APPLE SUBSIDY WITHDRAWN

Southland Times, Issue 23773, 22 March 1939, Page 15

APPLE SUBSIDY WITHDRAWN

LOCALLY MARKETED FRUIT NO EXPORT GUARANTEED PRICE NEXT SEASON (United Press Association) AUCKLAND, March 21. Auckland and provincial fruit growers have been informed by the Government that its subsidy for locally marketed apples has been withdrawn, and that no export guaranteed price will be paid next season. At the present time the subsidy is computed on the difference between the assessed Dominion average price a case and 5/2. It is expected that last year’s pay-out, which should be made at the end of this month, will amount to about £lOO,OOO, or possibly more. Growers stated that they believed the Government’s refusal to continue with the subsidy was due in a large measure to dissatisfaction with some of the growers. Several of them stated that the Minister of Marketing (the Hon. W. Nash) had drawn the attention of the growers to their responsibility to the Government under the scheme. As the result of the Govrenment’s decision, the growers expect to be paid a subsidy for fruit marketed locally to the end of December. They do not expect any payment for apples marketed locally since then. The export guarantee will operate to the close of the present season, which is at the end of May, but not after that.

The serious nature of the move was stated by the growers to lie in the fact that they relied upon the Government’s assistance to arrange the necessary capital for the conduct of their orchards. It served as security for bank overdrafts and permitted the advance importation of such materials as cases.