prices in Auckland,_ Christchurch and Diinedin will be raised as from September 1. 1944, to the full amount recommended in the short-term provisions." _ Pending the setting up of the central authority an interim organisation _ to implement the Government's decisions and to collect data would be set up, consisting of a town milk office under the control of the Minister of Agriculture and Marketing.