CONSUMER SUBSIDIES

Otago Daily Times, Issue 26916, 30 October 1948, Page 4

CONSUMER SUBSIDIES

Dissatisfaction Expressed

It was decided at yesterday’s meeting' of Federated Farmers to forward a letter to the Dominion Council expressing dissatisfaction with the replies received from the Prime Minister, Mr Fraser, and the Minister of Finance, Mr Nash, in respect to the termination of consumer subsidies from the proceeds of hides, pelts, tallow, etc., used locally.

The Dominion Council wrote stating that in a letter to the Meat Board the Prime Minister had advised that Cabinet liad decided that it was not possible to free pelts, sheepskins, bobby calfskins, hides and tallow from control, as to do so would infringe the Government's stabilisation policy. Mr Sutherland (Hauraki) had asked in the House whether the Government was prepared to terminate all consumer subsidies made at the expense of'the primary producers from the proceeds of these products, and Mr Nash had replied that it was incorrect to state that consumer subsidies were made at the expense of the primary producers from the proceeds of such products. As in the ease of other essential commodities which were both exported and. used locally, supplies were made available to local consumers at a stabilised price adequate to cover the cost of production, plus a reasonable margin of profit to I|ie producer. Supplies in excess of local requirements were exported, and had recently received higher prices, the excess beipg set aside and held in the stabilisation accounts for the future benefit of flic industry. The Government intended to adhere to its present policy in this matter, and was unable to accede to the request of Federated Farmers.