HEAVY DEFICIT FOR SEASON

Southland Times, Issue 23839, 9 June 1939, Page 8

HEAVY DEFICIT FOR SEASON

BUTTER AND CHEESE MARKETING MINISTER’S ANALYSIS OF GOVERNMENT SCHEME (United Press Association) DUNEDIN. June 8., An announcement that the seasons deficit on butter and cheese, sold under the Government’s marketing sc "®? le ? was estimated at £1,827,000 and that unless the market conditions changed materially the ultimate loss would be still heavier was made by the Minister of Agriculture (the Hon. W. Lee Alartin) at the annual meeting of the South Island Dairy Association. Mr Martin said this deficit was to May 25. In view of the heavy shipments of Australian butter with the consumptive demand below last year, it was considered unlikely that any material, price advance would take place in the meantime. Stocks of cheese were large and with the heavy production of Canadian cheese future prospecfs were not encouraging. A resume of the prices. since the marketing scheme was inaugurated nearly three years ago showed that for the first season the deficit was £272,109. This sum with interest had now been paid by the Government from the Consolidated Fund. For the 1937-38 season the surplus would be very close to the estimate £555,000 given in the 1938 annual accounts. At the end of the Minister’s address the Minister was asked if the loss under the guaranteed price would be made up by the Government and would the charge be made on the Consolidated Fund or the Dairy Account. He answered: “You will have to wait until Mr Nash’s return before that question is answered. However, there has been no indication that any future deficit will be charged against the Consolidated Fund.” ' GUARANTEED PRICE Mr D. F. Routledge: In the event of a deficit, is that a present to the dairy farmer in view of the fact that 95 per cent, of New Zealand’s exports come from the land? The Minister: When the guaranteed price was introduced, the Government undertook to pay a price which would give to the dairy farmer a reward for the service he was rendering. Where there is a surplus after the first year it goes into the industrial account to offset a deficit in the future. We are guaranteeing to the farmer a certain price from August 1 to July 31 each year. - When he was asked if he could give an indication of the figure of the payout to dairy farmers for the 1939-40 season, the Minister replied that Mr Nash would probably be back in the Dominion before .the time for its announcement.

“There have been a considerable number of discussions between Mr Nash and Mr Hale (chairman of the Dairy Board),” he continued, “and I think the Minister was disappointed that the industry did not accept the proposals he put to it. He felt under the circumstances that industry might have met him. It will fall to my lot, if Mr Nash is not back, to make a recommendation to Cabinet.

“I am in touch with him over the question of dairy prices, and it is not possible for me at this moment to make a statement about the guaranteed price, but I hope,” said Mr Martin, “that the price will be of benefit and to the satisfaction of the industry. I am a dairy farmer myself, and I know what is a fair price.” TUBERCULOSIS IN DAIRY COWS PASTEURIZATION THOUGHT ADEQUATE SAFEGUARD (Special to The Times) DUNEDIN, June 8. The opinion that the dairying industry could not stand a complete application of the tuberculin test for dairying cows at the present time was expressed by the Minister of Agriculture (the Hon. W. Lee Martin) at the South Island Dairy Association’s conference. The question arose when Mr W. Muir (Tuturau) asked what the Government proposed to do to make the test universal. “The problem is a national one,” Mr Martin said, “and much is being done; but with as high as 60 per cent, reaction to the test, the industry cannot afford the wholesale culling and slaughterings that would be necessary. In the meantime the Health Department considers that pasteurization of milk is an adequate safeguard- Both the Department of Agriculture and the Health Department are alive to the matter, however, and as soon as a universal tuberculin test is warranted it will be applied.”