PRICES FOR STOCK

Otago Daily Times, Issue 26540, 15 August 1947, Page 9

PRICES FOR STOCK

EFFECT OF SUBSIDY DECISION EXPLANATION BY BOARD P.A. WELLINGTON, Aug. 14. To acquaint owners of store stock with the future outlook so that they may take steps to protect their position, the New Zealand Meat Producers’ Board has issued a statement in explanation of the remarks of the Minister of Finance, Mr Nash, on subsidies. Mr Nash’s statement said that farm subsidies, with minor exceptions, would be cancelled from agreed dates and that compensatory adjustments would be made in the price paid for the products concerned. The changes in farm stabilisation procedure had been discussed with representatives of the major primary producers’ organisations, with whom the final details would be arranged. The general manager of the Meat Board says the proposals envisaged increases in prices to be paid for fat stock during the 1947-48 season beginning in October next. Such increases or compensatory adjustments meant that instead of the meat producers continuing to defray the cost of holding down the price of fertilisers and other items used by them by a payment out of. their Meat Industry Stabilisation Account, they would receive from that account a commensurate increase in fat stock prices. The effect of this adjustment was that the meat producers would in future have to pay directly instead of indirectly the full prices for the materials involved. The word “ subsidy ” was a misnomer when used in connection with the holding down of the cost of fertilisers, etc., as far as the meat producers were concerned, for instead of the expense being borne by the Consolidated Fund or the general community it was paid for out of funds owned by the producers in their own Meat Industry Stabilisation Account. Before completing the range of increases in fat stock prices, the Meat Board would await the forthcoming wage pronouncement.