PATERSON PLAN

Timaru Herald, Volume CXXXVII, Issue 19228, 7 July 1932, Page 11

PATERSON PLAN

AUSTRALIAN BUTTER BOUNTY. NO USE TO NEW ZEALAND. By Telegrapb—Bre*? Association WELLINGTON. July 6. The reasons why the Australian system of export bounty on produce, known as the Paterson Plan, would not work in New Zealand, were explained to the Dominion Executive of the Farmers’ Union by the secretary of the Dairy Export Control Board (Mr Brash), who said thei Paterson Plan was aimed at keeping up the price of butter in the local market. In New Zealand the farmer was being asked to sell butter at less than it cost him to produce it. The Paterson Plan would be of no use to New Zealand, for the reason that New Zealand exported all but one-sixth of her butter. Australia, on the other hand, exported only onethird of her butter. Mr Brash said the dairy producer in Australia was not having a very difficult time. In the best districts this year the Australian dairy farmer would be getting as much as 1/5 per pound for butterft. against lid or 1/ - which the New Zealand farmer would ! receive. That was due partly to the Paterson Plan, and partly to the exchange. For the Paterson Plan to be of any benefit to New Zealand, it would be necessary to send the price of butter up so high that the public would not stand for it.