IN ELECTION YEAR

Poverty Bay Herald, Volume LXIII, Issue 19137, 5 October 1936, Page 10

IN ELECTION YEAR

DAIRY FUND SURPLUS METHOD OP DISPOSAL CASH PAYMENT EXPECTED GTKP.OENE RESOLUTION A suggestion was made at (ho ward conference in Gisborno on Saturday that ;i surplus from Iho Government's dairy marketing operations during 393G-.T7 would bo paid out in cash during election year. The secretary of the Dairy Board, Mr. T. ('. Brash, calculated "that if lliere was a surplus it could not bo tier It with before election year. The ye;, did not close until the end oi July, 19.".7, ami after the disposal of all the produce from the 1936-37 season and dealing with all accounts, it would probably lie early in 3938 before il would be known whether or not there would be a surplus. "That is election year," Mr. Brash said, "so yon have a gOod lighting chance of getting it in cash." Mr. Brash made this statement in reply to Mr. D. Gribble, who moved that in the event of any profit accruing from the marketing of dairy produce by the Government, it should be distributed in a cash bonus to producers.

This was seconded by Mr. A. Donald Toltiga Day, and carried. LOCAL MARKET LOSS.

During the. earlier part of the meeting, the"chairman of the Dairy Board, Mr. A. ,T. Murdoch, said that Ministers had stated that any surplus would bo used for the benefit of the industry, not in ihe form of a gift. ]\lr. Murdoch said lie, did not agree with that argument. "When one took a beast to a sale, and it was knocked down, the vendor was finished with the beast.

Another voice: With this difference: You are not forced to take your beast to the sale.

A suggestion was made by Mr. H. D. dcTJautour, Wairoa, that the Government should raise the present year's guaranteed price to recoup the industry from the. loss sustained by companies on the local market by the introduction of the guaranteed price for export butter.

The secretary of the Kia Ora Gooperative Dairy Company. Limited, Mr. .1. 11. Sunderland,, stated that before the guaranteed price was fixed, the retail prices were. Id to IJd above that level, but now the local market value must be based on the guaran* teed price for export butter. Mr. Brash said that the companies would not get a profit from the local market unless they set up a pool, but the Government would not do that because it wished to keep down the cost to the consumer. He believed the provisions should be made for a profit on the local market for division among the producers. "But," ho added, "you are not going to get it now." EFFECT OF EXCHANGE Mr. E. R. Renner held that had the Government kept its promise suppliers, would have had a higher guaranteed price thai) 12 0-1 (id. The Government had promised to eliminate the exchange, lie thought it would be inadvisable to remove the exchange, but allowing it to remain had not been in the Government's calculations. The farmer had to pay the exchange on everything he purchased, and if the Government had kept its promise it would have either reduced the exchange or given the farmer something to compensate him for it. 'The farmer Would be worse off this year under the guaranteed price than under the old system. ;

It was decided to urge for an increase in the guaranteed price to compensate for the loss on the local market, by selling butter at the export guaranteed price.