PHOSPHATE COSTS

Southland Times, Issue 22364, 2 July 1934, Page 8

PHOSPHATE COSTS

SUBSIDY STOPPED DEADLOCK BETWEEN PARTIES PRICE NOW £4 3/6 A TON 'A (Per United Press Association.) Auckland, July 1. An announcement that the Government subsidy of 5/- a ton on the price of superphosphate had been discontinued was made in Auckland to-day. The subsidy, which was for a six months’ period, expired on Saturday and negotiations between the four fertilizer companies concerned and the Minister of Agriculture, the Hon. C. E. Macmillan, were continued in Wellington until Saturday morning. The negotiations failed to bring about a renewal on a basis acceptable to both the Government and the manufacturers.

According to information available the cost of the raw material has fallen to the extent of 1/6 a ton of superphosphate and it was suggested by the manufacturers that the Government provide a reduced subsidy of 3/6 a ton, which would have resulted in the price to the farmers being unchanged at £4 a ton. The Government, however, proposed a subsidy of only 2/6, conditional upon the manufacturers bearing the additional 1/- a ton. The Government had an opportunity of making a very careful investigation of the manufacturers’ costs and was assured by the manufacturers that it was impossible for them to carry any additional burden. The Government would not agree to any subsidy unless the price to the farmer was reduced below £4 3/6. The result is that the subsidy will not in future be available and the price of superphosphate to farmers will be increased from £4 to £4 3/6 a ton as from to-morrow.